Re: In Move to Digital TV, Confusion Is in the Air [Telecom]

Dec 30, 2008 0 Replies

When I looked $59.99 seemed to be the going pre-coupon price > point, give or take a buck or two. Frankly, I think the > manufacturers' research determined that the market could bear a > $20.00 price and aimed for that, then added the $40.00 coupon > value to their prices as pure excess windfall profit....

Perhaps so, but I have another theory: the box is priced to make the program work without creating a secondary market.


If the price were close to $40, folks who subscribe to cable or satellite (like me), and who don't need a box, would get a $40 coupon anyway just to get a box for free (plus local taxes). Then turn around and sell it on eBay for $20. Because the coupon program is tied to physical address, there are lots of potential buyers who need a third box at the same address (e.g. dorm rooms, rooming houses).


If the price were substantially above $60, it would discourage potential buyers who actually need boxes.


The $60 price point is high enough to prevent a secondary market but low enough to make the program workable.


Neal McLain

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