DVR fees?!?

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A very large part of the problem with people posting about the "Billion dollar profit" is because they can't comprehend numbers on that scale. As was so eloquently and accurately pointed out, that is well less than $10/mo per customer. So let's pose the real question here: Is less than $10 per month profit on whatever you pay for your bill outrageous profit? Of course it isn't. In fact that is pretty much operating on a very slim margin. That's probably one of the lowest profit margin businesses out there. If my company only made less than $10 per month per customer, we'd go out of business fast, as would virtually everyone else in business, anywhere.

However, the problem is people cannot comprehend the scale of the money. Like someone said, if Dish offered to lower all their packages $5 per month they would be on the verge of losing money and it wouldn't make anyone happy anyway. A company has responsibility first and foremost to it's shareholders. They are responsible to make money, preferably a lot of it. Obviously to do that they have to strike a balance of value, and I think that millions of people must agree they do provide that value, so therefore they make money. A little bit each month from a whole lot of people. Sounds like a great way to do business.
 
Why are all of their profits suppose to benefit you?

Why should they benefit people who are so rich the money can't possibly improve their lifestyles? You know, when the first corporations were chartered in Europe, it was done under the condition that they serve the public interest and only exist for a set number of years before dissolving. Maybe we should go back to that, or at least the first part of it. Corporations get a lot of legal benefits like limited liability, maybe they should have to give something back to the public in exchange.

It seems there are 2 main viewpoints on this thread at the moment, those who are in business or at least understand it and those who are not and think businesses are suppose to bend over backwards for them no matter what the costs. I know the saying is "the customer is always right" but I now days I think it's getting further from the truth. Customers are getting more demanding and they feel more entitled than ever before. I know that times are tougher and that has a lot to do with it, but this trend started before the economy went to crap. Its a generational thing.

Seems like a lot of people think people should be the ones bending over for the businesses, if you know what I mean. And, yeah, call me old-fashioned, but I do think we'd be better off if businesses lived by the creedo that the customer is always right, rather than treating customers as disposable commodities that they try to wring every last possible cent from.
 
A very large part of the problem with people posting about the "Billion dollar profit" is because they can't comprehend numbers on that scale. As was so eloquently and accurately pointed out, that is well less than $10/mo per customer.

$10 a customer would be 20% on someone with a AT120+ and a basic setup. For someone paying $100, it'd be 10%. Those are big margins. In the old days, a lot of businesses would make 2-3% and be happy with it. Now they expect obscene profit margins. And it's unbecoming for Dish to be making those type of profits and then turn around and get into these channel carriage disputes, depriving customers of channels that may have been what prompted them to sign up but not allowing said customers to leave while under contract, while crying that they are just doing it to save the end customer money and that they'd have no choice but to raise rates if they have to pay some channel 5 cents more a subscriber. BS.
 
HanoverPretzel said:
Why should they benefit people who are so rich the money can't possibly improve their lifestyles? You know, when the first corporations were chartered in Europe, it was done under the condition that they serve the public interest and only exist for a set number of years before dissolving. Maybe we should go back to that, or at least the first part of it. Corporations get a lot of legal benefits like limited liability, maybe they should have to give something back to the public in exchange.

Seems like a lot of people think people should be the ones bending over for the businesses, if you know what I mean. And, yeah, call me old-fashioned, but I do think we'd be better off if businesses lived by the creedo that the customer is always right, rather than treating customers as disposable commodities that they try to wring every last possible cent from.

I didn't realize all of Dish's shareholders were the wealthy! Hell, I didn't even know that normal weren't allowed to buy Dish stock and benefit from these obscene profit margins. Oh wait, neither of those is true.

As for your Europe argument, do you really want to compare the system back then to now? I'd much rather be an average person living in the US today than an average person living in Europe during this golden age of corporations that you seem to think was so much better. Sorry, you can't cherry pick the things you think we're great from a time period and ignore the rest of the circumstances.

