Ken:
If you take a look at the market, current cable TV customers are by far the biggest potential market for DBS. DISH Network offers programming packages at about 2/3rds of the typical cable TV cost. Also, people only get one bill for basics and premiums. That's huge. If you take a look at basics plus HBO, DISH runs $35/mo. vs $48.95 for Directv's Total Choice package plus USSB's essentials plus HBO.
Also, DTV has all those pay-per-views, but their buy rate is only 2 movies per month per sub. That's why they were discontinuing their PPV coupon deal. Premium programming is not only more profitable than PPV, but people buy more of it. And, with DISH's 2nd sat up and running (service additions start nov. 1) they have all the capacity they need. Let's face it, without DTV, USSB is nothing. DTV will get its share as the market leader, and USSB can ride those coattails for a while, but whenever their programming contracts with the premiums expire, DTV will snap those deals up whatever the price. At that point, maybe USSB is in the PPV business, but their long-term outlook (barring them launching a competing service at another orbital slot where they have freq's but no satellites) is not promising. DISH, on the other hand, has all the programming they need, and is better than DSS at competing with cable TV.
In short, buy DISH now before people find out what they're really up to.
NPD |
