What Will DISH Do Next?

[Scherrman]

Well, I would say the fees are subsidizing the programming costs because I think the cost of the content would be a bigger number than the package prices listed today. NONE of the MVPD's can advertise or set the package price relative to the TRUE cost because that number (dollar amount--package price) would be so high for most consumers that they would RUN to alternatives. The MVPD's have to keep that price NUMBER as low as possible and IMHO, the only way to do that is to raise the fees such that they make up the differnce in programming costs, which is by fare the HIGHEST cost to MVPD's and a cost NONE have ever been able to keep programming costs down to a level that would not be harmful to the MVPD's. It is OUT OF CONTROL. And that is the future of the OTT stremainng services like SlingTV and DirecTVNow: those services will balloon in price over a relatively short time and we will be in the same situation of high programming costs passed ot the consuerm in the form of high package pricing. The OTT streaming services have the IDENTICAL pricing model and the same program packaging model as the MVPD's today; it's just less expensive for now. But just wait. All the same hell is just moving from cable and sat to the OTT streaming TV services via internet.

I was saying this same thing a few years ago when everyone was clamoring about how streaming is the way to go and will be so much cheaper. Just like anything new, it starts off being inexpensive until they get larger and expenses increase. Not only that but networks will see that's where everyone is trending towards and they'll raise their prices to take advantage of it.

 

[primestar31]

I was saying this same thing a few years ago when everyone was clamoring about how streaming is the way to go and will be so much cheaper. Just like anything new, it starts off being inexpensive until they get larger and expenses increase. Not only that but networks will see that's where everyone is trending towards and they'll raise their prices to take advantage of it.

Then they'll continue to just cut their own throats, until nobody can afford their programming.

 

[Scherrman]

Then they'll continue to just cut their own throats, until nobody can afford their programming.

Yep. It's cyclical. New company comes out with a new product and it's affordable and exciting. They grow incredibly fast and need to expand which increases expenses. Company has to raise prices some to count for the rise in expenses. Customers want more from the company and they deliver it to keep customers happy which increases expenses and forces them to raise prices again. Eventually that product gets to a point where the price has become too high for what the customer wants and then switches to the next up and coming company with the affordable price. This process can take many years sometimes.

 

[primestar31]

Yep. It's cyclical. New company comes out with a new product and it's affordable and exciting. They grow incredibly fast and need to expand which increases expenses. Company has to raise prices some to count for the rise in expenses. Customers want more from the company and they deliver it to keep customers happy which increases expenses and forces them to raise prices again. Eventually that product gets to a point where the price has become too high for what the customer wants and then switches to the next up and coming company with the affordable price. This process can take many years sometimes.

It's accelerating VERY fast now, and more people are becoming aware. The providers only have one choice left: They NEED to contain their costs, and find ways to at least keep them where they are, or even back them off a bit. Maybe alacart will finally be part of that, I don't think they have a choice. IF any channels cease to exist because nobody wants them, then that shows they are worthless, and are there for no reason other than to try to inflate profits.

Otherwise, competition is going to keep coming out with more streamed solutions, which will be good for us.

 

[Scherrman]

It's accelerating VERY fast now, and more people are becoming aware. The providers only have one choice left: They NEED to contain their costs, and find ways to at least keep them where they are, or even back them off a bit. Maybe alacart will finally be part of that, I don't think they have a choice. IF any channels cease to exist because nobody wants them, then that shows they are worthless, and are there for no reason other than to try to inflate profits.

Otherwise, competition is going to keep coming out with more streamed solutions, which will be good for us.

I know Dish is always working on being the best provider and trying to stay affordable. It's very possible that they may not be able to make it work though and if they don't then they will slowly go away. If they do then oh well, there are plenty of other options I can switch to. I have a feeling Dish will still be around for a long time though, at least in some capacity.

 

[lparsons21]

Unless and until something comes along to address those areas not served by high speed internet Dish and Direct will have a market. The big question is will they have a big enough market to remain profitable. Over the next 5-10 years I suspect that high speed internet will become available nationwide and at that point, there will be less to sell to for Dish and Direct.

That said, right now the IPTV schema is fairly cheap in comparison, but it comes at the cost of being not all that convenient to use. But the prices of today for those services won't remain as low as they are when/if sat/cable goes away or is dramatically reduced. The content providers are showing no willingness to re-price their goods.

 

[primestar31]

Unless and until something comes along to address those areas not served by high speed internet Dish and Direct will have a market. The big question is will they have a big enough market to remain profitable. Over the next 5-10 years I suspect that high speed internet will become available nationwide and at that point, there will be less to sell to for Dish and Direct.

That said, right now the IPTV schema is fairly cheap in comparison, but it comes at the cost of being not all that convenient to use. But the prices of today for those services won't remain as low as they are when/if sat/cable goes away or is dramatically reduced. The content providers are showing no willingness to re-price their goods.

They will when there's NO subscribers left willing to pay their price.

 

[Scherrman]

They will when there's NO subscribers left willing to pay their price.

That's going to take a very long time. They would pull the plug on the business before all of their subscribers left.

 

[lparsons21]

They will when there's NO subscribers left willing to pay their price.

