Price increase during a RECESSION?

[wh5916]

Claude hit it right on the head here. Here's what I posted in another related thread.


I still can't believe all the people who start crying about price and channel changes. This is nothing new and it has been going on since the beginning of pay TV. I don't care if it was cable or satellite, but this has been the norm from day one.

Don't believe me? Try and go back and see what you were paying for TV in the early and mid 90's and look at what you are paying now. You will see that you are paying an average of over $20 more now !!!!! Also compare your channel packages. Are they still the same or do they stay the same? NO. So why is it such a big surprise or issue every year?

Every Feb you see price increases because this is when all the new contracts are signed by the providers from the programmers who always increase their costs to the providers.

If you want to see this stop then you need to focus your frustrations on the channels themselves !!!! You need to contact any company that advertises on the channels that increase their rates and let them know that you will boycott their product if they continue to advertise on these channels. It is the programmers that are making your rates go up not the providers. Sometimes these costs are way out of line and the provider has to dump the channel because they know that the consumer will freak out if they raise their rates even higher than they all ready have to because of the other price increases.

So if you want to see another price increase next Feb, and you will see one, then just sit back, keep blaming the wrong source, and keep switching back and forth between providers to get a "better deal". This solves nothing !!!!

Just my $.02

Annual rate increases from DirecTV weren't the norm until Rupert Murdoch assumed control. One year my package price even went down a dollar or so following some changes that Direct made to their packages.

 

[vurbano]

I think DirecTV should feel the impact of increasing prices during a recession. To that end, I reduced my service yesterday (2/14/2009). I will not have all the movie channels now, I cancelled HD Accesss, I removed the monthly protection plan and cut my bill in about half. I will add these things back if DirecTV will give a PRICE CUT rather than a PRICE INCREASE.

Now, during a recession is time for a price cut rather than a price increase. If many of their customers will do the same, they should get the message!

I dropped Showtime and the silly HD pak. I agree 100%. In this economy? Are they on crack?

 

[mrnick]

I am guessing this is not likely, but are satellite providers under any type of stipulations like cell-phone providers when terms/plans are changed?

I know a lot of people use changes in the TOS for cell phone providers to get out of there contract legitly, not sure if this applies here.

Any thoughts?

 

[jessshaun]

I am guessing this is not likely, but are satellite providers under any type of stipulations like cell-phone providers when terms/plans are changed?

I know a lot of people use changes in the TOS for cell phone providers to get out of there contract legitly, not sure if this applies here.

Any thoughts?

(d) Our Programming Changes. Many changing considerations affect the availability, cost and quality of programming and customer demand for it. Accordingly, we must reserve the unrestricted right to change, re-arrange, add or delete our programming packages, the selections in those packages, our prices, and any other Service we offer, at any time. We will endeavor to notify you of any change that is within our reasonable control and its effective date. In most cases, this notice will be about one month in advance. You always have the right to cancel your Service, in whole or in part, if you do not accept the change (see Section 5). If you cancel your Service, a deactivation fee (described in Sections 2 and 5(b)) or other charges may apply. Credits, if any, to your account will be posted as described in Section 5. If you do not cancel, your continued receipt of our Service will constitute acceptance.

...and with all due respect you all knew when you signed up that the price would eventually go up.

 

[shodobe]

Have any of you noticed when you go to the store and buy your usual products that they seem smaller or lighter? Companies are starting to package their products in smaller units and still charge you the same as before. Smaller sizes don't seem so obvious than just increasing the prices. For every 2 or 3 ozs they take away just makes their profit margin more. Everybody has their breaking point and also their needs. I don't mind and even expect price increases every year. Most people don't understand supply and demand and how companies stay in business. Four dollars a day for entertainment? Pretty cheap if you ask me. In todays economy everyone is trying to maximize their profits. I did downgrade some of my programming and only for the reason that it was channels I never watched. The premium channels also got to the point of constant repeats and no new movies. I will probably upgrade to the premiums at the end of the year when new movies are on that I want to watch. I did save around $40 a month.