PVRs, DirecTV and Murdoch
Business Week has an interesting overview of Murdoch's vast empire, since News Corp. has successfully acquired DirecTV.
One of the strategies that DirecTV will be using to grow it's subscriber base will be to purchase and distribute DVRs in bulk.
Murdoch can make such pledges because he intends to buy new DVRs in bulk -- up to 20 million at a pop, says [News Corp executive] Carey, who figures mass purchases will drive the current $300-per-box price to below $200. Pressed on whether he would actually give away the boxes, Murdoch bristles. "[EchoStar Communications CEO] Charlie Ergen is already giving away some of his boxes. We will be matching him," he says. "We can't have him out there with a financially superior offering." At the moment, DirecTV offers the machines for $99, a price that will likely drop, he concedes.
Just a general comment: I find you site fascinating and interesting, even though its US based and I'm in the UK. I have a strong interest in PVRs, my TiVo being the device without I cannot live, and I fear for the day that it dies (we cannot get them here any more)! Keep up the good work.
Posted by: Steve | January 13, 2004 at 05:13 AM
This sounds like good (reve)news for TiVo.
PVRs do the job of VOD for satellite companies, that's why they're pushing it so hard. DISH, as matter of fact, calls their monthly DVR charge ($0-$9.99, depending on your channel package) "Dish-On-Demand".
Once 8-10 million people (or one quarter of the satellite subscribers + 1-2 million TiVo/ReplayTV and cable subscribers), have DVRs the TV industry will really start freaking about people not watching ads.
Posted by: Lucas | January 13, 2004 at 05:44 PM