TiVo Community Forum Archive 1

TiVo Community Forum Archive 1 (http://archive.tivocommunity.com/tivo-vb/index.php)
- TiVo Suggestion Avenue (http://archive.tivocommunity.com/tivo-vb/forumdisplay.php?forumid=6)
-- Concerns about mutliple DVR subscription pricing! (http://archive.tivocommunity.com/tivo-vb/showthread.php?threadid=111031)

Posted by Beach on 04-10-2003 12:59 PM:

Economies of Scale

What I am saying is if they do not have a way to price second and third DVRs at a more competitive price they will not see profitable growth.

1- Poor contracts are meant to be re-written if they are really locked in at a per DVR price. Better to re-write a contract than lose one as the company goes out of business.

2- Economies of scale on subscriptions are there. If Tivo hasn't found them then shame on them. Account management, downloading once, billing, etc. Do the math it is not hard to see how several in one house under one name cost less than one per house. Even cost of sale should be factored in to the cost.

3- That aside, this same price model WILL NOT WORK in the market. Time will prove this out. So many reasons I shouldn't have to explain. Find an example in the market were a service deliverable costs the same for multiple purchases (especially when the deliverable could feasibly cost ZERO)

Again the only sane reason could be some existing contract, that said get the lawyers together and fix an obvious problem. Whoever they pay a roylaty would much rather get less on devices 2, 3 and 4 than get nothing at all.

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