1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Why are DVRs so expensive?

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

  1. Nov 14, 2011 #1 of 186
    Xsabresx

    Xsabresx Icon

    1,043
    4
    Oct 8, 2007
    I am sure this had been explained probably numerous times here, but I havent found anything.

    First, this is NOT a complaint thread. I understand it is what it is and I accept that as part of dealing with Directv. I am just curious.

    Why are DVRs so expensive? Leasing is $199 and owning is several times more than that ($199 to own would make sense). Hasnt technology gotten to the point where these things cost next to nothing to build? There has to be a huge profit margin in them. Because they are proprietary it would seem to me at least that they would be cheap because you can only use them for one thing.

    Anyway, like I said, this isnt a rant. Just curious.
     
  2. Nov 14, 2011 #2 of 186
    sigma1914

    sigma1914 Well-Known Member DBSTalk Club

    14,602
    372
    Sep 5, 2006
    Allen, TX
    I think it's like every product...they're all cheap to make, but the seller wants money.
     
  3. Nov 14, 2011 #3 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    This is a great question that I can't seem to find an answer on. I don't understand the pricing structure behind the DVRs either but apparently DirecTV is getting many people to purchase them. I'm interested in knowing the answer on this as well.
     
  4. Nov 14, 2011 #4 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    If I recall correctly, you stated that a lot of time goes into researching and creating these products which is why DirecTV charges so much for them? :confused:
     
  5. Nov 14, 2011 #5 of 186
    dpeters11

    dpeters11 Hall Of Fame

    16,340
    503
    May 30, 2007
    Cincinnati
    And it's not just cost of components, but the added costs. Of course some (I don't know if all) are covered by monthly fees, but since we only pay a per account fee, it's likely not everything. Things like licensing costs such as to Tivo, development cost for new functionality etc.
     
  6. Nov 14, 2011 #6 of 186
    scsa1000

    scsa1000 AllStar

    80
    0
    Feb 11, 2011
    Great you never learn your lesson you got your thread deleted yet here you are starting up again. Tc I think sigma answered it best for you. Of course I miss out on dpeters answer which was good too. Tc listen to both sigma and dpeters.
     
  7. Nov 14, 2011 #7 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    Shouldn't those costs be associated with the DVR, HD and service related fees that are charged per month?
     
  8. Nov 14, 2011 #8 of 186
    Xsabresx

    Xsabresx Icon

    1,043
    4
    Oct 8, 2007
    But even that really makes no sense. Ok so I spend $199 to lease a receiver, and then I pay $6/$7 per month as a lease fee. Ok fine. They are getting their $199 plus their monthly fee. If they are owned why cant they be $199 to own and $6/$7 mirror fee like it was in the past?

    I guess that is where I am lost.
     
  9. Nov 14, 2011 #9 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    Be careful, you're going to open a huge can of worms if you go down this path. There are some on here who don't like you question the almighty one that is DirecTV.
     
  10. Nov 14, 2011 #10 of 186
    Xsabresx

    Xsabresx Icon

    1,043
    4
    Oct 8, 2007
    There is a HUGE difference between "questioning" and "asking a question".

    I am simply curious and it has no bearing on my outlook to Directv.

    Please dont turn my thread into something it isnt. In fact I dont want to know bad enough to read more of your incessant bad mouthing
     
  11. Nov 14, 2011 #11 of 186
    lparsons21

    lparsons21 Hall Of Fame

    4,306
    207
    Mar 4, 2006
    Herrin, IL
    This is a really good subject, I love it when it comes up now and then.

    The cost to produce the DVR isn't relevant as the 'leasing' price is what it is. Assume that you pay a $200 upfront for an HDDVR, now if you got that from D* directly, then you don't know which one you will get, whether it is new or 'refurbished' and whether it will be in great looking shape or suck pond scum. All that for the $200.

    For new customers, and quite a few current customers, there is no upfront fee involved unless you want more than a couple of them.

    Now to the 'lease fee'. First it isn't a lease fee, never was regardless of what it appears to be on paper. It is a 'because we can' or use fee if you will. There is exactly zero about that fee that makes it a lease, 'cause if it was actually that and you owned one, there wouldn't be a fee at all. But there is. The 'lease fee' automagically becomes the 'mirror fee' or 'additonal receiver fee' in the case of owned.

    And Debell, no D* doesn't really get many to actually buy the receivers.
     
  12. Nov 14, 2011 #12 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    A difference between questioning and asking a question? That's interesting :rolleyes:

    My point is that you are absolutely right: paying $199 for a reciever + $6/7 a month for the receiver is ridiculous. Those who support DTV on here think otherwise so you're not going to get anywhere with this question (as you can see from the first response in this thread).
     
  13. Nov 14, 2011 #13 of 186
    scsa1000

    scsa1000 AllStar

    80
    0
    Feb 11, 2011
    Don't worry x the only one who is getting their agenda pushed is this person. I have seen you get answers to your question fairly hell sigma is answering you when sigma and I are big direct tv fans and his answer was great. Debel has an agenda which at least the mods are seeing what he is trying to do.
     
  14. Nov 14, 2011 #14 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    So DirecTV calls it a lease fee but it's not a lease fee? :rolleyes:
     
  15. Nov 14, 2011 #15 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    So the answer is that sellers want to make money?
     
  16. Nov 14, 2011 #16 of 186
    veryoldschool

    veryoldschool Lifetime Achiever Staff Member Super Moderator DBSTalk Club

    42,684
    349
    Dec 9, 2006
    I think the costs are close to around $400/unit. Sure this may have profit in it too.
    Broadcom and the other chip makers are taking their cut as these aren't used [in the same numbers] like cell phones, or computer chips.
    The monthly fees aren't related to the cost/or recovery of it, but "merely" another revenue stream for DirecTV, just like the $3/month for MRV.
     
  17. Nov 14, 2011 #17 of 186
    lparsons21

    lparsons21 Hall Of Fame

    4,306
    207
    Mar 4, 2006
    Herrin, IL
    Just like Dish which is the only real direct comparison.
     
  18. Nov 14, 2011 #18 of 186
    scsa1000

    scsa1000 AllStar

    80
    0
    Feb 11, 2011
    Very old it's a fact we need to live with hell Comcast cable boxes are 500 if you lose it or break it when you leave the same goes with these.
     
  19. Nov 14, 2011 #19 of 186
    debell

    debell Godfather

    275
    0
    Nov 6, 2011
    Since DirecTV reuses these receivers for several years and "resells" them at full price and doesn't guarantee you'll get a new model, they must be making a killing reselling used equipment to customers at "new equipment" pricing! :lol:
     
  20. Nov 14, 2011 #20 of 186
    sigma1914

    sigma1914 Well-Known Member DBSTalk Club

    14,602
    372
    Sep 5, 2006
    Allen, TX
    Because some are given away for free or less than $199. It's capitalism...make as much money as possible and sustain it. Listen to what Mark Cuban says...CEOs are trying to increase their portfolio. In the case of DirecTV, DVR fees help do that.

    [YOUTUBE]8jizJj_rU_8[/YOUTUBE]
     

Share This Page