Directv is poised to make another costly mistake:
cnnfn.com
Since Primestar's subscribers are month-to-month, DISH can have as many as they want (their costs are $700-800 less then DIRECTV's, so they can sweeten the deal), while DIRECTV pushes their breakeven out even farther (what will it be now, breakeven after 10,000,000 subs? Or are we past that already?).
Best of all for DISH, every box that DIRECTV diverts to converting a Primestar subscriber is one less box in the retail distribution chain.
I'm scratching my head trying to figure how DIRECTV plans on converting all these subs and abandoning the medium power platform. Or are they planning on operating Primestar as a going concern? With their 33% churn rate, they'd only have to do so for three years, but they'd have to pay for a lot more subs...
This is the best possible news for DISH, although the market won't see it that way. But when we look back 5 years from now, this blunder will be seen as the turning point that allowed DISH to become the market leader.
Just some thoughts...
Regards,
NOEL |
