how-to block ads
|
|
Uniqs:
1844 |
Share Topic
 |
 |
|
|
|
| [DIRECTV] Directv Going To Lease Only On 3/1/06 January 13, 2006
EXECUTIVE SUMMARY:
• DIRECTV will be migrating over to a new Lease Program on March 1, 2006, which will require you to sign a new agreement in order to continue working with DIRECTV. As such, this letter shall serve as the written notice required to terminate your existing agreement with DIRECTV. Please be advised that your existing agreement will terminate on February 28, 2006.
• In order for you to continue to act as a DIRECTV dealer, you must agree/accept/approve a new Agreement via the online acceptance method by February 28, 2006; the new agreement will govern our relationship under the Lease Program.
• Your current commission economics will not change other than starting March 1, 2006, commissions will now be paid only for leased equipment instead of purchased sales. Of course, commissions are subject to changes in the future in accordance with the terms of your Agreement.
• In addition, customers will continue to acquire their hardware from you under the Lease Program. Upon activation of the leased equipment, DIRECTV buys the equipment from you and issues payment. Please see details regarding the sale and purchase of leased equipment in the agreement, which will be made available to you shortly.
• Through the new lease model, standard, professional installation remains free for new customers and under the new terms of the lease model, it's free for existing customers as well!
• A Q&A sheet along with a more comprehensive outline of this program is included.
Countdown to the DIRECTV Lease Program!
On March 1, 2006, DIRECTV will be migrating over to a new hardware Lease Program. The Lease Program is designed to provide your customers with competitive offers and to help you continue growing your acquisition of quality customers. The DIRECTV Lease Program will be our primary hardware model to ensure our customers always have access to the most state-of-the-art, up-to-date equipment!
On March 1, 2006, all commission-based DIRECTV hardware transactions will be under the new Lease Program. It is important to note that your current commission economics will in no way change other than the fact that commissions will now be paid only for leased equipment instead of purchased equipment. Of course, your commissions are subject to change in the future in accordance with the terms of your new agreement.
It’s never been easier to have satellite television! With equipment replacement and upgrade offers through our DIRECTV dealers, the new Lease Program takes all the worry away from customers. In addition, leased receivers are backed by a convenient equipment replacement program. If the customer wishes to stop subscribing to DIRECTV service upon fulfilling their programming commitment, they are required to return the equipment to DIRECTV per the terms of the Equipment Lease Addendum.
Page 2 of 5
The new Lease Program requires customers to pay a nominal lease fee, some examples of which are highlighted below (please note that the following illustrations are for new customers only). Note that the monthly lease fee is in addition to applicable programming charges:
New Customer Hardware
Upfront Hardware Lease Fees
Total Monthly Costs to Customer
Commitment Period/Early Cancellation Fee
1 Standard Receiver
$0
$0 Lease Fee (no fee for first receiver)
+Monthly programming
1 Year/ $150 prorated
1 Standard Receiver + 1 DVR
$0 (after $100 mail-in rebate*)
$0 Lease Fee (no fee for first receiver)
+ $4.99 Lease Fee (for second receiver) + $5.99 DVR Service Fee (Whole House)
+ Monthly Programming
2 Years/ $300 prorated
2 DVRs + 1 HD
$197 (after $100 mail-in rebate*)
$0 Lease Fee (no fee for first receiver)
+ $4.99 Lease Fee (for second receiver)
+ $4.99 Lease Fee (for third receiver)
+ $5.99 DVR Service Fee (Whole House)
+ Monthly Programming
2 Years/ $300 prorated
1 HD DVR
$299 (after $100 mail-in rebate*)
$0 Lease Fee (no fee for first receiver)
+ $5.99 DVR Service Fee (Whole House)
+ Monthly Programming
2 Years/ $300 prorated
* New customers are eligible for one Advanced Receiver mail-in rebate ($100) per household; this rebate is subject to changes or termination.
Credit scoring at point of retail remains in effect with the new Lease Program, so the only change new customers will experience are the lower costs associated with becoming a new DIRECTV customer!
