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Why are DVRs so expensive?

Discussion in 'DIRECTV General Discussion' started by Xsabresx, Nov 14, 2011.

  1. Nov 14, 2011 #21 of 186
    dpeters11

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    I just don't know if all of them are. Of course usually you can get one DVR free as a new customer. I don't know if it's part of the acquisition costs etc.

    But I know I'd rather pay the $200 up front then have a per account $7 a month than to pay a DVR fee on each box. I believe I've seen some cable providers charge up to almost $20 per DVR.
     
  2. Nov 14, 2011 #22 of 186
    debell

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    Your lack of punctuation makes your posts difficult to understand.

    I don't know about Comcast, but with BHN you pay nothing for the receiver up front and you can schedule a technician to come and pick them up if you cancel or return to the local office. It doesn't get any easier than that :p
     
  3. Nov 14, 2011 #23 of 186
    debell

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    If you have multi room viewing on your DVR, why would you need more than 1 or 2 DVRs. All cable providers are providing this service as well, which eliminates the $20 fee per month on each DVR.
     
  4. Nov 14, 2011 #24 of 186
    Xsabresx

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    So you are thinking that because the chips are basically used for this and only this it increases the cost? That actually makes sense.
     
  5. Nov 14, 2011 #25 of 186
    lparsons21

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    I certainly can't speak for everyone, but for me 3 HDDVRs and whole home is just about right. 2 of them for me and 1 for my son. We watch completely different things so we can't share much between us.

    For my TV I have 2 HRs 'cause I need 4 tuners. Not uncommon during the broadcast channel's seasons for there to be 3 or 4 programs on at once that I want to watch and they don't repeat during the same week in general.

    I noticed that Brighthouse claims 'up to 16 event options', but I couldn't find a rate sheet.
     
  6. Nov 14, 2011 #26 of 186
    DogLover

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    And don't forget, while the DIRECTV name is on the boxes, they are made by different manufacturers. Each of those manufacturers pay workers to assemble the boxes, as well as wanting to take a profit for their company.

    I can easily see where the cost to DIRECTV is closer to the $400 ownership price than the $200 lease price.
     
  7. Nov 14, 2011 #27 of 186
    dpeters11

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    I don't know that all cable providers are offering a whole home DVR. Others have it in some markets. Brighthouse says it's not available in Birmingham Alabama for example.

    Personally, I only have two DVRs and one H25. But I know people that have DVRs on every TV, for the times they are watching something live, they have trickplay.

    I wasn't planning on having two DVRs, but I needed to switch out the H20 I had, and my wife was in charge of making the call. She didn't see a point in going with a regular receiver. Multiple DVRs is especially useful for having more than two tuners. Many cable boxes are limited to 20 hours of HD, and don't always support external drives.

    Now, with the HR34, I might drop back to one DVR.
     
  8. Nov 14, 2011 #28 of 186
    lparsons21

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    When I signed up I got 2 HRs free and got another one after I saw I needed it, the 3rd one cost me $200. But overall, I'm with you.

    But these discussions are fun but fruitless. The bottom line is the bottom line and is really the only number that matters. D* makes up the bottom line with some line items, just as do every other provider, but it all is about the bottom line. The in-between numbers are just to allow them to adjust for how much equipment, how many services and what programming package are there.

    Figure that the programming fee and DVR fee cover all that is needed for one HR. The other line items when you expand beyond that are for D* to generate the income from that expanded setup.

    None of the numbers have a direct relationship to an actual cost, imo.
     
  9. Nov 14, 2011 #29 of 186
    RACJ2

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    Need I remind you that a bad experience can happen with any company? Even with BHN's easy cancellation, there could still be issue [link]
     
  10. Nov 14, 2011 #30 of 186
    debell

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    I'm not sure what your point is. I've never argued that other companies don't have issues, I'm just making it a point that I had an issue with DirecTV.
     
  11. Nov 14, 2011 #31 of 186
    CCarncross

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    Build a DIY dual tuner PC-based dvr, tell me you can do it for less. Don't forget you have to take into acct the cost of the pc with a legal OS, dual tuner HD card, HDD of say 500GB. You cant use and old PC you have lying around to start with, it has to be from scratch. I cant really build one for less, in fact I believe it would cost more...plus when it dies I'm on the hook for it. I for one think $199(at most) for a reduced cost is reasonable. I'm not saying its cheap, but its not really out of line...each additional box on your account costs $6/month. you can look at it anyway you want, it doesnt matter what you call it, its $6/month, a fee they have always had, calling it a lease fee doesnt change what its for.
     
