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ReplayTV Switches To Subscription Model For New Unit
aclute writes "ReplayTV is going to move to a subscription-fee for it's new 4500 series in order to "meet the needs of national electronics retailers with lower overall costs and increased promotional opportunities" and "ensure the long-term success of our ReplayTV retail strategy". No talk yet of the cost or a lifetime/yearly option yet. Looks like TiVo might have had the right idea after all." I still want to get a 4500, but the vendor lockin with someone who's being sued by *everyone* does throw some cold water on desire for the machine.
They had the correct model. Perhaps it wont be so bad-if they have a lifetime/yearly option.
Retailers expect a given profit margin as a percentage of the sales price. If lifetime service is bundled into the sales price, then you have to inflate the service price to cover the retailer's profit. By selling it direct to the consumer, you don't have to mark it up.
It's all about profitability for SONICblue, and they're counting on long-term customers who feel better about spreading out the cost of the service versus paying up front for a lifetime subscription.
Assuming a lower cost barrier to entry and an ease of unsubscribing with no penalties, it benefits consumers to buy into this model. Consider a better, newer, faster, cheaper technology coming out in 1 year. If the consumer has paid less for the Replay 4500 + 1 year subscription than they would have invested with a lifetime-subscription Replay, they have more incentive to break away and invest in the new technology.
SONICblue's home is that they are the ones making that better-faster-cheaper technology and roping in existing subscribers to it. They may be too slow, however, as they'll also be concerned with sustaining their Replay business as well.
I predict a fleet-footed R&D-focused company will edge them out in 1-2 years on this subscription model.
... because they want to have control over that data. If they were to just pull the data from cable, they'd have no way of making sure you'd paid your subscription.
Because I'm damn sick and tired of clueless ReplayTV users trying to tell me their DVR is better than my TiVo because they think they aren't paying for subscriptions. (That's because they paid for it up-front in the cost of the unit, but now the point is moot.)
Computer-based solutions will always be a niche market. People don't want to leave their computers on all the time. People don't want to connect their computers to their home theaters. Sure, most people here think it is cool, but we're not most people.
As a consumer, I'm simply not interested in any device that can be 'sued' out of existence. My VCR is ten years old, and will continue to work until the day it croaks. Even if VCRs are declared illegal tomorrow, it will sit in my house and function as long as I want.
Personally, I would not buy a device (like the Replay) that becomes a paperweight if Replay ends up on the wrong end of a lawsuit.
And let me make something clear - I have no problem with them charging a monthly fee in exchange for service - it's then my choice to decide whether their service is worth the fee.
The concern is whether they'll be around to provide that service at all. By making the device worthless without the service, they have crippled the product.