[opendtv] Re: Barriers eroding to LCD TV adoption

  • From: Tom Barry <trbarry@xxxxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Wed, 04 Aug 2004 07:42:53 -0400

Sorry Craig but you are completely wrong on this one.  It IS sold at 
retail today.  I purchased a USDTV box at my local Walmart for $199 a 
couple weeks ago here in Jacksonville where (like most places) there is 
no USDTV service.  There was no requirement to sign up for anything.

I subsequently returned it but will likely purchase another once the Gen 
5 chip models arrive.

I have no idea of the manufacturers cost but a nationwide deal that 
loses the manufacturer $50 / unit seems unlikely.

That USDTV web page statement was said on AVS to be now obsolete.  I 
don't know why they haven't changed it but it supposedly applies only to 
the discounted box from USDTV, and certainly not my Walmart model.

- Tom


Craig Birkmaier wrote:
> At 5:56 PM -0400 8/3/04, John Shutt wrote:
> 
>>Perhaps USDTV has changed their policy?  This is on their website:
>>
>>http://www.usdtv.com/get_usdtv-subscription_details.php
>>
>>"Terms and Conditions:
>>A subscription to USDTV is required to receive any broadcast service with
>>the USDTV receiver. By subscribing to the USDTV service, the customer agrees
>>to a one-year service agreement of $19.95 per month for the base receiver
>>and $4.95 per month for each additional receiver. The monthly service fee
>>will be charged to the customer's credit card. If the customer terminates
>>the agreement prior to the 12-month term, a cancellation fee of $199.00 per
>>receiver will be charged. For complete Terms and Conditions review our
>>Residential Customer Agreement."
> 
> 
> You guys are mostly missing the bigger picture here.
> 
> The Hisense receivers are subsidized in TWO ways.
> 
> Hisense is selling the receivers to USDTV below cost. I have heard 
> estimates that the cost of manufacture is about $200 - THIS IS NOT A 
> RETAIL PRICE!
> 
> Hisense sells the receivers to USDTV for about $150 - THEY ARE 
> SUBSIDIZING THE REST.
> 
> The customer pays $99 at WalMart when they buy EACH receiver. In 
> order to use it they must then subscribe to the USDTV service. The 
> fees listed above in the Terms and Conditions are in addition to the 
> one time price paid for each receiver. The monthly fees cover several 
> things:
> 
> 1. Monthly subscription fees for the non broadcast channels that are 
> paid directly to the networks that are carried;
> 2. Retransmission consent fees for the local broadcast signals - this 
> may be the way that local broadcasters are compensated for the use of 
> their spectrum.
> 3.  Repayment of the subsidies for the receiver.
> 
> If the Hisense box were sold at retail today it would cost at least 
> $300 in order to cover manufacturing, distribution, sales and 
> marketing costs.
> 
> Regards
> Craig
> 
> And don't forget the royalties. About half of the $67 cost for a STB 
> is royalties, which do not get cheaper with volume or Moore's Law 
> driven cost reductions.
>  
>  
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