Dish now has the cheapest HD receiver price. Not too bad considering Dish Network receivers are usually more expensive than DirecTv receivers.
DISH drops price of HD receivers!
- Thread starter cinemaandsound
- Start date
- Latest activity Latest activity:
- Replies 77
- Views 14K
Don't forget the upcoming 222 also. This should be a much better option for many than the 211. Should be able to reduce the number of receivers that people need. Especially those with 2 HD TVs and at least 1 more standard TV.
Perhaps the price drop is a stab at Tivo? Get even MORE Dish DVR's out there at a better price and KILL Tivo's market! I like it.
I wish they would have had two HD tv outputs on the 622. I think that was a huge mistake. The 222 would have two HD tv outputs and the 622 wouldn't.
I wonder if they are going to come out with a device that will allow any receiver connected to it to become a DVR. That would be the smart move to make because they could make all nonDVR receivers and then connect it to the DVR device to make multiple receivers DVR's. A smarter move would make a DVR unit where you could just add tuners to it like you would add memory to a computer or a board to the old c-band receivers.
A company that sells only the hardware will attempt to keep hardware prices high in order to make a profit.
However as E* is all about selling programming, it is in their best interest to sell the hardware as cheaply as possible. Consider that someone with HD Platinum w/locals will pay $3780 over 3 years for the programming. E* wants this person badly. If they price a receiver to make a profit on it, then they are going to drive some of these high-paying subs to cable. Thus they need to aggressively price the receivers as low as their business model allows them to.
Back in February I speculated that the cost to manufacture a 622 was probably in the $350 range. Even then I thought a price of $499 made more sense, as E* would still be covering their cost while driving sales of MPEG4 DVRs to both new and existing customers.
So I'm not the least bit surprised and am glad to see E* doing this.
However as E* is all about selling programming, it is in their best interest to sell the hardware as cheaply as possible. Consider that someone with HD Platinum w/locals will pay $3780 over 3 years for the programming. E* wants this person badly. If they price a receiver to make a profit on it, then they are going to drive some of these high-paying subs to cable. Thus they need to aggressively price the receivers as low as their business model allows them to.
Back in February I speculated that the cost to manufacture a 622 was probably in the $350 range. Even then I thought a price of $499 made more sense, as E* would still be covering their cost while driving sales of MPEG4 DVRs to both new and existing customers.
So I'm not the least bit surprised and am glad to see E* doing this.
Most people are not going to have HD Platinum though but if Dish gets another $25 a month average from the HD customers and makes $15 off of that then that is $180 a year.
I think that when the 622 hits $299-$349 that is when the sales will really start going up. Then could then offer it at a lease like they do the current 625 receivers.
Dish needs to have more manufactured to get the prices down even more. The 622 should be the standard DVR and the 222 should be the standard HD receiver in the future. It would make the most sense to make the 622 the standard receiver for all customers out there so that they can give all the customers HD and DVR capability and get the production costs down. They could turn the DVR functionality off if the customer does not want it. By simply being able to turn it on at will without a receiver swapout needed they could make up for some of the extra cost. They would probably have to charge $10 a month for DVR functionality though to do any good.
I think that when the 622 hits $299-$349 that is when the sales will really start going up. Then could then offer it at a lease like they do the current 625 receivers.
Dish needs to have more manufactured to get the prices down even more. The 622 should be the standard DVR and the 222 should be the standard HD receiver in the future. It would make the most sense to make the 622 the standard receiver for all customers out there so that they can give all the customers HD and DVR capability and get the production costs down. They could turn the DVR functionality off if the customer does not want it. By simply being able to turn it on at will without a receiver swapout needed they could make up for some of the extra cost. They would probably have to charge $10 a month for DVR functionality though to do any good.
Let's say the average HD w/HD DVR sub gets HD Silver with HBO. That's $75 a month with a $5 DVR fee for $80, plus locals to bring it to $85. I would be surprised if the average HD sub w/HD DVR is less than $85/month. Let's round it down to $80 for an estimate.