You have the equation backwards, Dish's commodities are the services it provides and the infrastructure it uses to provide them. They price them in a manner in which they think will maximize profit. (anything deliberately less would constitute a breech of fiduciary duty to the company shareholders) individual consumers provide the possibility of gaining market share and therefore profit, but it's up to individual consumers to decided if they're interested in buying what Dish is selling.

And the customer is certainly not always right when the customer believes that a for profit company should operate as a non-profit entity. You're never going to win that argument. It's simply not how capitalism was set up.

As for you not deriving any benefit from Dish expanding into the wireless business, hogwash. There's no way to predict how that will turn out. Another major player in that industry will by definition result in more competition, which (generally speaking) will cause increased competitive pressures in the industry causing benefits to consumers. Monopolies are bad, competition is good. There's no way to know of Dish will succeed, if they don't, nothing will change and consumers won't benefit. But at this point, there's no way to tell.
 
HanoverPretzel said:
$10 a customer would be 20% on someone with a AT120+ and a basic setup. For someone paying $100, it'd be 10%. Those are big margins. In the old days, a lot of businesses would make 2-3% and be happy with it. Now they expect obscene profit margins. And it's unbecoming for Dish to be making those type of profits and then turn around and get into these channel carriage disputes, depriving customers of channels that may have been what prompted them to sign up but not allowing said customers to leave while under contract, while crying that they are just doing it to save the end customer money and that they'd have no choice but to raise rates if they have to pay some channel 5 cents more a subscriber. BS.

It's an average of under $10 per person per month. Don't break it down to package level when there's no data along those lines. It distorts things.
 
Welcome to Dish.....where fees are a plenty
You speak as if DIRECTV isn't charging you even more for your R22. Combining the fees into bigger fees isn't much of a win.

DIRECTV even charges a fee on top of the standard DVR fees for the THR-22.
 
You speak as if DIRECTV isn't charging you even more for your R22. Combining the fees into bigger fees isn't much of a win.

DIRECTV even charges a fee on top of the standard DVR fees for the THR-22.
You better watch out the powers that be don't like you talking bad about the other guys. :eek:
 
I didn't realize all of Dish's shareholders were the wealthy! Hell, I didn't even know that normal weren't allowed to buy Dish stock and benefit from these obscene profit margins. Oh wait, neither of those is true.

Not many lower class people own stock. It's hard to make money on it given all the fees associated with each trade if you're dealing with a small investment. Like if you put $100 into the stock market, just with one stock, it'll cost you like $10 to do it, and $10 to get it out, so you'd need to have the stock you buy go up 20% just to break even. Let's not even get into having to buy and sell and holding a diverse portfolio and so on and so forth. Really, one would probably need at least a spare couple thousand dollars to even consider getting into the stock market and hoping to make money with a conservative investment strategy. And I don't think the crowd with several thousand spare dollars or more is the same crowd that is complaining about television related fees and cost increases.

And, if a lower class person ever somehow *does* get an spare couple of thousand dollars, there are usually things they don't have or that are breaking down that need replacing- cars, computers, television, basic furniture, clothing, repairs the landlord never seems to get around to, etc.. Maybe first and last month's rent for a new apartment. It wouldn't go into the stock market because they need a way to get to work the next day, or to replace their computer so their kids can do their homework and they can do their banking and stuff.

As for your Europe argument, do you really want to compare the system back then to now? I'd much rather be an average person living in the US today than an average person living in Europe during this golden age of corporations that you seem to think was so much better. Sorry, you can't cherry pick the things you think we're great from a time period and ignore the rest of the circumstances.

