Thanks for the math correction. Edited my post to reflect the right numbers for future reference.
said by Greg2600:
And then we're back to square one, which is why aren't they moving MPEG2 to 4????
Because there are 6 series STBs out there that can't run MPEG4. So, like I said, the strategy appears to be to offer new channels in MPEG4 in the short term so the transition can occur without a massive reclamation effort or a service interruption.
As others have noted, future STB technology will allow Verizon to significantly reduce the burden of multiple STBs per home, so I doubt they are planning to make a big push for MPEG4 until more palatable options are on the table.
If anything, I could see them moving the premiums to MPEG4, since the reclamation effort required would be limited.