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DirecTV Sues Dish Over 'Why Pay More' Ad

I chose an article for this blog on digital and current TV (http://www.multichannel.com/article/448962-DirecTV_Sues_Dish_Over_Why_Pay_More_Ad.php), by Todd spangler. This article discusses current Cable and format issues with TV. Todd says in the article that "DirecTV is accusing satellite rival Dish Network of false advertising for a TV campaign that claims DirecTV charges substantially more for "the same programming."" So the article discusses how the pricing of TV and the way it is being delivered ha changed. In the past everyone would just pay for cable simply and you got what the cable company gave you, but now the cable companies have different offers with different prices and channels. In this article the debate over whether people are paying too much for cable, rather which company is the best to choose is a current issue in our society.

This is important and might impact the industry because with cable companies competing for prices and channels, consumers can either end up with better deals, such as paying less for TV, the industry however is being affected by the competition because companies are being forced to add more channels for less money and to get better HD coverage as well. In an expanding market, TV companies are having to meet the consumers needs because if they don’t then the consumers can chose to drop them as a provider and with the industry’s pressure for TVs to switch from analog to digital created a large buzz and forced many consumers to have need to switch to a major cable provider like DirectTV, etc, because they could the old TV signals were being dropped and the push t digital was implemented.

Dish's network was running adds on TV saying how they are cheaper and offer more channels than DirecTV's company and in the article this was seen as an unfair claim. It shows how the cable company competition for viewers or rather customers has become a major financial industry and fighting over who has the best deal is now a very current issue. Since cable companies are competing. Many issues arise now with cable companies using deceptive ways now to gain customers.

The audience sees all these ads, but needs to understand they themselves have a control over the TV companies, because they chose what cable company to be with and they have choice to not pick a certain cable provider if their prices get too high, for example if they want to have Verizon fios, but they raise there prices, then the consumer has the right to change to Dish. The audience has the power to make the cable companies popular and successful and can affect the overall prices. Now since man TV audiences want more channels, the struggle for who has the most channels and the most HD channels as well as lead to more competition.

In the book on pages 281-286 it talks about how competition as drove up the deals are being created for them to gain the complete coverage of the U.S. audience and that the major cable companies have gone up 30 percent in U.S. households and digital cable is the new and current future of TV. Cable companies are packaging telephone, wireless, and cable in packaged deal for cheaper and consumers are looking to get these deals, but the deals force the consumer to subscribe to one single provider, for example if a TV watcher wants Verizon Fios and wants the get their packaged deal with wireless high-speed internet and telephone, then they get that deal, but the rely on Verizon for everything then.

The cable companies, such as DirecTV, however are using unfair practices to draw more customers so the new demand for satellite cable and getting a good deal has become a new necessity in our Society and this has lead to greater cheating, Todd writes, "lawsuit against DirecTV filed in December 2009 by Washington Attorney General Rob McKenna alleging unfair sales practices." The greater need for more channels at a cheaper deal and for the TV watchers to get the best deals and cable has lead to a war among the big name cable companies and as this article shows it can get worse.