New Agreement Required for all DIRECTV dealers
This letter serves as written notice of DIRECTV’s termination of your agreement as required under your agreement with DIRECTV. Accordingly, your existing agreement will terminate on February 28, 2006. Because the lease program is an entirely new business model, it is necessary for every DIRECTV dealer to review and approve the new agreement no later than February 28, 2006. The new agreement will govern our relationship under the lease program. [Of course, both parties will continue to be responsible for any matters and issues from the terminated agreement after the termination date (e.g., payment of any unpaid commissions, chargebacks accruing in the future, any installation issues under the sales model, etc.)] To make this transition as easy as possible for our dealers, we expect that the new agreement will be available online in the next few days for your review and acceptance. Once the new agreements are available, when you log onto retailer.DIRECTV.com, you will be sent to the online agreement that is applicable to you. For your convenience, you may continue to go on to the dealer website without accepting the new contract, but be advised that you will be directed to the agreement each time you log on until you have agreed, accepted and approved. Please note that you have the right to review the terms of the new agreement before accepting it, but if the new agreement is not approved by the principal/owner of record by February 28, 2006, since your existing agreement will be terminated, you will no longer be able to continue as an authorized DIRECTV dealer after February 28, 2006.
By enabling all of our dealers to accept the agreement online, we ensure that our dealers have access to additional important information DIRECTV will post online in the future.
Page 3 of 5
Please note that on and after March 1, 2006, only hardware transactions under the Lease Program will be eligible for commission; any DIRECTV hardware sold by you will not be commissionable or subsidized in any manner or for any amounts whatsoever. All hardware subsidies will be subject to chargeback for sales made under the owned model. Further, under the new terms of the lease agreement, DIRECTV retailers are required to extend the lease offers to customers based on DIRECTV’s standardized lease transactions; see “Consumer Offers: Lease Transactions” in the online contract for full details. Dealers may not deviate from these lease transaction fees in any way since the lease offers are set and established by DIRECTV as the lessor.
We are excited to offer this new program to our customers and know that, with your help, it will be a success! If you have any questions, please contact your DIRECTV Area Sales Manager, Distributor Sales Representative, or DIRECTV Retail Services at 1-800-323-1994, or via email at RetailServices@DIRECTV.com.
Best Regards,
DIRECTV, Inc.
LSE_0106
Page 4 of 5
Q&A About the DIRECTV Lease Program
1. Q: Why is DIRECTV migrating from a hardware purchase model to a Lease Program?
A: Some of the most important reasons DIRECTV is migrating to the Lease Program are:
• To maintain a competitive offer in the market place by providing
DIRECTV customers a convenient receiver replacement program.
• Increase retention of DIRECTV customers, which should help reduce chargebacks.
2. Q: How is my commission affected by the Lease Program?
A: With the new Lease Program going into effect on March 1, 2006, dealers are paid commission only on those DIRECTV customers acquired under the terms of the new Lease Program. Some dealers may still sell receivers to customers, if they wish, but they will not be paid on those sales and the hardware will be in no way subsidized.
3. Q: How are mirroring fees impacted with the new Lease Program?
A: The bottom line is that a customer’s monthly bill will be nominally impacted. Although the term “mirroring fees” will go away in the Lease Program, customers will be subject to “monthly lease fees.” As with mirroring fees, the new “lease fees” are waived for the customer’s first receiver (lease fees are waived for the first receivers for new customers only; existing customers are subject to lease fees for any additional receivers they may acquire).
4. Q: Under the current model, I can currently charge whatever I want for the hardware as long as I absorb the cost if I offer it at lower than what is subsidized by DIRECTV; will this continue?
A: No. DIRECTV will be the party who will lease the equipment to the customers under the lease program. Accordingly, DIRECTV controls, sets and establishes the terms of the new lease program, including the lease fees charged for equipment. If you deviate in any way from the lease program as established by DIRECTV, including the standardized lease fees, you will be subject to immediate termination, without an opportunity to cure.
