vic asked in Consumer ElectronicsTiVO & DVRs · 7 months ago

How come dish companies have contracts but cable never does?

Dish would get more customers if the got rid of 2 year contracts

5 Answers

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  • 6 months ago

    Bullshit

  • 6 months ago

    Cable TV has always had contracts. Don't know where you've been.

    If your contract ends your price simply goes to the monthly rate. That's the case for both cable and satellite.

    If you don't mind sticking with a company for 1-2 years you can use the contracts to your advantage. When your contract is up, or is about to be up, you can call the company and renegotiate. Often times you can even get the "New Customer Only" deal if you tell them you will cancel the service entirely. You can even get upgraded hardware too. Just ask.

  • P
    Lv 7
    7 months ago

    When the satellite services started out you had to buy the equipment and pay for an install to the tune of several hundred dollars. People did not like paying for it so they switched to model where install\equipment was included in the subscription. The cost to install new satellite tv equipment is significant especially since the satellite companies generally only pay their contractors per install. They want to make sure they can recover their costs by locking you in for a year or two. If you paid for your own install (or did it yourself) you can definitely go month to month with satellite. Regardless every cable operator I've dealt with forces you to sign multiyear contracts to get their best rate so that could just be your particular cable operator. These companies are looking for long term customers, not someone who might cancel after 6 months, which would cost them more money than that customer is worth. Not everyone has contract phobia, it really isn't a big deal to me to be locked into something for 2 years if they give me a good deal.

  • 7 months ago

    If they didn't, they wouldn't make enough money.

    I have never been a customer of a satellite service,

    and I have not been a cable customer since May of 2002.

    That works for me.

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  • 7 months ago

    Averaged out, it costs them several hundred dollars to acquire each customer. Imagine the churn rate if people could leave any time they wanted after seeing what satellite TV was really like. Even if new prospects are turned off by the policy, the ones that stick around are valuable in the long run and keep bringing in money every month.

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