Yep, but there are a hell of a lot of people that don't have access to high speed internet at reasonable prices and can't get cable at all. It will be quite a long time before we see the demise of sat tv IMO. In some fairly near future might see the two combine if they can get by the regulators.

Sent from my Google Chromebook Pixel (2015) using Tapatalk

 

[jerryez]

Cox raised my internet cost twice last year $5 in January and $2 more in September. The only way I knew was when I looked at the bill and noticed it was higher than last month. Cox did not even make a note on the bill that the price has increased. At least Dish notifies you in advance of cost increases.

I pay Cox more for internet than I pay Dish for TV.

 

[Hall]

People seem to be forgetting that to some, "TV" is a vital utility to them and I'm not talking OTA reception only. They need hundreds of channels, including movie channel packages. They think nothing of paying $150-200/mo, especially for bundled service of TV, phone, and internet. They also never call to get better rates or ask for deals - they just accept it. If they do finally look at their bill and decide they're paying too much, they switch providers to get a promotional rate. I know people who flip back and forth every 2-3 years. And this will sound really weird to "satelliteguys", they don't give a rat's **s about their receiver, DVR, etc, !

 

[Hall]

Cox did not even make a note on the bill that the price has increased

In Ohio, if I'm not mistaken, cable and satellite providers have to give at least (30) days notice. You'd think it may be easier to just notify everyone no matter where they live but with some companies, if they don't have to, they won't.

 

[Bobby]

I got notice this month from Comcast, from which I have internet service only, that I'll see a $5 increase next month.

 

[osu1991]

I've had notices on my Cox bill for the last 10 years every time there has been an internet increase. I saw one on my bill 2 months ago about tv price changes. Perhaps it's because of the franchise agreement. I know prices are about $10 higher for Cox Las Vegas than they are for Cox Oklahoma for the same packages.

 

[jerryez]

I do not know about Oklahoma, but in Florida, Cox does not notify you in advance or not at all.

 

[rvvaquero]

I believe that DISH has very little control over the dynamics in place which are working against it's survival. It's really easy for all of us pseudo-CEO's here to criticize and suggest methods and such, but for all practical discussion the industry is going where it's going and the providers are just scrambling to stay viable.

It's been suggested many times that DISH's best bet for survival is in some form of "a la carte" offering. This is what closely resembles the options offered via internet. However, in past discussions it's been pointed out that DISH has very little flexibility in this matter due to it's contracts with the various content provider conglomerates. I have no doubt that DISH would love to be able to offer all their most popular programming via "a la carte", if contracts allowed.

As others have pointed out, DISH will either join the ranks of OTT providers or they will continue in their present form and eventually become a niche television provider for folks in RV's, truckers, and rural remote locations where other types of services are not readily available. JMO

 

[dare2be]

I believe that DISH has very little control over the dynamics in place which are working against it's survival. It's really easy for all of us pseudo-CEO's here to criticize and suggest methods and such, but for all practical discussion the industry is going where it's going and the providers are just scrambling to stay viable.

It's been suggested many times that DISH's best bet for survival is in some form of "a la carte" offering. This is what closely resembles the options offered via internet. However, in past discussions it's been pointed out that DISH has very little flexibility in this matter due to it's contracts with the various content provider conglomerates. I have no doubt that DISH would love to be able to offer all their most popular programming via "a la carte", if contracts allowed.

As others have pointed out, DISH will either join the ranks of OTT providers or they will continue in their present form and eventually become a niche television provider for folks in RV's, truckers, and rural remote locations where other types of services are not readily available. JMO

BINGO. End of discussion. Dish will only do what content owners allow them to do. I'm sure Flex and Sling were long in the works as they tried to negotiate with channels to allow them to do it, hence why Flex is likely going away.

 

[pattykay]

All it takes is offering a $200 or $300 Amazon Gift card--now that Charlie and Jeff are in touch these days--just like his competitors offer to snag new subscribers--and it DOES work. I think Charlie is just being stubborn, as he is known to be, and just can't swallow the idea of handing a few hundred $$$ (in the form of Visa or Amazon gift cards) to get people to sign up for his service. I've known people who WERE going to get Dish, but upon investigating options or getting a mailer, they went for the $200-$300 gift cards instead. When they have hundreds of $$$ put on the table for them to take, people stop caring about the best DVR tech, service, etc.

And Dish has always been weak on marketing and brand building, but its about the money--given to those in exchange for signing up.

Yes, this is exactly why I went back to Directv. ($200 Visa gift card) I only use Directv to supplement my Dish subscription, though.

 

[KAB]

As others have pointed out, DISH will either join the ranks of OTT providers or they will continue in their present form and eventually become a niche television provider for folks in RV's, truckers, and rural remote locations where other types of services are not readily available. JMO

I believe you are thinking a bit extreme, per above. Sure, the market is getting divided. But I don't believe it will get as "niche" as you predict. But if you are right, I will have to buy an RV and 16 wheeler, and park them in my driveway.

 

[jerryez]

Isn't RVs, 16 wheelers and rural remote location where Dish started out. What are you predicting "full circle".