Weighed down by burgeoning debts and unrelenting losses of subscribers to direct broadcast satellite operators, cable industry attendees at the National Cable & Telecommunications Association show last week in Chicago acknowledged that they will soon be forced to try to pass some of the cost of their expensive home-entertainment hardware onto consumers.
Set-top manufacturer Motorola made an unexpected retail play at the show when it announced it will begin selling in stores by the first quarter of next year a DCP500 series home theater unit replete with a digital cable receiver, the ability to decode Dolby digital sound, and DVD and CD players. For Motorola, launching the new product marks a bold effort to show consumers an appliance that looks flashier than direct broadcast satellite purveyors’ modest receivers.
“You could say DBS has set the retail price for a [television] box at $99,” said Dwight Sakuma, director of market development for digital network systems in Motorola’s broadband communications sector. The system, which carries a suggested retail price of $849, will target well-heeled consumers. “We want to show a product that has distinct advantages over DBS with its Dolby sound and its DVD and CD player,” Mr. Sakuma said.
One industry analyst believes shifting the cost burden of home-entertainment units to consumers is becoming a trend. “Eventually, consumers are going to be stuck with the bill for the set-top box,” predicted Sean Badding, Carmel Group senior analyst and vice president of business development.
The new home-theater system is one of several innovative products that Motorola exhibited at the show. The company also displayed a wireless Internet contraption (known as a “Web pad”) that is billed as being able to communicate with set-top hardware via infrared technologies. Motorola expects to make the device’s launch official during the second quarter of next year.
“We’re soliciting feedback from the [multiple system operators],” said Barry Falvo, a senior systems engineer in Motorola’s broadband communications sector.
Cable operators will be given a choice of a wireless Web appliance that complies with the HomeRF networking standard and one that conforms to the Institute of Electrical and Electronic Engineers’ 802.11 protocol, Mr. Falvo noted.
Consumers to pay for hardware
Jun 18, 2001 • Post A Comment