We know there will not be an adequate supply of MPEG4 receivers for the next few months. However we don't know just how limited the supply is.
Do you think that the decision to limit existing customers on their number of upgrades is due to solely to the lack of MPEG4 receivers?
Or do you think E* is rationing them out, limiting the existing customer upgradess in order to have enough to sell to new HD LIL markets? I.e., is the upgrade channel getting squeezed because E* places a higher value on meeting the needs of new customers than their existing customers?
I suspect the latter is true. That E* could upgrade many more existing customers if that were a priority. But in order to conserve receivers for new customers, they have decided to allow existing customers to get only one new receiver, enabling them to watch the new channels on their primary HDTV, but would rather sell to a new customer than give the existing customer the option of getting the new channels on a 2nd or 3rd HDTV.
I'm not saying that this is the wrong business model. E* does need to grow their customer base and they would like to more aggressively market HD to the large cities where they are going to offer HD LILs. Otherwise D* will be mining those markets while E* can't supply the equipment. But it is frustrating.
Do you think that the decision to limit existing customers on their number of upgrades is due to solely to the lack of MPEG4 receivers?
Or do you think E* is rationing them out, limiting the existing customer upgradess in order to have enough to sell to new HD LIL markets? I.e., is the upgrade channel getting squeezed because E* places a higher value on meeting the needs of new customers than their existing customers?
I suspect the latter is true. That E* could upgrade many more existing customers if that were a priority. But in order to conserve receivers for new customers, they have decided to allow existing customers to get only one new receiver, enabling them to watch the new channels on their primary HDTV, but would rather sell to a new customer than give the existing customer the option of getting the new channels on a 2nd or 3rd HDTV.
I'm not saying that this is the wrong business model. E* does need to grow their customer base and they would like to more aggressively market HD to the large cities where they are going to offer HD LILs. Otherwise D* will be mining those markets while E* can't supply the equipment. But it is frustrating.