the set-top box will not cost more that 50.000 escudos (about 250 Euro), but is can also be rented,
the service will not cost more that 5.000 monthly fee (about 25 Euro).
Regarding the TV Cabo’s objectives in terms of subscribers, at first sight the figures seem to be quite high for a country such as Portugal:
100.000 subscribers until the end of the year 2001,
1 million subscribers in three to five years.
Another big question is - this turn for the broadcasters, content providers and advertisers - how much it will cost? Or better said, who is going to pay all this? Even if the subscriptions fees and the set-top box (sold or rent) will help paying the investment made in the Interactive Television development and launching, it will be the indirect revenues that will generate most of the revenues, as Álvaro Peixoto mentioned to “Exame Digital”:
“The TV Cabo Interactiva business will result from the indirect revenues generated by electronic–commerce and advertising associated to the service”
Still, the first step is to “put” the set-top boxes in as many households as possible, since without a substantial number of distributed devices no significant revenues form e-commerce and advertising will be generated. Price is the major issue. Many of the industry players interviewed considered price as a critical factor of success, since most people may not be interested in paying a reasonable amount of money to acquire the box.