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2000 Consumer Electronics Show

READ ALL ABOUT IT!



PAGE 1

EchoStar Pitches Free Systems to Cable Subscribers
EchoStar Communications yesterday unveiled a plan to take aim again at its favorite target—cable companies. EchoStar now is offering free reception systems to cable subscribers who commit to paying at least $39.98 per month for programming for one year. Cable customers who show a copy of their cable bill to an EchoStar retailer and make the programming commitment will be given model 3720 or 3822 receivers valued at $199. The promotion, which includes free professional installation, runs through March 31. EchoStar also is offering $199 rebates to non-cable customers after they make their first payments on one-year commitments to buying at least $39.98 per month for programming. That offer also includes free installation and expires March 31. EchoStar also said it would offer free installations for all new system sales between now and March 31. EchoStar Chairman Charlie Ergen said that under the new program the company would be spending about $100 more to acquire each customer than its typical $300 subscriber acquisition cost. EchoStar has launched a print and radio campaign to promote the new offers, with TV advertisements planned to follow in the next two weeks. The ads are take-offs on presidential campaign spots and ask consumers to “Cast a Vote for DISH Network.” In a further slam against cable, EchoStar also is running newspaper ads in Arizona and the Washington area encouraging Cox Communications cable customers to switch to EchoStar’s DISH Network DBS service. The campaign is targeted at customers living in markets where Cox no longer was able to carry Fox broadcast stations because the companies had not been able to agree to a new retransmission consent agreement. The advertisements carry the tagline, “Drop Cox, Not Fox.” But late yesterday, Fox and Cox announced a retransmission consent agreement. Whether EchoStar still planned on running its ads could not be ascertained at press time.

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