Sunday 27 July 2008

Cable Television Unable To Keep Up With Dish Network's Low Prices

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A great measure of a company's efficiency is how low they can keep their prices while still doing okay as a business. Companies like WalMart proved to the world that keeping prices extremely low while making large profits and being able to grow was possible. When it comes to the world of television, Dish Network is the company that is proving this fact. Cable television companies might be upgrading their level of channel selection and starting to offer some digital television channels, but nobody would ever associate cable television with low prices. However, when given the phrases low prices and television service, most people would think of satellite television. This is one of the reasons that Dish Network is doing so well. Everybody loves a bargain, especially when the product is even better than the one that costs more. And this is the case with satellite television. Cable television has a product that offers fewer channels, poorer customer service, and less advanced technology for high prices. Dish Network, however offers a product that has a huge array of channels, award-winning customer service, and extremely advanced technology.
A great measure of a company's efficiency is how low they can keep their prices while still doing okay as a business. Companies like WalMart proved to the world that keeping prices extremely low while making large profits and being able to grow was possible. When it comes to the world of television, Dish Network is the company that is proving this fact. Cable television companies might be upgrading their level of channel selection and starting to offer some digital television channels, but nobody would ever associate cable television with low prices. However, when given the phrases low prices and television service, most people would think of satellite television. This is one of the reasons that Dish Network is doing so well. Everybody loves a bargain, especially when the product is even better than the one that costs more. And this is the case with satellite television. Cable television has a product that offers fewer channels, poorer customer service, and less advanced technology for high prices. Dish Network, however offers a product that has a huge array of channels, award-winning customer service, and extremely advanced technology.

Why does cable television cost so much? Some of it is business practices. Let's face it, cable television is composed of an array of providers that each service a region of the country. This means each provider has a relatively small segment of the population and cannot save money by using economies of scale. This term refers to saving money by increasing a consumer base because it is almost always possible to produce a product or service for less per customer when you are offering it to millions of customers. With satellite television, however, the companies can take advantage of economies of scale because of the national base of satellite television. By using satellites to deliver programming, satellite TV companies can offer programming to people all over the country and not be confined to a certain region. This also saves on administrative costs. One well-run, efficient company can offer lower prices that a multitude of disjointed and inefficient companies spread throughout the country.

Of course, business practices aren't the only reason that cable companies charge more than satellite TV companies. Another big reason is that the infrastructure of cable is not as flexible as that of satellite TV. With Dish Network's system, making upgrades to allow for higher tech programming or other advances can be as simple as sending another satellite into orbit or offering higher tech satellite dishes for customers to use. Even though sending a satellite into orbit requires a lot of planning and a fairly large investment, it is nowhere near as complicated as trying to replace or upgrade an entire underground system of cables. When cable companies need to upgrade their infrastructure, they have to rip up entire roads in order to lay down new lines. The amount of manpower and other costs necessary to make these upgrades is staggering. Of course, the price increases for cable service in the past years have also been staggering. And, with future technologies the process will have to be repeated again at even greater cost.

The saying you get what you pay for does not apply to television service. This is the rare case where paying less for satellite TV service will get you a lot better service and more options. Cable television needs to charge a lot to pay for inefficient business practices and an inflexible infrastructure, but Dish Network has the advantage of more advanced technology


www.1staudiovisual.com.au

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