Comments on: SlingCatcher’s CES Dreams http://www.markevanstech.com/2007/01/07/slingcatchers-ces-dreams/ Insight and Analysis from North of the Border Sat, 22 Nov 2008 11:58:19 +0000 http://wordpress.org/?v=2.6.1 By: FinancialSuccessPlan.info » Podcast for 2/15/07: Stop Second-Guessing http://www.markevanstech.com/2007/01/07/slingcatchers-ces-dreams/#comment-5244 FinancialSuccessPlan.info » Podcast for 2/15/07: Stop Second-Guessing Wed, 25 Apr 2007 23:03:14 +0000 http://markevanstech.com/?p=2016#comment-5244 [...] vendors. Slingbox taking files from your computer and playing them on your TV is something that Mark?s written about [...] [...] vendors. Slingbox taking files from your computer and playing them on your TV is something that Mark?s written about [...]

]]> By: Investing Courses » One Page Annotated WSJ Summary: Wednesday Sept. 20 http://www.markevanstech.com/2007/01/07/slingcatchers-ces-dreams/#comment-5211 Investing Courses » One Page Annotated WSJ Summary: Wednesday Sept. 20 Mon, 23 Apr 2007 22:47:39 +0000 http://markevanstech.com/?p=2016#comment-5211 [...] vendors. Slingbox taking files from your computer and playing them on your TV is something that Mark?s written about [...] [...] vendors. Slingbox taking files from your computer and playing them on your TV is something that Mark?s written about [...]

]]> By: David Beckemeyer http://www.markevanstech.com/2007/01/07/slingcatchers-ces-dreams/#comment-2315 David Beckemeyer Mon, 08 Jan 2007 02:33:59 +0000 http://markevanstech.com/?p=2016#comment-2315 200,000 units won't get them their $40M back, as you know (they don't have zero cost, 100% profit on this box). And the VCs expect 10x on that money too. They probably don't have all that much margin at $200 retail, considering after retail and distribution take their cuts, there's only $100 or so left for Sling. It's hard to say what that leaves for gross margin after the BOM costs of the box. If we're optimisitic, it's maybe $40. But even a bigger expense, I'd wager, is the marketing cost. One has to wonder how much they're spending per customer today. Convincing people to dig out $200 from their wallet can be rather expensive, especially for a product that is pure "luxury" (there is no ROI-based argument for it). With the kind of marketing I've seen from Sling, I wouldn't be surprised to find their spending $100 or more per customer, meaning they are actually "buying" these customers today to get "traction" losing perhaps $50 or more per customer. All this is speculation, based on lots of experience with consumer/retail/hardware, but certainly not based on any hard specific data about Sling. So in short, they have to sell more like tens-of-millions of boxes to have the returns they and their investors want. 200,000 units won’t get them their $40M back, as you know (they don’t have zero cost, 100% profit on this box). And the VCs expect 10x on that money too. They probably don’t have all that much margin at $200 retail, considering after retail and distribution take their cuts, there’s only $100 or so left for Sling. It’s hard to say what that leaves for gross margin after the BOM costs of the box. If we’re optimisitic, it’s maybe $40. But even a bigger expense, I’d wager, is the marketing cost. One has to wonder how much they’re spending per customer today. Convincing people to dig out $200 from their wallet can be rather expensive, especially for a product that is pure “luxury” (there is no ROI-based argument for it). With the kind of marketing I’ve seen from Sling, I wouldn’t be surprised to find their spending $100 or more per customer, meaning they are actually “buying” these customers today to get “traction” losing perhaps $50 or more per customer. All this is speculation, based on lots of experience with consumer/retail/hardware, but certainly not based on any hard specific data about Sling. So in short, they have to sell more like tens-of-millions of boxes to have the returns they and their investors want.

]]> By: Mark Evans http://www.markevanstech.com/2007/01/07/slingcatchers-ces-dreams/#comment-2312 Mark Evans Sun, 07 Jan 2007 22:14:49 +0000 http://markevanstech.com/?p=2016#comment-2312 Good points. I'd like to use a SlingCatcher (now, that's a call out for a demo unit...:).....to see how someone would actually use it and why. The Slingbox makes perfect sense to me, although I think the audience is limited. The Slingcatcher? Well, we'll see but, then again, the distribution and consumption of TV is changing so anything is possible. Good points. I’d like to use a SlingCatcher (now, that’s a call out for a demo unit…:)…..to see how someone would actually use it and why. The Slingbox makes perfect sense to me, although I think the audience is limited. The Slingcatcher? Well, we’ll see but, then again, the distribution and consumption of TV is changing so anything is possible.

]]> By: Ryan Coleman http://www.markevanstech.com/2007/01/07/slingcatchers-ces-dreams/#comment-2311 Ryan Coleman Sun, 07 Jan 2007 21:02:42 +0000 http://markevanstech.com/?p=2016#comment-2311 Hey Mark, At first I was scratching my head as well (how will they get the ROI on this?) - and admittedly even at the concept of using it as a receiver for youtube videos. (I've got an $80 Vid Card in an older PC that does that). The link you provided though spells it all out (and a Tivo-killer at the same time). My biggest beef with my PVR at home is I can't watch it upstairs in my bedroom. If Dave Zatz is describing it right SlingCatcher means rather then buying/renting 3 PVRs for the house (and invariably what I want to watch will be on a different unit) I can instead buy/rent a PVR, then buy a Slingbox and a couple of catchers. This quickly becomes a way to get them beyond the 1 house 1 unit challenge. I think too though, like Tivo, hardware isn't where their future is. If Slingbox ever manages to swing a deal with the PVR manufacturers to OEM their technology right into the PVR units things will get very, very interesting. Hey Mark,

At first I was scratching my head as well (how will they get the ROI on this?) - and admittedly even at the concept of using it as a receiver for youtube videos. (I’ve got an $80 Vid Card in an older PC that does that).

The link you provided though spells it all out (and a Tivo-killer at the same time). My biggest beef with my PVR at home is I can’t watch it upstairs in my bedroom. If Dave Zatz is describing it right SlingCatcher means rather then buying/renting 3 PVRs for the house (and invariably what I want to watch will be on a different unit) I can instead buy/rent a PVR, then buy a Slingbox and a couple of catchers.

This quickly becomes a way to get them beyond the 1 house 1 unit challenge. I think too though, like Tivo, hardware isn’t where their future is. If Slingbox ever manages to swing a deal with the PVR manufacturers to OEM their technology right into the PVR units things will get very, very interesting.

]]> By: Slava http://www.markevanstech.com/2007/01/07/slingcatchers-ces-dreams/#comment-2310 Slava Sun, 07 Jan 2007 20:07:36 +0000 http://markevanstech.com/?p=2016#comment-2310 Umm... 200,000 sounds like a pretty reasonable number of products to sell. You seriously don't think that there's a market for at least a million of these SlingThings? Umm… 200,000 sounds like a pretty reasonable number of products to sell. You seriously don’t think that there’s a market for at least a million of these SlingThings?

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