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Don’t get too comfortable with your low, low price on that DISH Network package you have. During a call with reporters earlier this week, DISH Network CEO Charlie Ergen said that cable companies are really hitting the No.2 satellite TV provider with large license fee increases. Ergen was frank and revealed that DISH may be passing on the expenses to subscribers.
“I think we have room to do it later in the year. It depends on getting ourselves in a position to do that,” says Ergen regarding fee increases. “I think we’re under-indexed [on rates for programming packages] compared to the rest of the industry.” In laymen’s speak: DISH customers have had it good for too long.
Why have DISH’s TV packages been so low? Ergen blames the war with DirecTV, who has stumbled in fourth quarter earnings. The two satellite giants have engaged in discounting battles that have entranced consumers but left both companies feeling the pinch.