Of course I wouldn't want to live in Europe during the mercantile age. I'm just saying that the model of corporations has changed a lot through the years. It went from something that was allowed only when it was in the public good, which it was supposed to serve, to something that the courts in the US now consider a person with rights (Like free speech, for example, which is really ridiculous, but that's how the courts are ruling), and with an obligation to maximize profit, even when it's at the expense of the common good. Now, you might say, a rich person can spend his money how he wants, but a corporation isn't a rich person- corporations are entities allowed by the government and given special privileges like limited legal liability. It wouldn't be that strange to say "Alright, we're giving you this limited legal liability you say you need to operate, in exchange you need to serve the common good to some degree (or whatever)". If people didn't like it, they could form sole proprietorships instead, where they essentially are the business, and not get the advantages or have the extra obligations (My guess is not many businesses would choose to go that route, because of liabilities concerns and other issues).

You have the equation backwards, Dish's commodities are the services it provides and the infrastructure it uses to provide them. They price them in a manner in which they think will maximize profit. (anything deliberately less would constitute a breech of fiduciary duty to the company shareholders) individual consumers provide the possibility of gaining market share and therefore profit, but it's up to individual consumers to decided if they're interested in buying what Dish is selling.

Well, I think what a lot of people are saying to television providers right now (Not just Dish) is that "We're not interested in what you're selling at the price you're selling it at". More people than ever are cutting the cord. Part of that is because they're using the Internet as an ultimate source of entertainment, but another part of it is that overall customers as a group are seeing rates increase as their own incomes and financial security decrease.

As for you not deriving any benefit from Dish expanding into the wireless business, hogwash. There's no way to predict how that will turn out. Another major player in that industry will by definition result in more competition, which (generally speaking) will cause increased competitive pressures in the industry causing benefits to consumers. Monopolies are bad, competition is good. There's no way to know of Dish will succeed, if they don't, nothing will change and consumers won't benefit. But at this point, there's no way to tell.

You make a valid point there. I'll give you that one. It could go either way. I just don't *anticipate* it helping me personally, but it's not impossible that it might, even if indirectly.
 
I am pretty new to the forum, but I have seen a few posts from certain users with a decent amount of negativity. The reality is, Pay TV is a luxury. Dish's responsibility as a business is to make money for their shareholders and provide a quality product at a reasonable price. It's pretty plain and simple, and I think they do just that. If you want a company to focus on doing something that will benefit you, stop paying for TV and use an OTA antenna. Then put the same amount of money into a savings account, or better yet an investment account. Then the big corporations that you invest in will be benefiting you. I can understand just as much as the next guy that times are tough. I remember my grandparents telling me about their tough times during the first depression, and money wasn't wasted on unnecessary stuff.

As a former business owner who dealt with a large number of customers, I learned that you can't make everyone happy.
 
I am pretty new to the forum, but I have seen a few posts from certain users with a decent amount of negativity. The reality is, Pay TV is a luxury. Dish's responsibility as a business is to make money for their shareholders and provide a quality product at a reasonable price. It's pretty plain and simple, and I think they do just that. If you want a company to focus on doing something that will benefit you, stop paying for TV and use an OTA antenna. Then put the same amount of money into a savings account, or better yet an investment account. Then the big corporations that you invest in will be benefiting you. I can understand just as much as the next guy that times are tough. I remember my grandparents telling me about their tough times during the first depression, and money wasn't wasted on unnecessary stuff.

As a former business owner who dealt with a large number of customers, I learned that you can't make everyone happy.

Mr. Realist, welcome to the forum! I agree with you totally, but I must tell you that for some, logic is not important.

They only want to complain or criticize everyone who believes in the free market system and capitalism. Corporations do no good in their eyes. Of course they seem to forget that these corporations employ many millions of people worldwide, that they provide health benefits, for some even retirement pensions or contributions. They spend money with advertising companies, distributors, retailers, etc...who then in turn do the same. All these additional companies employ people, many give benefits, retirement, etc. All of those employees go out with those paychecks and spend money, where the cycle continues. Yet these companies should not make money, should not be rewarded for their risk, and when they make well less than $10 per month per customer they are viewed as doing something unethical or "obscene".