  12. Nov 14, 2011 #32 of 186
    RACJ2

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    I guess my point is, anyone can have a bad experience. One person can love a company, another can hate that same company. They both feel they have valid reasons for their opinion. Neither person is going to convince the other person that their opinion is right. So its best to just forget about it and move on.

    On the topic at hand, this has been mentioned before, but I'll reiterate the point. Whether its DIRECT, TMC, DISH or BHN, they all have a monthly price point they are trying to obtain, to make a profit.

    When I had TW Cable, they charged no upfront for DVR's and $15/mo for each DVR. I had 2 DVR's so I paid $30/mo and $720 over a 24 mo period.

    With DIRECTV, I paid $199 upfront for 1 DVR and the other was free. I pay $7/mo DVR service and $6/mo for 1 DVR for a total of $13/mo. So I paid $199 + ($13 x 24) = $511 over a 24 mo period. A savings of over $200 and if you keep them 3+ years, the savings increases exponentially.

    So in reality, are DIRECTV's DVR's actually expensive? I would say that if someone is afraid to commit to 24 mo's, then cable is better for them. Even if the DVR's cost more in the long run..
     
  13. Nov 14, 2011 #33 of 186
    poppo

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    I always get a kick out of people complaining about $199. Most probably don't remember when the HD Tivos came out for $999 and people were scarfing them up, no questions asked.
     
  14. Nov 14, 2011 #34 of 186
    TBoneit

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    One other thing to remember with the $199 cost to lease a DVR. I suspect this point applies to Dishnetwork and DirecTV......

    Cost of any needed hardware for the install. What percentage of installs need new cables run or a new dish or switch. For example going from SD to HD Significant parts and labor involved.

    I suspect that the Satellite companies have found it easier and more customer friendly to average out those costs and build them into the DVR lease fee.

    Can you imagine the noise on the forums if Joe with a one SD DVR to HD DVR posted his costs and the next person reading it paid a lot more for the install portion due to the extra hardware needed for his four HD DVRS?

    I hope I'm clear with my thoughts here. It isn't just the DVR hardware costs involved.
     
  15. Nov 14, 2011 #35 of 186
    Xsabresx

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    Well the thread was never meant to be a complaint, however your post sums up why my question ever came up. HD Tivos WERE $999 but the price dropped considerably over time.
     
  16. Nov 14, 2011 #36 of 186
    sigma1914

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    Good points. There's cables, connectors, LNBs, dishes, multiswitches, etc that are all "free" on installs.
     
  17. Nov 14, 2011 #37 of 186
    Xsabresx

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    Well you are right there. If I was building ONE DVR I probably couldnt do it less than $199. If I was building 5-10million I bet I could do it for pennies on the dollar.
     
  18. Nov 14, 2011 #38 of 186
    Xsabresx

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    But here's the rub. If I lease a box for $199 I get all of the things mentioned. If I BUY a box for $400-$500 I get all of the things mentioned.

    Either way I am still paying the lease/mirror fee.

    I guess really the answer to my question is a combination of VOS's answer and "because they can". It's fine. Like I had been harping on since the first post, I wasnt trying to start anything (contrary to what others may be trying to turn the thread into), I was just curious.
     
  19. Nov 14, 2011 #39 of 186
    poppo

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    Even it you were building 5-10 million, you still have a lot of overhead to recoup. And then there is the cost of getting them shipped etc.. I doubt your cost would be $199 or less.
     
  20. Nov 14, 2011 #40 of 186
    sigma1914

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    I get what you're saying and know you're not trying to start crap. :) It's a legitimate curiosity.

    I look at fees and billing with TV providers this way. Most are priced about the same when you throw out promotional stuff and have a simple setup. Each one has different billing items that end up getting to the same price point. Cable Company X will have "Free HD", but charge $19.99 for an HDDVR...Sat Company Y charges $10 for HD, but $6 for a HDDVR & a HD STB, & $3 for MRV. Both equal out to about $19-20.
     

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