Monday, December 3, 2007

IPTV Revenue for hardware, software, and STB

This is a response to Tigre and Shadow's discussion regarding Unit costs for UTs IPTV system.

Tigre concluded that per line hardware cost on the average is $15-20, $20-25 for software, and $80 for STB. From the Q&A session, we found out that per line cost is $10-30. I would assume this is for hardware and that STB is over $100. In addition, iptv GMs were 40-45% without STB and the STB was under 20%.

Just some rough estimates on the $240m in total iptv revenues that UT reported for 500k subscribers and 2m system capacity. Using $45 per line cost and $120 for the STB, I get the following:

2mil*$45 = $90m
$150m/$120 = 1.25m STB as part of the overall iptv revenue

Using 15% GMs for STB and 42.5% GMs for iptv hardware/software leads to

$150m(.15) + $90m(.425) = 60.75m in gross profits or 25% overall GMs.

Its in the overall ballpark of the GMs discussed all along. I'd like to commend Tigre and Shadown once again for bringing up an important topic and for zoning in on some proper numbers.

No comments: