Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Echostar Comm. -- Ignore unavailable to you. Want to Upgrade?

To: John J. Thrall who wrote (556)	1/6/1998 3:45:00 AM
From: Satellite Mike	Respond to of 1394

How about a 50 Channel Music-only option for twenty or twenty- five bucks a month? MV BABER

To: John J. Thrall who wrote (556)	1/9/1998 9:27:00 AM
From: Noel	Read Replies (1) \| Respond to of 1394

JOHN: PPV is no where near as profitable as premium services. One cannibalizes the other. <<2. If they had additional channel capability, why aren't they using it for PPV movies. Right now they only offer 8 or 9 at a time, vs. DBS's advertised 50+ a night! PPV movies seem like an obvious revenue source, and I for one would probably buy more if there was a better selection.>> The deal is this, as I have expained before on this thread. PPV movies cost about 55% of retail. The most liberal buy rate quoted for DIRECTV is 2.0. That means for every sub, they sell 2.0 movies (of course, some buy more and many never use it at all). That means the revenue is 2.452.99 = @2.69 per month. It doesn't even cover the costs of tracking PPV buys, which is incredibly complicated and uses up a lot of their CSR resources, since it may cost $5-10 to handle a customer complaint about a $2.99 PPV on their bill. In exchange for this dubious profit, DIRECTV is tying up 60 channels of valuable bandwidth. Why? Because they were outmanuevered by USSB, who holds the rights to HBO, Cinemax, Showtime and The Movie Channel. In essence, they are using PPV to compete against USSB's premium channels. Premium channels like HBO usually carry a $5 per month profit, with small bandwidth requirements and no billing hassles. DISH has more than enough PPV to meet the needs of a movie buff, and certainly more than cable. Any more would simply tie up valuable bandwidth and drain away revenue from premium channels. In short, DISH has less PPV because they make more money because they own all the rights to premiums and that's more profitable. <<. Does anyone know anything about TEMPO. The table lists them as having the other 11 frequency licenses at 119 degrees, the location of Echostar I and II.>> Tempo is TSAT. See post number 561. Regards, NOEL