5. Q: Will the customer be getting used boxes with the Lease Program?
A: Through the Lease Program, there is the possibility that customers may get reconditioned equipment. Please keep in mind that DIRECTV will take precaution to ensure that any reconditioned equipment leased to customers is in “like new condition.” Of course, whether the equipment is new or reconditioned, it is covered by DIRECTV’s receiver replacement program.
6. Q: Why do I need to sign a new contract/agreement with DIRECTV?
A: Because the primary business model that DIRECTV works with its dealers on is changing, we need to have a new contract in place to support the new Lease Program. This will also allow us to provide contractual amendments to you online in the future!
7. Q: What happens if I sell (not lease) my customer a DIRECTV system after 2/28/06?
A: While you are not prohibited from selling DIRECTV hardware at prices established by you, please be advised that after 2/28/06, you will not be eligible to receive any commissions or subsidies for sold receivers. Accordingly, you will be subject to chargebacks for any subsidies or commissions you may have received, including any amounts under the Buy-Down Program. Please also note that only leased receivers will be eligible for ODU/Multi-Switch Reimbursement and commission.
Page 5 of 5
8. Q: Do Early Cancellation Fees or Differentiated Offer Fees change with lease?
A: No; both of these fees will be generally handled in the same manner as they currently are.
9. Q: With the lease model, will new customers now have to pay for standard, professional installation?
A: A: No! New customers will continue to get standard professional installation for free. In fact the great news is that with the lease model, both new and existing customers are eligible for free standard installation.
10. Q: How are existing customers affected by the lease model?
A: They aren’t. Existing customers who have already purchased hardware will continue to own their hardware. New customers who sign up for DIRECTV will be leasing the equipment. However, if an existing customer wishes to add additional receivers to what they already own on or after March 1, 2006, the newly acquired receivers will be under the terms of the lease model and the customer will be considered a mixed household, in which case they will be charged a lease fee on their leased equipment.
11. Q: How does my advertising need to change in order to promote the new lease model?
A: There will be changes reflected in all advertising once we migrate over to the lease model on March 1, 2006. We will be providing you ad slicks for the upcoming Q1 offer, which reflects the new hardware positioning and advertises our great, new programming offer that starts March 1.
Advertisements will continue to promote the free standard, professional installation but the equipment will now be leased, not owned. You will need to update the legal block to reflect the new terms of the lease, and, as always, all advertising must be sent through DIRECTV for approval.
12. Q: How does the Lease Program affect a customer’s experience at my store?
A: The customer experience will not change in regards to coming to you to acquire the best and latest DIRECTV hardware. The customer still comes to you for their DIRECTV system, they are credit scored, and you provide them with the hardware they need to access DIRECTV programming! The only thing that changes is the terms of the hardware, which will now be leased instead of owned. Upon cancellation/disconnection/termination of their DIRECTV account, they are required to return the equipment per the terms of the Equipment Lease Addendum, which replaces the old programming commitment agreement. If they do so before they have satisfied the programming commitment, they will also be subject to the early cancellation fees. The terms of ownership change, but accessing the premier multi-channel provider remains the same! DIRECTV is making it easier than ever for customers to get the most up-to-date, advanced hardware on the market through its dealers. | |
 DJPremium
join:2001-06-13
Columbus, GA
 ·Knology
| As an installer, I have mixed feelings about this. All in all, though, this sounds better than what they have now.
The only big gripe I have with the new program is that customers will now be completely locked into a lease, where they *must* pay a prorated cancellation fee should they want to cancel services early AND return the equipment. Right now if a customer wants to cancel their services before the 1 or 2 year agreement ends, they can return the equipment without paying the prorated cancellation fee. That could be a problem for some potential customers, because I've had some customers in the past who would've cancelled their installation had they not had a free or low-cost option of cancelling their DirecTV service early (sending back the equipment).
--
Mediacom Online: $45.95 5000/256. | |
 Irish SharkPlay Like A Champion TodayPremium,MVM
join:2000-07-29
Las Vegas, NV
kudos:3 | reply to User0101
How does this impact the new 5 LNB dishes and MPEG4 receivers for existing customers?
When this becomes available in your market area, do you now lease this new equipment? What about the old dish and receivers?
