-- Frank Eory
Bert & Mark wrote:
Subject: [opendtv] Re: Democrats Air Concerns About Analog SwitchoverIt is not a simple matter of "Cost". A proper business proposal for a new product development must analyze not only all the costs -- NRE costs of developing the product, the BOM cost per unit, the distribution cost, etc. -- but also the Total Available Market (TAM), the likely % of that TAM that could be captured over a period of time from product introduction, through ramp-up, ramp-down and End of Life, and of course the ASP. When all those numbers are crunched, an ROI is determined. This must be compared to the ROI of other new product proposals that compete for the company's limited resources. No company deliberately chooses to invest in developing new products that are guaranteed to make less profit than other new products the company is capable of producing.
Whether or not "cost is not associated with performance," which I think is far from clear, the reality is more likely that the economics of designing, manufacturing and delivering DTT STBs for the U.S. market just don't add up.
The "mandate" is an unnatural distortion of market forces, so it is not surprising that both producers and consumers will react to it in unusual ways. Most consumers react to it with either ignorance or indifference.
There are many more forces at work here than simply the broadcasters' lack of promotion of thier DTT product.
Besides which, CE manufacturersOf course they would. And perhaps most consumers would much rather buy an entire new TV than a STB. Does a new STB get me HD resolution on my existing TV? Does it make my TV screen flatter, or transform it from a CRT to an LCD? My old NTSC TV sets are all garage-sale throwaways, so at best, my assessment of the value of a DTT STB is something less than what my old TVs would fetch at a garage sale. Since I'm one of the 86% who has satellite or cable, my personal assessment of the DTT STB value is actually a lot less -- it is in fact ZERO, because it doesn't give my old TV any new capabilities that it doesn't already have from my pay-TV provider.
Switching to DVB-T would, by itself, change nothing. If, on the other hand, a reliable transmission system were coupled with a compelling service offering that could compete with cable & satellite, that is quite a different matter. "Freeview" saved DTT in the U.K., not DVB-T. But the success of one depends on the other.
---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.