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| Re: Increased Customer Revenus The HD Service has always been $9.99/month (I've had it since it first became available).
They moved 5 channels that have no SD equivalent to an "HD Extra" package for $4.99/month - HDNet Movies, MGM, Smithsonian, Universal and MHD (Music High Def - which has different programming from MTV). I'd bet that's a zero-sum game - for each person who added that package to keep those channels, another one dropped it because they don't watch them. I don't see any increased revenue there...
The key from a financial results perspective in comparing DirecTV and DISHNet is that the former has been deliberately targeting "more affluent" customers, while DISH has not. Thus, in recessionary times, DirecTV's business is less likely to feel the pinch. Current results would seem to indicate that it was/is a good strategy.
With higher revenue per subscriber, and roughly equal 'acquisition costs' (Dish spends about six dollars less than DirecTV), and lower total churn, it seems to be working.
Competition is good for the consumer, and I hope DISH rights the ship soon. |