--
"You can observe a lot by watching". Yogi Berra | |
DJPremium
join:2001-06-13
Columbus, GA Reviews:
·Knology
| If you purchase(d) the equipment before 3/1, then you will continue to own the equipment. For existing customers, you will continue to own the equipment you already have, but any new equipment aquired after 3/1 will be leased.
So...if you're an existing customer with three receivers, and you add a fourth receiver after 3/1, you'll own three boxes and be leasing the fourth. In other words, you own the first three but the fourth one will always belong to DirecTV.
--
Mediacom Online: $45.95 5000/256. | | |
|
 dbmavenThere's no shortagePremium,Mod
join:1999-10-26
Sty in Sky
kudos:2
 ·VOIPo
·Optimum Online
Host:
Filesharing Software
No, I Will Not Fix..
Road Runner
Bright House Netwo..
Computer Hardware ..
| Re: [DIRECTV] Directv Going To Lease Only On 3/1/0 The salient question here, if I can translate for Irish Shark  :
I own an HD Receiver and 3LNB dish.
DirecTV has indicated for over a year that when the MPEG4 capability necessitates a receiver/dish replacement, it will be a no-charge swap.
Presuming that this is still true, do I own the new MPEG4 capable HD receiver, since it was a swap for the old one I owned? Or does DirecTV own it?
--
"Q: When will it be done? A: When pigs fly! " | |
 scoobyPremium
join:2001-05-01
Schaumburg, IL
kudos:1 | said by dbmaven:The salient question here, if I can translate for Irish Shark : I own an HD Receiver and 3LNB dish. DirecTV has indicated for over a year that when the MPEG4 capability necessitates a receiver/dish replacement, it will be a no-charge swap. Presuming that this is still true, do I own the new MPEG4 capable HD receiver, since it was a swap for the old one I owned? Or does DirecTV own it? If you do the swap before 3/1 it will be yours. After 3/1 it will be theirs and they will probably let you keep your owned equipment. | |
| reply to User0101
Re: [DIRECTV] Directv Going To Lease Only On 3/1/06 The press release mentions that purchase option is still availalbe for those who want it | |
Irish SharkPlay Like A Champion TodayPremium,MVM
join:2000-07-29
Las Vegas, NV
kudos:3 | But who will see it to you? They say that all commissions, discounts, etc... will no longer exist for purchased equipment.
-------------
This is making some sense. I had an issue the other week that required a tech visit. The guy at D* said that they would replace my existing dish. I asked if it would be the new 5 LNB one (even though we do not have the new service). He said yes. When the tech came out he had the same dish that I have now. I asked about the 5 LNB dish that D* said they were going give me to replace the existing one. The tech does a back flip and say says that he does not have one on the truck. So go back and get one from the shop. Nope, none in the shop either. Also, he has no idea on how to hook it up since they have not had any training yet on the new dish.
Seems to me that the D* contractor did not want to part with the new dish since he can collect more $$$ after 3/1/06.
And, yes dbmaven it has to do with the "free" swap of equipment which D* allegedly said they were going to do.
I think they looked at the cost of doing this and the numbers are staggering. So let's introduce a new lease program to stop the bleeding. That's my cut.
--
"You can observe a lot by watching". Yogi Berra | |
dbmavenThere's no shortagePremium,Mod
join:1999-10-26
Sty in Sky
kudos:2 Reviews:
·VOIPo
·Optimum Online
Host:
Filesharing Software
No, I Will Not Fix..
Road Runner
Bright House Netwo..
Computer Hardware ..
| Re: [DIRECTV] Directv Going To Lease Only On 3/1/0 I guess we'll find out.
If they think they're replacing my HD receiver with a new one because they made the switch to MPEG4, and they're going to charge me a lease fee....
....well, let's just say that they've got another think coming...
I think I'll call up today and get a second regular DVR unit, so that it's mine before the 3/1 cutoff.
--
"Q: When will it be done? A: When pigs fly! " | |
Irish SharkPlay Like A Champion TodayPremium,MVM
join:2000-07-29
Las Vegas, NV
kudos:3 | I got that maintenance plan with D* ... Ummm, wonder if I can get the equipment swapped out for free under that?