$80/mon = $960/yr.
That generates $2880 over 3 years, $3840 over 4 years, $4800 over 5 years.
Even if Dish sells you a 622 at a $50 loss, they still come out ahead over the long term.
They need to keep pushing the price down as far as they can, to drive installations. They can't take a huge loss on them, for if a million people took advantage of a $200 loss, then they lose $200M. But selling them at cost, or even a slight loss, would seem to be a good business model when the big profits come from the monthly subscriptions.
Just like on cell phones.
$80/mon = $960/yr.
That generates $2880 over 3 years, $3840 over 4 years, $4800 over 5 years.
Even if Dish sells you a 622 at a $50 loss, they still come out ahead over the long term.
They need to keep pushing the price down as far as they can, to drive installations. They can't take a huge loss on them, for if a million people took advantage of a $200 loss, then they lose $200M. But selling them at cost, or even a slight loss, would seem to be a good business model when the big profits come from the monthly subscriptions.
Just like on cell phones.
$6 DVR fee. Dish may offer subs the HD DVR for a $10 a month fee which would include the DVR fee so they would still end up getting $4 more a month than what the DVR fee would be. A lot of people would go for that. Having no additional outlet fee would help make up half of that cost.
Dish is not making $960 a year, maybe half of that. Still at $500 a year they recoup the cost of that receiver of a year or less. Even if Dish makes $10 a month off of you getting that receiver that alone is $120 a year and they recoup the cost over 3-4 years. If they can get the customer to pay $99 upfront or sell the receiver to the customer for $199 then Dish only has $200-300 in the customer. With $6 a month Dish gets their money back over a period of $3-4 years. Dish recoups the cost in a less amount of time considering the extra monies received from HD programming.
This is not factoring in the satisfaction the customer gets resulting in less churn. That combined with additional HD revenue and $6 a month DVR revenue should make up for at least reducing the retail price of the HD DVR (622) to $199-299 OWNED NOT LEASED! At least give the customer a $99 lease then make the customer return it when done with it. If they get it returned 2-3 times then they recouped most of the money from it and what they didnt get from the receiver they get from the monthly DVR and HD fees. I am thinking that Dish is looking at the risk with the money shelled out up front.
Dish is not making $960 a year, maybe half of that. Still at $500 a year they recoup the cost of that receiver of a year or less. Even if Dish makes $10 a month off of you getting that receiver that alone is $120 a year and they recoup the cost over 3-4 years. If they can get the customer to pay $99 upfront or sell the receiver to the customer for $199 then Dish only has $200-300 in the customer. With $6 a month Dish gets their money back over a period of $3-4 years. Dish recoups the cost in a less amount of time considering the extra monies received from HD programming.
This is not factoring in the satisfaction the customer gets resulting in less churn. That combined with additional HD revenue and $6 a month DVR revenue should make up for at least reducing the retail price of the HD DVR (622) to $199-299 OWNED NOT LEASED! At least give the customer a $99 lease then make the customer return it when done with it. If they get it returned 2-3 times then they recouped most of the money from it and what they didnt get from the receiver they get from the monthly DVR and HD fees. I am thinking that Dish is looking at the risk with the money shelled out up front.
roachxp said:
HDMI since 1.0 has been capable of handling 1080p/60. This is in the base specification. 1080p/24, 1080p/30 and 1080p/60 are all valid across HDMI.
PAL rates (1080p/25 and 1080p/50) might also be possible, but I haven't researched this.
Of course E* probably knows something that we don't maybe they will screw us Mpeg4 early adopters
John Kotches;
True, but not quite true at the same time. All versions of the HDMI spec present the phsyical capability (i.e. bandwidth) to carry 1080p. The issue with 1080p is in the actual transfer protocol and "content protection" (i.e. DRM) areas, and those will NOT be finalized until the HDMI Spec V1.3 is released later this summer. Full 1080p output has already been sh*tcanned for the recently released first-gen HD-DVD players and, as of this moment, there is a very large possiblity that the first Blu-ray players (perhaps even including the PS3) will NOT be capable of outputting a 1080p signal. So, while technically one could say HDMI V1.0 is 1080p "capable", the reality is that is really is not.
