[opendtv] Re: How About Portable ATSC Receivers?

  • From: "John Willkie" <JohnWillkie@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 14 Apr 2005 10:54:22 -0700

that doesn't address my theory at all, but tries to develop a collateral
one.

If LG sells a box that it makes at retail, it makes everything above it's
cost to the wholesale price.  If LG licenses it's technology to others, they
make all that money, in exchange for sending maybe 3-5% of the sale price to
LG.

Which leads to more money to LG on a per-unit basis (the former.)

The fact that LG does not appear interested in much entering this business
right now could be laid to incompetence, bad planning, shortsightnedness,
economic conservatism, or just indecision.

Not a single one of those matters can effectively be addressed with
legislation.

John Willkie
----- Original Message ----- 
From: "John Shutt" <shuttj@xxxxxxxxx>
To: <opendtv@xxxxxxxxxxxxx>
Sent: Monday, April 04, 2005 9:57 AM
Subject: [opendtv] Re: How About Portable ATSC Receivers?


> John,
>
> Your 'theory' doesn't make any sense.  If I am manufacturer "S" and I have
> to pay LGE $30 in ATSC royalties, I must build that cost into the price I
> charge for my STB.  So my cost basis for my STB is higher by $30.
>
> If I am LGE, then I don't have to may myself $30 royalty.  So I can charge
a
> price for my STB similar to manufacturer "S", yet have a cost basis $30
> lower, and make more profit per STB than "S."  Or I can lower my price by
> $30, make the same margin per STB as "S" does, but because I gain more
> market share I still make more profit than "S.".  In either case, I am
more
> profitable than manufacturer "S" because I own the IP rights.
>
> The only way this falls apart is if LGE knows that getting it's royalty
> payment from manufacturer "S" is guaranteed profit with zero cost, while
> mass producing a proper STB is prohibitly expensive.  Since LGE has HD STB
> for the Australian market, most of the design work is already done, so it
> must be the front end tuner of a proper ATSC STB is much more costly than
> the front end of a DVB-T STB.
>
> John
>
> ----- Original Message ----- 
> From: "John Golitsis" <john@xxxxxxxxxxxxxxxxxx>
>
>
> > Perhaps it hasn't occurred to anyone else that if LG were to make the
> > "world's most popular" ATSC receiver, they would LOSE the royalties
> > they would have received from sales of competitor's units.
> >
> > I keep waiting for someone else to bring this up, but you are all too
> > busy coming up with inane conspiracy theories.
>
>
>
>
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