TV pricing as a utility

June 19, 2006 One Comment

DirectTV is offering a new package called “Titanium”:http://titanium.directv.com/. 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

written by Jon Lax

Comments 1

  • scott brooks

    Ok you sold me …i am quitting my job and getting the titanium package ….i am going to watch non stop to make it worth while …..wait a minute ….how am i going to pay this with out my job.

    I think that they would have been better off to say …$150 bucks a month …it is still more then i would want to pay but i could easily justify it to my self.

    I always look at pricing like this ….now would i rather have 10 people at 650 or a100 people at 150?

    Especially considering that there is no product to ship.

    Why would you be so greedy ?

    This makes it easy for bell expressvu to walk in and say ….$ 150 / mnth …every thing …
    leaving direct looking like the crooks that we already know that they are trying to be.

    I can lease a 350z by nissan for about the same price.

    cheers

    Scott

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