Your logical, thoughtful, and very intelligent post will be shrugged off as nonsensical thinking. You cannot convince them that TV of any kind is a luxury because there will be arguments that they are entitled (despite the fact that not that long ago in history TV didn't even exist, not even for the rich and everyone seemed to live just fine). They will not buy into the idea that in America, there is opportunity to rise above any situation. I have seen it too many times for anyone to argue differently. In fact, I am living proof that no matter where you started in life, you can excel, as nothing was given to me, I had to work for everything I have achieved and I have substantially risen above the level I was raised as a child financially.

No siree, there is no place for your logical, well-spoken arguments in the minds of some here. Oh, and they MUST have the last word, so be warned. :rant:

But for those of us who appreciate a person with such a realistic viewpoint on things...I welcome you once again! :D
 
$10 a customer would be 20% on someone with a AT120+ and a basic setup. For someone paying $100, it'd be 10%. Those are big margins. In the old days, a lot of businesses would make 2-3% and be happy with it. Now they expect obscene profit margins.

Just for kicks I looked up the 5 year average Net Profit Margin (NPM) on some companies using Forbes.com (feel free to verify these numbers yourself). I used 5 year averages because they are much more accurate than a report on one year.

Dish is 7.9%
DirecTV is 8.1% (same industry as Dish)
AT&T is 10.0%
McDonalds is 18.0%
YUM Brands (KFC, Pizza Hut, Taco Bell) is 9.6%
Tupperware is 8.0%
Clorox is 10.1%
Colgate-Palmolive is 13.8%
Kimberly Clark Corp (personal care products) is 9.3%
Coca-Cola is 22.5%
Pepsi is 11.8%
Phillip Morris is 21.4% (so they are killing you twice if you smoke)
Altria Group (cigarettes, smokeless tobacco, wine) is 24.2%
Anheuser-Busch is 13.3%
Harley Davidson is 8.7%
Proctor & Gamble is 15.1%
3M Company is 14.8%
Google is 25.7%
Apple is 20.7%
Sturm, Ruger & Co (firearms) is 9.6%
Astra-Zeneca (pharmaceutical) is 23.2%
Weight Watchers is 14.1%
Nike is 9.5%
Autozone is 10.0%

I could make this list several pages long. What is factual and cannot be argued is that Dish's profit is well within reasonable standards for any business in any industry. It is less on a 5 year average than DirecTV, which is in the same industry...and also less than all these other well-run, respected companies in a wide variety of industries.

Using your logic, you should be complaining every time you do virtually anything...from washing clothes, to talking on a cell phone, eating out, brushing your teeth, or even throwing back a cold one. If you don't like Dish, that is perfectly fine...but their profit margin is well within reasonable standards...and further complaining about this issue just shows that people either cannot comprehend this information, or simply want to argue. But there is nothing out of line with these numbers from Dish.

In fact, these numbers suggest that what Dish is doing is providing an outstanding value!
 
Just for kicks I looked up the 5 year average Net Profit Margin (NPM) on some companies using Forbes.com (feel free to verify these numbers yourself). I used 5 year averages because they are much more accurate than a report on one year.

Dish is 7.9%
DirecTV is 8.1% (same industry as Dish)
AT&T is 10.0%
McDonalds is 18.0%
YUM Brands (KFC, Pizza Hut, Taco Bell) is 9.6%
Tupperware is 8.0%
Clorox is 10.1%
Colgate-Palmolive is 13.8%
Kimberly Clark Corp (personal care products) is 9.3%
Coca-Cola is 22.5%
Pepsi is 11.8%
Phillip Morris is 21.4% (so they are killing you twice if you smoke)
Altria Group (cigarettes, smokeless tobacco, wine) is 24.2%
Anheuser-Busch is 13.3%
Harley Davidson is 8.7%
Proctor & Gamble is 15.1%
3M Company is 14.8%
Google is 25.7%
Apple is 20.7%
Sturm, Ruger & Co (firearms) is 9.6%
Astra-Zeneca (pharmaceutical) is 23.2%
Weight Watchers is 14.1%
Nike is 9.5%
Autozone is 10.0%

I could make this list several pages long. What is factual and cannot be argued is that Dish's profit is well within reasonable standards for any business in any industry. It is less on a 5 year average than DirecTV, which is in the same industry...and also less than all these other well-run, respected companies in a wide variety of industries.

