[opendtv] Re: Barriers eroding to LCD TV adoption

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 5 Aug 2004 10:10:51 -0400

Craig Birkmaier wrote:

> When USDTV signs up a customer at WalMart (in a market they serve)
> the cost to the customer is $99 for the box. So somebody is
> subsidizing the difference, and the cost to WalMart to sell the boxes
> (and their profit) must also be accounted for. That accounting is
> based on the total revenue from the subscriber for a one year
> committment:
>
> $99 for the box
> $19.95/month =3D $239.40
>
> Total $338.40

Craig, this is getting too silly. The total cost to a subscriber is
$338 for the first year. So? Are you implying by this that the box
costs that much?

I'll do even better. The cost for the first two years is $577.80.
Then I'll postulate that USDTV expects the average subscriber to
hold on to the same STB for two years at least, and I will conclude
that the actual cost of the box is almost $600. Man, these things
are expensive.

> The real question is whether Hisense is going to build the OTHER
> 300,000 units. My educated guess is that they will not make more
> boxes until they can integrate the new LG tuners this fall.
> Meanwhile, if you want a cheap - SUBSIDIZED - ATSC STB, this is the
> best deal in town...

Sounds very familiar. Sounds like the same dynamics that caused
Freeview boxes to become so cheap. A large inventory of idle ITV
boxes. This put pressure on the new DVB-T boxes built after that
inventory ran out.

Bert
 
 
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