The word “contract” is not something most consumers like. People don’t like being tied down to a particular service or company for an extended period of time because they fear something might go wrong and then they will be stuck. This is certainly true with cable and satellite TV providers. While satellite companies have required contracts for years, cable television companies have just started to get into the contract game. Most cable contracts come with an incentive though, as you can get a cash card or and iPod Touch with some of the Xfinity cable TV contracts. But what about the contract required with a Dish Network packge?
First it is a good idea to look at it from the perspective of the company. Dish Network packages come with certain perks for the consumer, so you have to understand that the company is going to ask for something in return. They offer a discounted rate on the package for one year along with free installation and equipment. The labor involved in setting you up with satellite service is usually a few hundred dollars all by itself, and they haven’t made a dime off of you until the first bill comes in the mail.
That is why the contract with Dish Network is for two years. The first year they give you $15 off of any package, meaning an additional $180 in savings for the customer. The second year they finally start collecting the full rate on your subscription. Their hope of course is that you will really like the service, and thus will stay for five or ten years. Then they really start to turn a good profit as the dish and equipment costs are fully recouped and they are just making a profit on the markup. Programming fees have to be paid by Dish Network month in and month out as well, so they don’t keep all of the money you send them for your package.
Tags: dish network