Star Choice satellite tv - Multi-Receiver Plan - price increase

# 4 for February 19, 2002

Complaints.com received the following e-message on February 18, 2002:

From: Fred Kahn [Email User]

Star Choice satellite tv - Multi-Receiver Plan - price increase

Type your detailed complaint here. Include the name of the company and the brand name of the product or service.

Fred Kahn

Gloucester, Ontario

K1V 1R5

613-822-4401 February13, 2001 Star Choice

2398 Route 102 Hwy,

Lincoln, NB

E3B 7G1

Attention: Michael Kaumeyer, Vice President, Marketing Subject: Your letter dated February 5, 2001 - “Introducing the Star Choice Multi-Receiver Plan.”

Dear Mr. Kaumeyer,

I am totally outraged at Star Choice’s decision to charge each one of their customers who have multiple receivers an additional $4.99 per month. When I called your customer service department this evening to express my concern I was told by one of your employees “off the record” that they have been inundated with complaints regarding this issue. The lady I was talking to actually told me that she was instructed by her manager to…. “

As quickly as possible move through these phone calls and offer to cancel anyone’s account if they disagreed with these new charges. I called back three additional times and each time I was told … “Would you like me to cancel your account?” I guess part of Star Choices strategy in this well planned out money grab campaign was to just treat their customers as a numbers game.

Only few customers will make a fuss and regardless of how it’ s done Star Choice will come out on top. Your claim that this charge is intended to reflect the real costs of providing service to multiple receivers is absolute nonsense. The requirement for multiple receivers is a huge draw back over traditional cable services and a necessity to view separate channels at each TV viewing location. So I invested almost $1,100 dollars for additional receivers and now you dare tell me that I will be charged extra to use them.

I can honestly say this is one of the most outrageous scams I have ever experienced. It is these types of situations that reinforce the intervention of government policies such as within the telecom and cable industry. This was a very well planned out marketing campaign to totally take advantage of your loyal customers. Then you have the audacity to attempt to black mail your customers into upgrading their satellite service to your most expensive package for $74.99 per month.

And only then will you waive this extra $4.99 monthly charge. Let me make it perfectly clear that $4.99 per month will have no effect on my personal finances. What bothers me is Star Choice’s deceit in presenting this to their customers. Boy, I can’t wait until the cable companies rip you guys a new breathing location in their next advertising campaign.

Lets do a little math here:

Assuming you have approximately 650,000 current subscribers. I will make an assumption that 30% of your subscribers possibly more own multiple receivers who will now have to pay an additional $4.99 per month. This means that Star Choice, without having to increase their customer base by even one subscriber will now have a new stream of revenue of over $975,000 dollars per month! Or over $11.7 Million dollars per year. How can you possibly suggest that this is nothing more then a huge money grab? Ok, so let’s deduct the amount that Star Choice may have to now pay out for warranty of these receivers.

Is this going to honestly cost Star Choice over $11 million dollars a year, not likely but will create a great bottom line profit. Of course there is still a factory warranty on all these receivers, which completely limits any liability on Star Choices behalf for at least a one-year period. So why would I want to pay Star Choice for the first year in any event if I am covered under the factory warranty.

You people must think all consumers are idiots. Mr. Kaumeyer, I may only be one lousy customer of yours but let me tell you that you haven’t pulled the wool over my eyes. It has been proven time and time again that this type of “Forced Negative Marketing Campaign will do nothing more then alienate your customers and ultimately reduce your companies revenue. Sincerely,

Fred Kahn cc. Ottawa Citizen, Action Line.

cc: Better Business Bureau of Ottawa Carelton