Using your logic, you should be complaining every time you do virtually anything...from washing clothes, to talking on a cell phone, eating out, brushing your teeth, or even throwing back a cold one. If you don't like Dish, that is perfectly fine...but their profit margin is well within reasonable standards...and further complaining about this issue just shows that people either cannot comprehend this information, or simply want to argue. But there is nothing out of line with these numbers from Dish.

In fact, these numbers suggest that what Dish is doing is providing an outstanding value!


Good information, if folks want to see some profit margins, I can only imagine what the furniture industry is. I have a strong feeling they are pulling some high margins
 
Just for kicks I looked up the 5 year average Net Profit Margin (NPM) on some companies using Forbes.com (feel free to verify these numbers yourself). I used 5 year averages because they are much more accurate than a report on one year.

Dish is 7.9%
DirecTV is 8.1% (same industry as Dish)

In fact, these numbers suggest that what Dish is doing is providing an outstanding value!
Wow some don't like facts either. :eek:
 
I am pretty new to the forum, but I have seen a few posts from certain users with a decent amount of negativity. The reality is, Pay TV is a luxury.

I'm fairly convinced that if they could make any case for it at all, some folks would go around saying that food is a luxury. And, sure, by some standards (bare minimum to survive), cable or satellite, is a luxury, but the fact is, we're talking about total penetration for cable and satellite at 90% in an article I just looked up, and it cited that number as an 18 year low. People grew up with this stuff, many having had it all their adult lives, and, while of course it's not necessary to live, people are going to want to hang on to it and have, in some cases, real difficulty adjusting to missing it.

Plus, many people don't have over the air television available in their area (and that number increased with the digital transition, because people who used to get "snowy" reception often now simply get no signal due to the way the technology works- digital is "all or nothing" signal wise), and even for those who do, it offers less than it used to in many areas. For example, when I was a young child, before we got cable, there used to be like 70 OTA baseball games a year from my local team in it's main market, with those same games dual broadcast in several secondary markets. The cable and satellite RSN channel got a slight majority, but it was only slight, and many of the key games were on OTA- plus all the playoff games. Now, only 25 games are OTA (non exclusively) and only in the home market with no secondary markets allowed to pick up the games, and some playoff games have migrated to cable/satellite as well.

OTA isn't the same as it used to be, because it used to be assumed that it's all the majority, or at least a sizeable minority had. Now it's assumed that nearly everyone has something in addition to that- because almost everyone does- and so some sports teams and leagues feel little compunction about moving their stuff almost entirely off OTA tv.

Mr. Realist, welcome to the forum! I agree with you totally, but I must tell you that for some, logic is not important.

Maybe people just don't buy into your ideology. That's not a rejection of logic, it's just people who see the world differently. Some folks like to see the world as some sort of contest of survival of the fittest. Others like to see it as a place where we rise or fall together, and try to make sure there's a good minimum standard of living for the folks who struggle.

You cannot convince them that TV of any kind is a luxury because there will be arguments that they are entitled (despite the fact that not that long ago in history TV didn't even exist, not even for the rich and everyone seemed to live just fine).

Not that long ago in history, electricity and running water didn't exist either. Would you suggest those things are luxuries? Times change. In Europe, at least one country has declared access to the Internet a basic human right- talk about times changing!

They will not buy into the idea that in America, there is opportunity to rise above any situation.

That's mythology, if applied in absolute terms. Can some people "rise above" tough circumstances and succeed? Sure. That opportunity isn't there for everyone, though, and declining rates of upward economic class mobility is showing that in terms of hard numbers.

