[opendtv] Re: Democrats Air Concerns About Analog Switchover

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Mon, 20 Nov 2006 18:02:51 -0500

Frank Eory wrote:

> It 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.

I know Frank's right on this. For one, I fight those battles too.

In this case, though, where the companies are providing the best and
newest for their integrated sets already, and where the companies in
question already had STBs for sale previously, and when they can include
CableCard, it just seems to me that things are less cut and dried. An
interested bean counter could make the case that swapping demods and
tuner module (for example), and adding a slight amount of pizzaz to the
new box to make it look different from the old, and adding in all those
digital cable customers, would be an appealing product for a small NRE
cost.

> 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.

Seems to me, the trick is to integrate the DTT product with the digital
cable product. It's not difficult to do, and it opens up a very big
market. I'd buy an up to date DVDR/HDTV STB, for example, if there were
any sort of choice out there. Even if the DVD recordings were not HD.
And such a box would also have CableCard, so it's useful for cable
subscribers who don't want to pay rent for their recorder.

HD DVDRs will perhaps come this way, we'll see. The new HD TiVo has done
this, but of course TiVo wants to make you an infinite revenue stream
too.

A plain HD STB would have a market when analog is shut off, and with
CableCard it too would appeal to cable subscribers. Everyone seems to be
running scared of the cable companies.

Bert
 
 
----------------------------------------------------------------------
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.

Other related posts: