Mike,
Revenues should get an even bigger bump. Prices just increased, with Top 60 now $29, and superstations $5 extra. Also, the multichannels start at $11 (I'm not happy about that one). Used to be you could get all the movie channels for $25, but now its something like $50. NEW, sports package (22 channels) is $5, and they are offering Playboy for something like $13 a month.
On the DISH promotions channel, the president explains all of this in excellent fashion, noting the new channels you'll get for your money (STARZ 1, STARZ 2, ENCORE, and a new showtime channel). Also, he takes a good stab at gov. regulators for the superstation rate increase, complete with a call to contact your congressman (nothing beats blaming the government for higher prices). They also present a good overview of qualifications to receive broadcast national feeds ($5-$8).
This all takes place in April-May. Should have an immediate an substantial impact on revenue number for 1998 Q2. I've also noticed that the price wars have finally settled down, along with less advertising - no doubts in anticipation for DISH's next anti-cable local channel promotion We may see profitability earlier than I thought, and more in line with your predictions.
John |
