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Thread: Austar HD

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    Default Austar HD

    Does anyone have any idea when Austar are going to announce pricing for the new services. With two less HD channels than Foxtel, it will be interesting to see how they structure their packages.



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    If it's anything like the first time round, we'll be waiting a while for pricing, because the hardware won't be ready for a long time yet.
    I reckon it'll be $19.95/month on top of our subscription.
    If we didn't have these bullshit "regulations", we'd have signed up for poxtel ages ago. Better package deals etc. But because we're classed as second rate citizens, I mean "regional" citizens, we have what we have.

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    I'm thinking more in terms of whether they will allow you to deduct some of the SD packages to make the HD more affordable. Notice that on the Foxtel packages you can get the lot for $116 (but no SD movie and sport packages which means that you miss out on Movie Greats, Showtime Greats, World Movies, Eurosport, National Geographic) which would do me fine.

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    I doubt there will be any 'allowances or deductions'.

    There is more likely to be an 'HD add-on' package... at additional cost of course.

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    Nov 15 seems to be the date being bandied about for both Foxtel and Austar.
    They have run the odd announcement that appears to be supported by both companies.

    I am still curious to see who is going to fund Austar to do this.

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    There is more likely to be an 'HD add-on' package... at additional cost of course.
    Yep, standard marketing technique. For the first few months after a new product launch companies structure their product line to extract maximum profit.

    They get away with this for several reasons.
    • Enthusiasm. The novelty value of new technology makes buyers less rational and more inclined to "treat themselves" regardless of cost. Shopping for shiny new toys is pleasurable and anticipation of that buzz raises buyer's price tolerance.
    • Ignorance. Buyers don't know what to expect until they've seen it, hence they have no idea of market value. Whatever the price, the buyer still assumes he'll be getting their money's worth.
    • Hype. Pre-launch marketing of pricey products always puts best possible spin, setting high expectations. Buyers belief about product content and quality is usually more favourable before launch than it is after.
    • Pride. People love to have the latest and best, to be able to show it off and boast to their mates. It gives a reassuring sense of achievement (even if bought on credit). People will often do foolish things in order to feel like they've had a 'win', as frequently seen at auctions.


    The most common strategy is to charge like a wounded bull for the first 6 months until all the eager and impatient early adopters have been waited out, and then reduce prices to what the market has realised is reasonable. We see this with most in-demand consumer products, especially game consoles, games, DVD releases of blockbuster movies, and Harry Potter books.

    Another trick is to configure the product tiers so that buyers must first purchase unrelated & unwanted stuff before they're allowed to buy the thing they really want. We often see this with laptops and software packages, where the new novelty feature you really want - that shouldn't really be very expensive - is only available in the most expensive deluxe model. This is also a favourite of the Pay TV companies, obviously, who only let us buy movies or sport if we first buy a showbag of dregs they otherwise couldn't sell.

    A third trick is to delineate product tiers or delivery channels that are progressively released, starting with the most expensive. We see this with book publishers who produce both hardcover and softcover versions but for the first year only the hardcover is offered. And we see it with movies: first in multiplexes, then airlines, then DVD sales and rental, then pay tv, then FTA. (And then back to pay tv, then Channel 9, then GO!, then back to pay tv again.)

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