--
"You can observe a lot by watching". Yogi Berra | |
scoobyPremium
join:2001-05-01
Schaumburg, IL
kudos:1 | said by Irish Shark:I got that maintenance plan with D* ... Ummm, wonder if I can get the equipment swapped out for free under that? I would think you could as long as its an actual hardware failure. | |
 toups
join:2001-11-02
Boxborough, MA | This could be a way to increase the revenue stream by adding a lease cost to the normal programing costs.
Also, this might be related to the MPEG4 rollout for HDTV channels and HDTV recorders. By leasing the equipment, users may be less likely to upgrade the systems with larger drives or perform other hacks.
All in all, whatever the reason, I am sure it will be to the corporations benefit. | |
Reviews:
·Mediacom
| said by toups:All in all, whatever the reason, I am sure it will be to the corporations benefit. It always is, just like with any other company. It's not about the customers, it's about their money. | |
Irish SharkPlay Like A Champion TodayPremium,MVM
join:2000-07-29
Las Vegas, NV
kudos:3 | reply to scooby
said by scooby:said by Irish Shark:I got that maintenance plan with D* ... Ummm, wonder if I can get the equipment swapped out for free under that? I would think you could as long as its an actual hardware failure. I was referring to the 5 LNB dish and the new MPEG4 receivers.
--
"You can observe a lot by watching". Yogi Berra | |
 ff1324Everybody Goes HomePremium
join:2002-08-24
On Four Day | reply to User0101
So as an E* customer thinking about switching to D* (don't ask why), would it benefit me to switch before 3/1 or not? Why?
--
The funny thing about firemen...night and day they're always firemen | |
| ff1324
As a long time D* Subscriber and also a former Satellite Installer I believe you would benefit most as a new customer if you waiting until after the start of the lease program. Perhaps a month or so afterworlds. Let me explain why...
While D* has been preparing for this event in their Call Centers you will undoubtedly encounter those CSRs who are not as familiar with the program as they should be. As a result, you may not get the benefit of "type" of install you need. Whether it be an HD System or a PVR HD System or etc.
By waiting, say, just one month you give yourself a better opportunity for D* to become more accustomed to the change themselves. I know this sounds a bit silly being that it's such a huge organization but there is some merit to this. You also lend yourself over to fact that Installers will have become more familiar with the systems and equipment by then. This will give your "Professional Installation" a better opportunity to be just that, professional.
The new 5 LNB dishes are wonderful and simply amazing when you think about what they must accomplish to pull compression streams off of 5 individual satellites. They are large, think of the size of the 3 LNB "SuperDish".
You should expect 4 RG-6 cables coming off of the new 5 LNB system into where the multi-switch will be housed. With the size of the dish, the amount of cables required for all satellite feeds, do yourself a favor and search around the South-Eastern portions of your home for areas that you believe are optimal for dish placement. Be as prepared as possible for your Installer.
Most important though, if you have what would be considered non-standard installation issues make sure these are documented from the first initial call with D* and then with the Installer should you have the opportunity to speak with them beforehand.
Being that you're already an E* subscriber a lot of the installation issues could already be covered though since the D* installer can possibly use existing cable runs and etc.
Good luck. Post pictures of your new setup to help other members too if you have the opportunity.
User0101 | |
| reply to User0101
Re: [DIRECTV] Directv Going To Lease Only On 3/1/06 In an existing customer looking to upgrade my equipment. Should I buy the stuff before the 3/1 cutoff date or go for the lease deal?
If I buy a DVR, do I have to pay a subscription fee to be able to record with it? Can I get recomendations for standard and DVR recievers? What are R10 and R15 recievers?
Yeah,I'm a PAIN in da ASS  | |
 jjgb10Premium
join:2004-11-24
Kasson, MN | reply to User0101
Does this mean if we just got Directv and we have a second receiver that we pay $4.99 for, after March 1st, we don't have to pay the $4.99? Thanks | |
|