Just for kicks I looked up the 5 year average Net Profit Margin (NPM) on some companies using Forbes.com (feel free to verify these numbers yourself). I used 5 year averages because they are much more accurate than a report on one year.

[...]Using your logic, you should be complaining every time you do virtually anything...from washing clothes, to talking on a cell phone, eating out, brushing your teeth, or even throwing back a cold one. If you don't like Dish, that is perfectly fine...but their profit margin is well within reasonable standards...and further complaining about this issue just shows that people either cannot comprehend this information, or simply want to argue. But there is nothing out of line with these numbers from Dish.

I buy the $1 tubes of toothpaste. I doubt they make much money off me. But I do complain about the price of beer- pretty frequently, actually. I just don't do it in the television forum. ;)

Anyhow, while I will grant your point that many corporations generate huge profit margins and it's becoming the new normal, I'd argue that the pressure to achieve that may be part of what causing these bubbles and financial crises, massive layoffs, and moves that don't benefit consumers. Like I said, they now feel the need to squeeze every last penny out of everyone, except about the CEOs, who can pay a cool $10,000,000 a year while they lay off loyal long-time employees and raise prices at whim.

In fact, these numbers suggest that what Dish is doing is providing an outstanding value!

If you say so. Their first year prices aren't bad. Their regular price? Eh, it's about what everyone else's is if you want what I'd consider to be today's basic sports and news, channels-- your local RSNs, ESPN, ESPN2, NBCSN, CNN, MSNBC, FOXNEWS, etc.. My parents have all the channels I need in a cable package are actually cheaper than my regular price Dish package (Though cable prices might be different where I live). Unfortunately, I'm over a state line and the local cable here won't carry an RSN's alternate channel they use for some hockey games (But do actually provide extra RSNs from other adjoining regions, so more games, just less of "my" games), so there's that to consider. But when my contract expires, I may just have to sacrifice that, especially for a promo rate. Or I could look into Directv.

Good information, if folks want to see some profit margins, I can only imagine what the furniture industry is. I have a strong feeling they are pulling some high margins

You're right, which is part of why I've never bought a new piece of furniture in my life. The couch in my apartment was purchased for $35 at a flea market. And, come to think of it, someone else saw it, knew I needed a couch, and brought it over and gave the thing to me, so I didn't even pay the $35. But you can't buy used television service. ;)
 
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Nope, failed a credit check. ....
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That's what I'm doing. But it means I'll likely keep bouncing from provider to provider every couple years. It seems like it'd have been easier for, say, Comcast to just give me ...............................
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Let's say Dish uses their profits to start a cell phone company. How does that benefit me?......................
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And, yeah, call me old-fashioned, but I do think we'd be better off if businesses lived by the creedo that the customer is always right.................
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I just don't *anticipate* it helping me personally, .......................
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I buy the $1 tubes of toothpaste. I doubt they make much money off me..........
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But I do complain about the price of beer- pretty frequently...............................
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I'm fairly convinced that if they could make any case for it at all, some folks would go around saying that food is a luxury................
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You're right, which is part of why I've never bought a new piece of furniture in my life. .......
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someone else saw it, knew I needed a couch, and brought it over and gave the thing to me...........
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But you can't buy used television service.......................




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This topic has been covered many times, and we all agree- the DVR fee stinks. Most of us have made our peace and adjusted accordingly. It is clear this fee is never going away. Some people will never be happy unless they get stuff free. A business needs to make money. If you don't like them, don't give them yours.


It is defenitely time to shut this one down.......................
 
One also has to remember the way the tax system works, Dish spends 300 million on a satellite, but can only deduct 20 million a year on it. The same goes with new customers, they may spend $800 setting them up but they can only deduct so much a year on the customer.

Essentially Dish has had to borrow and spend huge amounts of money in the past to build their system. The profits now are really working on repaying their investment.
 
And all of us that are "rich" have to pay so people can "bounce" from one provider to another. We are just not poor enough to understand..................

Essentially,...................................CLOSE THIS THREAD..........................
 
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