This is the problem. It ain’t gonna get any better either.
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Fox Blocks Millions of DISH Customers
- Thread starter Scott Greczkowski
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DISH annual revenue is $12-13 billion. How long do you think this will take ?
Precisely what I've been saying all along. Add to that the muddied waters of MVPDs also owning channel content, like Comcast/NBC's CSN Sports, and AT&T/DTV owning HBO and ATTSportsnet, which then even pits MVPDs against each other like with CSN Philly with satellite providers, or HBO and Dish.
It'll be a long time before that happens. Too many still demand the channels no matter what the cost. Maybe they would stop if they had to pay the non-subsidized price.
You can sign if you like. It doesn't change the fact that these media giants are trying to increase their broadcast revenues by billions at the same time their audience is shrinking. I will apologize and say I was incorrect with the 3x number. It was only 2x according to AT&T and only 50% according to Nexstar: https://www.newsobserver.com/entertainment/tv/warm-tv-blog/article233943422.html
"in a news release sent July 11, AT&T said that Nexstar was “demanding to roughly double its fees.” The Lansing State Journal reports that the transcript from Stephenson’s July 24 call with investors indicated Nexstar wanted a 50 percent increase."
A big loser are the advertisers. They pay a rate for ads that are based on numbers of viewers. When the advertiser contact the supplier to renegotiate their bill, then we might get the supplier to reach a deal. If you work for one of these advertiser, you might wish to let them know that they are not getting what they are paying for. I contacted some sports leagues and teams. They did not have an immediate concern since their TV revenue was contracted for a period of years on a per team , not per viewer, basis.
I still say just pass the cost on to the customer. Let the market determine what we will pay. That's what the newspaper industry did. Even though a 6-month sub to the Paper is now $350, some people still pay it.
Who is Dish in your newspaper analogy?
So, are you saying MVPDs shouldn't be allowed to refuse to carry channels? That they have to accept whatever price the channel owners want to charge and pass that along to their customers? If so, that doesn't seem very "free market" to me.
Dish is the newspaper company. They have costs, which continue to rise, but they just pass those right along to the customer. Shrinking customer base? Pass it on. Paper costs increase? Pass it on. They don't say "Gee, we're really sorry but we couldn't negotiate a good paper price so now we're not going to provide the product."
I realize "programming is subject to change without notice," but an ethical business doesn't pit its customers against a vendor. Anyone dumb enough to sign a contract and later be pissed that they lost a channel is stuck, for sure, but I'm advocating for walking away when Dish or any company does this. Like my P&G analogy yesterday- I don't care how they negotiate the cost of ingredients in toothpaste, I just want the toothpaste.
I get tired of posters saying people are just "whining". Like really? No HBO, no regionals, no Fox or FS1 and 2. After 10 years I've paused or put on vacation my account for this month, maybe it works out and I come back. If come by the end of October this foolishness is still going on, and I don't care how good the Hopper 3 is, I'll be buying a DirectTV system for myself, enough is enough. Whatever you opinion on DirecTV, this isn't a constant issue with them, and when it is, it works out quickly. I love idea of having HBO back and an NHL Center Ice schedule that actually broadcasts both teams games in HD, including the Canadian ones.
And what's happening when the cost of materials to make the toothpaste goes up? Once the consumer has been hit with enough price hikes, the trend lately is to shrink the size of the tube. Used to be 6 oz., now it's 5.....
Either they find a better business model or more cost effective way to produce the product, or they go out of business. Perhaps the CEO could spare a few of his billions to make up the losses? Hahahahahaha
Well, despite the flawed analogy (Dish doesn't create content like a newspaper does), I am certainly not saying anyone should stick with a provider they are unhappy with. That said, if you think newspapers don't negotiate hard with vendors -- sometimes to the point of service interruptions, you're very much mistaken. I speak as a 12 year veteran of the business. MVPDs are making a choice when they don't accept the terms as offered, that is what makes the market "free," just like you can decide whether or not to buy the newspaper or toothpaste based on whatever criteria is important to you. If it wasn't a free market, they wouldn't be able to walk away.
I like that analogy. Dish is just shrinking the size of the "tube" with less channels. See what I did there? tube/TV
Cord-cutting is gaining momentum because the market price for bundled content distribution is saturated and well above the rate of inflation and at its tipping point.
I contend that Dish and other MVPDs are trying to find a better business model by disputing with the content owner conglomerates over bundling instead of just passing on the status quo rate hikes to consumers.
If I were the president of a usual cable/satellite tv channel, I would be looking to additionally implement as a digital OTA sub channel. MeTV is an amazing example. I think I read it has reached 84 pct market penetration.
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And by doing so, they pit the customer against the vendor, and that's what I oppose.
I do too. But just accepting the rate hikes and forced subsidies is not the answer either.
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