George Mannes

Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW

EchoStar Launches Price Hike

01/05/05 - 01:17 PM EST

George Mannes

EchoStar DISH is playing catch-up on prices.

Starting Feb. 1, the operator of the Dish Network satellite service will raise prices on major programming packages by as much as 8%. The changes appear to outpace recent annual increases rolled out by major cable operators.

EchoStar, which has long labored to position itself as the cheaper alternative to cable TV, says the new prices reflect rising programming costs. The boost illustrates how EchoStar and fellow satellite operator DirecTV DTV continue to fight with cable operators for subscribers -- without using price cuts as a weapon.

"Investors have been fretting over the prospect of a price war in the multichannel industry for the last 12 to 18 months," says Sanford Bernstein analyst Craig Moffett. "And they keep being surprised by the fact that it isn't materializing."

All Over the Map

The Dish Network price increases fall unevenly across EchoStar's customers and programming packages, making the exact impact of the increase somewhat hard to pin down.

The monthly fee for what Moffett calls EchoStar's most heavily promoted introductory tier -- America's Top 60 package, accompanied by a side order of local channels where available -- is rising $2, or 6.7%, to $31.99. Other "America's Top" package monthly fees are rising, too; for example, the price of the America's Top 180 package with local channels is rising $3, or 6%, to $52.99. Packages without local channels, says Moffett, will rise as much as 8%.

But other programming packages have no price increases, notes EchoStar spokesman Steve Caulk, including EchoStar's Latino packages and virtually all international programming packages.

EchoStar calculates the average price increase at 4.3%, based in part on the $56.11 in average monthly revenue per subscriber that the company reported for the third quarter of 2004. The company also says the number is weighted to reflect customers' payment for services that aren't being affected by rate increases.

Previous «
1 2

George Mannes


11/02/04
DirecTV Splurging for Sub Growth

The company posts its second straight big gain on the user rolls, but it comes at a price.


09/29/04
Comcast Says Video on Demand Is Rolling

It's only a beginning, the cable operator stresses, but clearly viewers want more personalized service.



05/19/08
Cramer on Top Searched Stocks: Yahoo!

Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.


05/17/08
Jim Cramer's Best Blogs

Catch up on his thinking on the hottest topics of the past week.


04/26/08
Coming Week: Make or Break

Investors will have to deal with a Fed meeting and another flood of earnings and economic data.


05/19/08
Top Rocket Stocks: Ensco

Ensco International and Echelon have the potential to move higher in coming days.


04/28/08
Monday's Analysts' Upgrades, Downgrades

See who made what calls.


05/19/08
Telecom Giants See a Savior in Video

The addition of video is helping telecom companies compete against cable and satellite companies.


05/19/08
Contract Expiration Tempers Oil's Rise

The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.


05/19/08
Analysts' Upgrades, Downgrades: Amazon

See who made what calls.


Your Recent Quotes: Quote Up0 | Quote Down0
Dow S&P 500 NASDAQ
Oil*
Gold
10 Yr
0.00%
%
%
%
Data delayed 20 min
Sign up for our FREE newsletters now.

Keep on top of the market and the critical information you need to make more profitable investing decisions.

  • Cramer's Daily Booyah!
  • Before the Bell

Privacy Policy

See All Free Newsletters

Premium Stock Ideas
Access Action Alerts Plus to find out Cramer’s latest picks now!