[opendtv] Re: How About Portable ATSC Receivers?
- From: "John Shutt" <shuttj@xxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 4 Apr 2005 12:57:53 -0400
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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