It's nice to see people have a complete understanding of the D* business model. (Not that D* does, based on how they're bleeding with Sunday Ticket).
So, the argument is that the DVR must be vastly more costly than $299 to $399 and we should all be very thankful for D* for being kind enough to lease us one?
Horse hockey.
Let us set aside the cost of customer acquisition and the profit margin D* makes from your programming packages, the sports stuff and so on (all of which, btw, is the key part of the revenue stream — or why an XBox 360 is only $399, when its parts/software are probably closer to $500 in costs).
I have a pretty good idea of the cost of the components involved — the tuner chip, the drive and MPEG-4 chip and it's ballpark for $300. So, basically, if you "lease" an HR-20, you're largely covering their build costs right then and there or will after the first month's bill is paid. So, yes, it's a scam. If Dell can sell a PC with arguably more chips and elements for $299, an HD PVR for the same price is very doable.
It is any worse than what cable does? No.
Me, I'm waiting to see a couple of things: when/if FIOS (and yes, I have the Internet service already) gets a deal for the pro sports packages (other than the NFL) and/or when D* forces me to switch to MPEG-4, new dish, new receivers. I've been a customer since 1996 — not to mention a product reviewer — and as much as I'll miss about half of my NY Giants' games, I'll be just fine if I have to pull the plug once and for all on D* and switch to Verizon.
But if I do stay, I'm not paying $299 or $399 for an HDR. Considering the cost of churn — I seriously doubt they'd let me cancel over that issue.
Of course, those of you willing to happily bend down before Uncle Rupert's throne and, uh, accept it like good school boys, you're all entitled. I'm sure the rest of us can take up a collection for a tin of Vaseline.
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