True, but not quite true at the same time
. All versions of the HDMI spec present the phsyical capability (i.e. bandwidth) to carry 1080p. The issue with 1080p is in the actual transfer protocol and "content protection" (i.e. DRM) areas, and those will NOT be finalized until the HDMI Spec V1.3 is released later this summer. Full 1080p output has already been sh*tcanned for the recently released first-gen HD-DVD players and, as of this moment, there is a very large possiblity that the first Blu-ray players (perhaps even including the PS3) will NOT be capable of outputting a 1080p signal. So, while technically one could say HDMI V1.0 is 1080p "capable", the reality is that is really is not.
sullivbt said:John Kotches;
True, but not quite true at the same time
The specs for HDMI with HDCP (which is the DRM layer utilized) cover 1080p transmission and have allowed the transfer of 1080p since day one of HDMI 1.0. This is directly from Silicon Images.
Implementation at the sink (aka display) and source (aka players) level is manufacturer dependent.
Cheers,
Not many of us have TVs that can handle 1080p60. Those that do can probably afford to pop for a new HD DVR when that format begins to be broadcast.
I'd be surprised if 1080p60 becomes a broadcast standard within 2 years. I know there have been rumors about ESPN going to 1080p for more than a year now, but I don't think it is imminent.
I'd be surprised if 1080p60 becomes a broadcast standard within 2 years. I know there have been rumors about ESPN going to 1080p for more than a year now, but I don't think it is imminent.
Stupid question, I know...but here goes.
If I wanted to combine leased w/ purchased equipment in an upgrade sweep, and I decide to NOT buy direct from Dish, how does that work?
In short, say I decide to buy my 622 from Retailer A, but upgrade/lease swap my 811s for 2 211s. Right now I'm assuming I need no Dish 1000 swap-out, as my two-dish setup gives me coverage in the Chicago market for all current HD/locals and the new "MPEG-4" channels, I believe. So, do I pay premium for the 'install' of the 622, but get the $49 per deal from Dish.
Sorry, I've not gone through these kinds of convoluted upgrades before...I was planning on a full home lease upgrade but Dish doesn't seem to want to do it and I don't like the idea of paying for programming (i.e. those new HD "MPEG-4" channels) I can't see in all the rooms I have service.
If I wanted to combine leased w/ purchased equipment in an upgrade sweep, and I decide to NOT buy direct from Dish, how does that work?
In short, say I decide to buy my 622 from Retailer A, but upgrade/lease swap my 811s for 2 211s. Right now I'm assuming I need no Dish 1000 swap-out, as my two-dish setup gives me coverage in the Chicago market for all current HD/locals and the new "MPEG-4" channels, I believe. So, do I pay premium for the 'install' of the 622, but get the $49 per deal from Dish.
Sorry, I've not gone through these kinds of convoluted upgrades before...I was planning on a full home lease upgrade but Dish doesn't seem to want to do it and I don't like the idea of paying for programming (i.e. those new HD "MPEG-4" channels) I can't see in all the rooms I have service.
I could be wrong on that, I don't think that Dish allow you to buy the box from retailer A than turn it into a "lease upgrade" offer from Dish........
I bought the box after they reduced price and forget abot the whole lease upgrade deal, which I really can not see any good reasons, especially for those of us had own box to begine with.
I bought the box after they reduced price and forget abot the whole lease upgrade deal, which I really can not see any good reasons, especially for those of us had own box to begine with.
My question is more to the point of activation/installation. I.E., do you set up separate installs and pay out-of-pocket for the retailer purchased box?
BTW, I don't really want to purchase anything right now...I'm just exploring the options in getting my three rooms upgraded.
BTW, I don't really want to purchase anything right now...I'm just exploring the options in getting my three rooms upgraded.
