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Discussion in 'DIRECTV General Discussion' started by scottchez, Jan 31, 2004.
What is this news. Please post it here. Don't give me a link to Satellitegirls or whatever it is.
I bet Charlie's head is red over that news, lol.
Scott, I have to offer you an apology. I agree that this isn't exactly headspinning (at least to me) but I love the jab it would take at Charlie for charging his "DVR" fee. I wonder if Dish will now completely pull the fee they charge.
Now if Direct would offer free warranty coverage, that would REALLY be fun!
What's the name of the thread on avsforum? I didn't see it.
Ok a lot of folks have been wondering about the big news. I finally just heard from my contact who couldnt really talk, however he did tell me something that we have speculated on for a long time here at SatelliteGuys.
It appears that DirecTV is planning on rolling out "A DVR in Every Home" where all DirecTV customers will be upgraded to a DirecTV DVR. I was told that this DVR will not use TIVO, however it will use software from News Corp. I was told this DVR will have NO MONTHLY DVR FEES. I was also told that the users will have the option to upgrade to better TIVO based software for a monthly charge.
The new units will have additional hardware such as 8psk which would let DirecTV offer more channels with their existing bandwidth.
No word on if this upgrade will cost the customers anything.
I am not sure if this is the news that will make Charlie Head Spin, but there you have it.
More as I have it.
This fee is a subsidy fee as well as a fee that is possible because competitors are also charging a similar fee. When you get a free 510 Charlie likes to try to recoup some of that cost. It's really not much more than a payment plan for the 510. However it does make no sense to people who paid $299 for a 510 and so on, but if the fee was selectively charged then people would say, "hey, why do I get a fee and he doesn't", and so on.
The fees are not so bad to anyone when viewed in perspective. For example if we say that the PVR costs $200 for E* to actually make, then E* profit for the PVR would be:
ECHOSTAR HYPOTHETICAL PROFITS
Pay for PVR outright, no commitment: $299 - $200 = $99 hypothetical profits on the PVR.
Pay $99 for PVR and get 1 year commit: $99 - $200 + $60 = $-41 hypothetical loss
on the PVR.
Free PVR and 2 year commit: $0 - $200 + $120 = $-80 hypothetical loss on the PVR.
So where does Echostar make it's money? The commitments to keep a minimum level of programming. Now look at the cost to you for the PVR, prices include up front fee:
Pay Outright: $299. Additional costs if you use it, including price of PVR: $359 for one year, $419 for two year, $479 3 year, $539 4 year
Pay $99, 1 year commit: $159 for one year, $219 for two year, $279 3 year, $339 4 year
Pay $0, 2 year commit: $120 for two year, $180 for 3 year, $240 for 4 year
Clearly the commitment choices are better. You could have a 510 for 4 years and over those 4 years it would only have cost you $240. And after just $120 (2 years) you could quit E* and sell the 510 for maybe $200 and make a profit of $80!
The fee is not so bad. Perhaps they should have a $199 option with no commitment but other than that the fee is not so bad.
I see, I think the trojan horse in this case is 8PSK. If they can get a cheapo Newscorp DVR in every home in the next 2 years they can dump QPSK and gain about 33% bandwidth or so. Maybe even accept a lesser gain such as 25% and improve PQ. Unfortuniately the TIVOs and Replays do not have 8PSK so I see a problem in the future.
I agree. I think there are many people who would prefer the option of paying up front and having it over and done with. However, I am hopeful that Dish will pull their fee to not give up the competitive edge. Dish shot into the lead with PVRs because of their original pricing. I paid $199 for my 501 w/no monthly fee and felt it was a bargain, bugs and all.
Its odd how in Chicago on cable, they get WGN-TV that is the local WB not the cable/satellite WGN station. The only way people in the Chicago area can get WGN satellite is by getting a dish.
Originally, WGN-TV and WGN-Satellite were the same thing, including WB programming. Part of this was that they could show Chicago Cubs baseball. When Syndication Exclusivity went into effect, the WGN satellite feed was changed so that substitute programming was aired instead of programming that was subject to black out. WGN was also a major distributor of WB programming in order to get the "network" off the ground, but has since discontinued that and substituted other programming.
If they want the 8PSK in the new receivers for additional bandwidth then wouldn't they have to replace all the receivers in a consumer's home with this new receiver? Would this mean that those customers that currently have four receivers would get four new DVR's with 8PSK as a replacement or just one of them replaced, or does it mean that they will have one replaced with the DVR receiver and the others with a basic 8PSK receiver without DVR functionality, or perhaps a DVR receiver with multiple tuners?
It seems to me like they want to make up for some of the hardware costs by giving the consumers the DVR receiver to try to get an extra fee per month. This is their way of making up for their costs even though it may look like a swapout to keep the customers happy.
When I first heard that it would be a free DVR service I thought that they had to be trying to get an extra fee from that receiver somehow, perhaps for more DVR functionality they would charge a fee, that there was something behind this.
Terry, don't you get it? There is no "BIG NEWS". Whatever it was, a false rumor planted by an idiot troll, or someone's idea of a joke, seems a lot of people wet their panties in eager anticipation.
If D* had asked Voom to the dance, I was going to don my traveling kicks and cha-cha on over to the dark side.