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Discussion Starter · #1 ·
Our local thread for Las Vegas has been discussing costs for HD reception. Since all local stations broadcasting in HD are on the cable system too, you can weigh the cost of purchasing an OTA tuner (which also gives local sd digital and most are also sat recievers with premium content) vs a HD rental STB (which gives premium content). Currently with the new rate schedule for cable, a new (or existing) HDTV owner can get all the HD locals for $8.91 + HD box rental of $9.95 (under $20/mo) via cable. Add $6.99 and also get ESPNHD and DiscoveryHD. So for approximately $26/mo and no up front equipment costs (other than the TV) people can get 5 (soon to be 6) HD channels for a super low cost. The costs of adding the HBO and SHO channels is still the same as always for the packages, and nearly doubles the monthly costs, which doesn't make the HD chan/dollar as worthy.


Now for the ratio (work in progress - please give feedback!)


[(EC+fee*12) /12] / HD


{[(Equipment Costs) + (cost of monthly service multiplied by 12 for a year)] divided into 12 equal monthly payments as an average} divided by total number of HD channels watched or purchased.

Generic Example: Assuming 5 HD channels for $30/mo and upfront equipment cost is $300

Where EC=300

Monthly fees are 30 =(12*30=360)

Yearly Fees and equipment costs divided monthly are 660/12 = 55

Total equipment and service fees per month divided by total number of HD Channels recieved 55/5=11

Ratio of $11 per HD channel per month.


The ratio can be changed to look at the costs over 1, 2, and 3 years by changing 12 to 24 or 36 in both instances. This can be used to calculate cost performance ratios for new users deciding on which route they may take. For current users, this can give an idea where they stand.

Notes:

1) It seems obvious that purchasing a TV with a DTV tuner and getting free local channels would be the cheapest route. Instead, try to use the difference in cost of a TV w/o a tuner and antenna as the Equipment Cost and zero mothly costs. This should still be the cheapest route to HD.

2) With any OTA channels, the more your local area has, the lower the ratio is going to be with most users.

3) Not all channels are priced equally. HBO and SHO are the most expensive and OTA is free. Discovery and ESPN are mid tier priced. PPV needs a yearly average to be considered in th eequation. You can't call it an HD channel that you watch without some fees involved. For the sake of argument and throwing out a number, I will say your "per movie price" * 3 per month or 36 * the per movie price per year. If you don't order PPV or have more or less purchases, adjust accordingly.


Anybody clear headed enough to try it out or does it not make sense?


vegggas
 

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Discussion Starter · #2 ·
I thought I would use the previous information to try one out.

Source: Cox Cable Las Vegas

Equipment Cost = $0

Monthly service for basic service, rental STB, HD locals(3), ESPNHD and DiscHD (5 channels) = $30 (round up from $26 to $30/mo for taxes and fees)

1 year of service $30*12= $360 [or 2 years $30*24=$720]

Since there is no equipment costs, there is no averaging out the fee over a year or two. The per month cost is $30 no matter how many years service it's spread out.

Monthly cost divided 5HD channels is $30 / 5 = $6

The HD cost ratio is only $6 per month with those channels


To add HBO and SHO (4 channels) is $17.95/ month (per website for two movie channel packages added)

This changes to $48 /mo in fees and divided by 9 HD channels which equals $5.33 /mo per HD channel.


vegggas
 

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Discussion Starter · #3 ·
No takers?


No comments?


Should this be in a different forum?


vegggas
 

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Discussion Starter · #4 ·
Ok, enough with the hate mail already. I'm not bashing the decision to purchase expensive equipment, just giving an example of a cost ratio for equipment/service costs for the number of HD channels you get. I started this for a neighbor who asked my opinion for when he gets his new HDTV. He wanted to know the pro and cons for the built in tuner or sat or cable.

For the people that emailed, I understand if the only service you get is from sat and there is no other option available, I've been there too. This is only a formula to compare what you are getting as a cost ratio of what you paid vs what you get when it comes to HD channels. Use it to decide your upgrade path or if you are just statrting out.


vegggas
 
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