Business Model
The business model being followed is a hardware/software model, based off the following estimations. These are all initial estimations and are subject to more extensive market research and experimentation.
-Cost to build: $200/unit
-Cost for distribution: $50/unit
-Cost for installation: $200/unit
-Average costs for support: $100/unit
-Initial fixed cost to acquire equipment, buildings: $5,000,000
-Sale Price: $599/unit
From market research:
-32,979,362 digital cable users in North-America
-18,158,229 digital satellite users in North-America
-17,272,877 digital antenna users in North-America
-0.5% market penetration in the first year.
-10% growth per year afterwards.
-After ten years, this yields a 1.2% market share.
Figure 1 shows the estimated revenue projections based off these numbers.
-Cost to build: $200/unit
-Cost for distribution: $50/unit
-Cost for installation: $200/unit
-Average costs for support: $100/unit
-Initial fixed cost to acquire equipment, buildings: $5,000,000
-Sale Price: $599/unit
From market research:
-32,979,362 digital cable users in North-America
-18,158,229 digital satellite users in North-America
-17,272,877 digital antenna users in North-America
-0.5% market penetration in the first year.
-10% growth per year afterwards.
-After ten years, this yields a 1.2% market share.
Figure 1 shows the estimated revenue projections based off these numbers.
The Excel spreadsheet used to calculate the projections can be downloaded from the market research page.