Don,
Using comparative economics, the VOOM DVR will MSRP for about $5000 based on their current buyout for the basic receiver. I recall my math earier this year on that box and determined it had a wholesale cost of $80.00
How do you figure that? The current VOOM STB uses the Broadcom BCM7035 MPEG-2 decoder (same basic chip in HDTV Tivo) and BCM3440 + BCM4500 satellite receiver with 8PSK. Those chips alone, plus the VSB demod, total $90 in 10,000 unit quantities, according to the press releases on the Broadcom site.
Don't forget the 32Mb
MSystems DiskOnChip Millenium Plus for the software ($30-$40), Silicon Image DVI transmitter ($6-$8), MIPS CPU, CardBus controller, DDR memory, appropriate DACs, modem, and any supporting silicon for PCI interface and PCI upgrade slot. In all, I see about a dozen different pieces of silicon, excluding the memory and 8VSB plug-in board.
Then you have the logic board, cardbus upgrade slot, power supply, chassis, and remote. The cost also needs to cover the H.264/WM9 decoder ($20-$40) in the STB upgrade module VOOM plans to deploy this fall. This technology is new, so it will command a premium for the near future.
Did I mention the hardware and software engineering costs? And what about the manufacturing and support costs?
I would personally be very surprised if the VOOM was paying less than $250 for each box. Motorola typically charges in the $300-$400 range for their cable STB hardware platform, and I doubt the VOOM STB would cost any less than that, seeing that it requires at least $30 more in silicon than a cable STB, and is produced in far smaller quantities (only 40,000).