Talk about poorly educated.
Well I don't know about the gentleman you quoted, but I will play.
What is your background? Which school did you get your Marketing and or Strategy MBA from? Do you work in any one of the Big-4 consulting firms?
What are you estimates for these and we can try to build a pro-forma together.
1) Fixed Cost
2) Variable Cost
3) Potential Cannibalization % (by offering cricket, what % of viewers will stop watching everything else)
4) What type of market is Cricket-watchers (i.e introductory, growing, mature market etc)...
5) What pricing strategy is Dish using? (Penetration, skimming etc?)
6) What are their 3 main forecast methods to estimate for existing dish subs to subscribe to this package? (1-year, 2-year, 5-year estimates)
7) Total additional revenue from #6.
8) Therefore the contribution margin %
9) Break even estimates in terms of number of subs. For added fun lets do sensitivity analysis for a 5%, 10% price increase.
10) Total profit (edit. Please include the biggest potential revenue source -advertizing revenue- somewhere to calculate this)
11) Break-even price in terms of $.
12) What is their target 1-year, 2-year, 5-year ROI? What probability do you estimate for them reaching it ?
I have more but that is a good place to start in my opinion.
We can also do SWOT analysis(strengths, weaknesses, opportunities, threats etc) of this move by Dish. It can help with at least some of the analytical questions.
Do you think this is a big enough incentive that Dish is offering to attract the South Asian DirecTV subs to switch over? What percentage? Keep in mind that they have always had the better international offerings (especially EASTERN HEMISPHERE programming) but DirecTV still has a share of this market.
Last question(s): Do you think the price is correct at $20? Do you think they are short changing themselves? or is it too high to be attractive for current customers and new customers to subscribe to this.
Sorry so many questions, but I was hoping to steer the conversation away to something more constructive than pure speculation(if you want to call it that).