[opendtv] Re: ATSC STBs

On 24-Feb-06, at 2:54 PM, Manfredi, Albert E wrote:

> It's really hard for me to judge whether that market is saturated yet.
> The reason being, all I see is how these STBs, and other OTA items,  
> keep
> selling out and not being replaced. Not just in the stores themselves,
> but also in the web sites of these stores.

This is simply because the item is released at $500, nobody buys it,  
then it hits the liquidator circuit at a price that seriously burns  
the original importer.  For the liquidator and the retailer, there is  
profit.  But without the importer, there is no product to begin with.

So in the end, the product sells, but the selling price is nowhere  
near the original retail...the retail that would have made everybody  
in the distribution chain some money.  Do you think the original  
importer of those Accurian boxes made a profit?

> This includes antennas and
> antenna distribution amps (with UHF band). You need to go to  
> specialized
> web sites to find this stuff anymore. This wasn't the case until very
> recently.

Until very recently?  Where could you get an outdoor Yagi 3 years  
ago?  Certainly not Best Buy.

There was a spike in demand to be sure, but not enough to add a  
significant amount of manufacturing capacity and to dramatically  
increase the size of the distribution channel.  This kind of product  
has been distributed by smaller specialist distributors for years  
now, and the bigger CE retailers aren't signed up (and won't sign up)  
with these smaller distributors.

> But why should retailers and CE vendors only care about somone's  
> idea of
> a "best choice?" What's wrong with plain old choice, as you get in any
> other CE product?

"Best choice" is easier to sell.  Why explain all the ins and outs of  
off-air reception when you can send them home with a shiny new  
digital cable or satellite box in a flash?

If they sell a digital cable box, it's plug and play.  If it's a  
satellite system, someone will come and install the dish and wiring  
for the customer.  So who's going to install the antenna and wiring  
for an ATSC STB?

> Craig searches left and right to find a "bad guy" to blame, much as I
> do, and IMO is unconvincing in his explanations.

There is not "bad guy".  It's simple supply and demand economics.

So again I ask... who's the target customer is for an ATSC STB??

 
 
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