[opendtv] Re: Barriers eroding to LCD TV adoption
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 4 Aug 2004 10:03:47 -0400
Craig Birkmaier wrote:
> 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!
This doesn't make any sense.
If you can buy a receiver at WalMart for $199, without getting any
USDTV package with it, the please explain why USDTV or the
manufacturer would willingly take a loss on each unit.
Is this another example of making up the loss with volume of
sales?
> Hisense sells the receivers to USDTV for about $150 - THEY ARE
> SUBSIDIZING THE REST.
So what? That's a different discussion. Obviously in that case,
USDTV gets back the subsciption fees and makes up the difference
over time. Like any other subscription service, they make you
pregnant first.
> 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.
What monthly fees? If I buy a unit outright with no USDTV package,
what monthly fees am I paying?
Bert
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