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TV pricing as a utility

DirectTV is offering a new package called Titanium. For $7500 a year you get everything on DirectTV… EVERYTHING.

No restrictions, no pay per use fees. No channel package decisions. It is truly all you can eat. But at $650 a month, it may be hard to stomach. But wait… let’s do some math…

If you watch 80 hours of television (about 2.5 hours a day 7 days a week) a month that means every hour of television viewed costs you about $8.

Compare that with iTunes downloads which cost about $2 an hour. Even if you assume a premium for the increased content selection on DirectTV, it’s still a big difference.

Cable costs are the cheapest per viewing hour. My current Rogers bill runs around $90 a month which means I pay $1.09 per viewing hour, perhaps less because I probably watch more than 80 hours a month.

To bring DirectTV Titanium down to $2 per viewing hour, you would have to watch 300 hours of TV a month. Approximately 10 hours a day! Even if you were prepared to pay $4 a viewing hour you would need to watch 150 hours a month. Tough to make the math work.

Jon Lax More posts by Jon Lax