The extent of the 942 opportunity is a very rare occurence for Dish and should be maximized.
Competitive Analysis: Currently DirecTV has a quality HD-DVR solution which is marginalized by the fact that they are changing the core technology ie, HD-TIVO is a product for today, not tomorrow. Customers and more importantly dealers understand that that it's hard to sell a HD-DVR product for $1000 especally one that has a questionable future.
Summary of Opportunity: With the limited amount of HD-DVR's on the market, the massive sales increases in HD & HD Ready sets, and the high prices of the current available products a low cost HD-DVR would be a huge hit. Dish recognizes this with the announcement of the 942 pricing.
How to Maximize the Opportunity: The desire for the product will be very high, Dish wants new activations with minimal churn. Assuming pricing is less than an 811 & 522 and assuming good availability, Dish should offer the product for free with an extended service agreement, minimally two years and potentially three years. Currently Dish has some two year commitment options, it wouldn't be hard to offer the 942 with a two or three year commit requirement and I believe they will get a significantly increased number of people to sign up with the program. These will be the customers that dish wants, customers with money who value their TV experience. It becomes a win/win/win and it doesn't change the value proposition or the customer acquisition costs much.
Competitive Analysis: Currently DirecTV has a quality HD-DVR solution which is marginalized by the fact that they are changing the core technology ie, HD-TIVO is a product for today, not tomorrow. Customers and more importantly dealers understand that that it's hard to sell a HD-DVR product for $1000 especally one that has a questionable future.
Summary of Opportunity: With the limited amount of HD-DVR's on the market, the massive sales increases in HD & HD Ready sets, and the high prices of the current available products a low cost HD-DVR would be a huge hit. Dish recognizes this with the announcement of the 942 pricing.
How to Maximize the Opportunity: The desire for the product will be very high, Dish wants new activations with minimal churn. Assuming pricing is less than an 811 & 522 and assuming good availability, Dish should offer the product for free with an extended service agreement, minimally two years and potentially three years. Currently Dish has some two year commitment options, it wouldn't be hard to offer the 942 with a two or three year commit requirement and I believe they will get a significantly increased number of people to sign up with the program. These will be the customers that dish wants, customers with money who value their TV experience. It becomes a win/win/win and it doesn't change the value proposition or the customer acquisition costs much.
