Consumer electronics retailers are coping with shrinking profit margins on satellite television dishes by promoting sales of TV sets, videocassette recorders, sound systems and other ancillary equipment. The stores also receive revenue from satellite TV programming companies for selling programming subscriptions. Retail sales of satellite dishes fell to $750 million in 1996 from $1 billion in 1995, as declining prices offset a jump in unit sales.

NEW YORK -- Retailers of satellite TV systems are combatting margin erosion by emphasizing sales of the total package: programming, large screen TVs, hi-fi VCRs and furniture.

Satellite TV systems -- the pizza-sized dishes that can deliver up ...