The True Cost of Owning a Satellite TV System

The True Cost of Owning a Satellite TV System:

With satellite TV system providers aggressively recruiting new customers, a new satellite TV system setup is likely to cost little to nothing out of pocket.  Free equipment and installation offers run rampant through this competitive industry, and customers pocket the profits.  As with anything that seems too good to be true, however, consumers need to examine the fine print in order to determine the true cost of owning a satellite TV system.

Here are some of the costs associated with using a satellite TV system, plus what to look out for before signing off on a contract.

•    Installation – Standard equipment installation for a satellite TV system is usually free.  Sometimes you’ll need to have trees removed or will need to have your home wiring upgraded, which may be beyond the scope of the free offer.

•    Standard equipment – Standard equipment usually refers to the satellite dish, the receiver, and other necessary components.  Most of the time, one to four receivers will be included with the programming package, while additional receivers may cost up to $5 per month.  You’ll need a receiver for each television.

•    Equipment – When you sign up for HD or DVR service, expect to pay another $5-$7 per month for each unit.

•    Programming costs – Packages may include hundreds of channels, and can range from $20 to $100 or more per month.  Be wary of promotional pricing.  What may be a great deal for three months can become burdensome for the remainder of your 12 to 24 month contract, so be sure to ask what the regular price will be.

•    Premium packages – Unlike basic packages, which tend to be offered bundled and tailored for segments of the general population, premium channels are offered a la carte.  HBO, Showtime, Starz, and Cinemax are among the most popular options, but at $5-$20 per channel package each month, they add up quickly.  Sports fans revel in having viewing access to every game every day, but the privilege will cost them $200 or more per sport per season.

•    Taxes and fees – Check your bill carefully for junk charges like billing fees or processing fees and ask the satellite TV system provider to explain them fully.  Taxes are usually non-negotiable and vary by locality.

Before making a commitment to one satellite TV system provider, it can be helpful to go through the online purchase system through – but not including – the final checkout and confirmation.  Because the law requires full disclosure, this is one of the best ways to see the bottom line (minus the verbal sales pitch) before you have to sign on it.