http://biz.yahoo.com/ap/060308/earns_tivo.html?.v=3
AP
TiVo Announces New Pricing Structure
Wednesday March 8, 6:48 pm ET
By May Wong, AP Technology Writer
TiVo Narrows 4th-Quarter Losses in Line With Wall Street Views, Rolls Out New Pricing Structure
SAN JOSE, Calif. (AP) -- As it struggled to gain new subscribers, TiVo Inc., the maker of the popular set-top digital video recorder, on Wednesday reported narrower fourth-quarter losses in line with Wall Street expectations.
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To attract more subscribers and boost sales, TiVo also announced a new pricing structure similar to cell phone service schemes: subscribers would no longer have to pay upfront for the set-top-box but would face only charges based on the length of a service contract.
For the three months ended Jan. 31, the DVR pioneer said it lost $19.5 million, or 23 cents per share, compared to the year-ago loss of $33.7 million, or 42 cents a share.
Revenue rose slightly to $60.1 million from $59.4 million in the quarter last year.
Analysts were expecting the Alviso, Calif.-based company to post revenue of $46.4 million, according to Thomson Financial.
TiVo said it acquired 356,000 new subscribers in the fourth quarter, compared to 698,000 in the year-ago period. About 173,000 of those new accounts were from DirecTV satellite TV subscribers, instead of consumers who purchased TiVo's standalone DVRs.
But that long-running relationship with DirecTV is set to end next year as the satellite TV company switches to a different DVR platform. And the competition continues to heat up from other cable and satellite TV operators now offering their own DVR services -- usually at lower prices.
DVRs record shows onto a hard disk while allowing users to pause TV broadcasts and fast-forward past commercials.
"This was a steady quarter for TiVo as our subscription base continued to grow, even in this more competitive environment," TiVo CEO Tom Rogers said.
TiVo, which now has more than 4.4 million subscribers, has been adding new features and is expanding its service beyond set-top-boxes to cell phones and portable digital players to help differentiate itself.
It also has a deal with Comcast Corp., though details of how the cable TV titan will incorporate TiVo's technology into its services remains to be seen. A TiVo-based Comcast set-top-box is expected to released in the second half of 2006.
Under TiVo's new pricing plans to be launched next week, subscribers will not have to pay for a DVR box, which currently costs about $50 after rebates. Instead, they will pay $19.95 a month, or $224 prepaid, for a one-year commitment; $18.95 a month, or $369 prepaid, for a two-year commitment; and $16.95 a month, or $469 prepaid, for a three-year commitment.
The new pricing plan will be available initially only to customers who sign up via TiVo.com. Customers attained through retail stores will still face the current prices and service fees, though TiVo is working to apply the same new pricing plan for retail customers.
TiVo's previous product-lifetime service subscription fee of $299 will be eliminated, the company said.
For the fiscal year, TiVo said it had a net loss of $34.4 million, or 41 cents a share, compared to a net loss of $79.8 million, or 99 cents a share in fiscal 2005.
For the current first fiscal quarter, TiVo said it expects revenues in the range of $48 million to $50 million and a net loss of $19 million to $22 million.
Analysts were expecting a loss of $2.1 million, or 3 cents a share, on revenue of $50.3 million.
The wider-than-projected net loss for the current quarter stems from expectations of "significant" legal costs for the upcoming jury trial of TiVo's patent infringement case against EchoStar Communications Corp., TiVo officials said during a conference call to analysts.
"While we fully recognize the challenges we face, we believe we could continue growing," Rogers said during the call.
The company has pegged losses throughout most of its eight-year history, though it did break even on a per-share basis in its last fiscal second quarter.
Shares of TiVo fell 10 cents, 1.7 percent, to close at $5.75 Wednesday on the Nasdaq Stock Market. The stock was unchanged in late trading, after the report was released
AP
TiVo Announces New Pricing Structure
Wednesday March 8, 6:48 pm ET
By May Wong, AP Technology Writer
TiVo Narrows 4th-Quarter Losses in Line With Wall Street Views, Rolls Out New Pricing Structure
SAN JOSE, Calif. (AP) -- As it struggled to gain new subscribers, TiVo Inc., the maker of the popular set-top digital video recorder, on Wednesday reported narrower fourth-quarter losses in line with Wall Street expectations.
ADVERTISEMENT
To attract more subscribers and boost sales, TiVo also announced a new pricing structure similar to cell phone service schemes: subscribers would no longer have to pay upfront for the set-top-box but would face only charges based on the length of a service contract.
For the three months ended Jan. 31, the DVR pioneer said it lost $19.5 million, or 23 cents per share, compared to the year-ago loss of $33.7 million, or 42 cents a share.
Revenue rose slightly to $60.1 million from $59.4 million in the quarter last year.
Analysts were expecting the Alviso, Calif.-based company to post revenue of $46.4 million, according to Thomson Financial.
TiVo said it acquired 356,000 new subscribers in the fourth quarter, compared to 698,000 in the year-ago period. About 173,000 of those new accounts were from DirecTV satellite TV subscribers, instead of consumers who purchased TiVo's standalone DVRs.
But that long-running relationship with DirecTV is set to end next year as the satellite TV company switches to a different DVR platform. And the competition continues to heat up from other cable and satellite TV operators now offering their own DVR services -- usually at lower prices.
DVRs record shows onto a hard disk while allowing users to pause TV broadcasts and fast-forward past commercials.
"This was a steady quarter for TiVo as our subscription base continued to grow, even in this more competitive environment," TiVo CEO Tom Rogers said.
TiVo, which now has more than 4.4 million subscribers, has been adding new features and is expanding its service beyond set-top-boxes to cell phones and portable digital players to help differentiate itself.
It also has a deal with Comcast Corp., though details of how the cable TV titan will incorporate TiVo's technology into its services remains to be seen. A TiVo-based Comcast set-top-box is expected to released in the second half of 2006.
Under TiVo's new pricing plans to be launched next week, subscribers will not have to pay for a DVR box, which currently costs about $50 after rebates. Instead, they will pay $19.95 a month, or $224 prepaid, for a one-year commitment; $18.95 a month, or $369 prepaid, for a two-year commitment; and $16.95 a month, or $469 prepaid, for a three-year commitment.
The new pricing plan will be available initially only to customers who sign up via TiVo.com. Customers attained through retail stores will still face the current prices and service fees, though TiVo is working to apply the same new pricing plan for retail customers.
TiVo's previous product-lifetime service subscription fee of $299 will be eliminated, the company said.
For the fiscal year, TiVo said it had a net loss of $34.4 million, or 41 cents a share, compared to a net loss of $79.8 million, or 99 cents a share in fiscal 2005.
For the current first fiscal quarter, TiVo said it expects revenues in the range of $48 million to $50 million and a net loss of $19 million to $22 million.
Analysts were expecting a loss of $2.1 million, or 3 cents a share, on revenue of $50.3 million.
The wider-than-projected net loss for the current quarter stems from expectations of "significant" legal costs for the upcoming jury trial of TiVo's patent infringement case against EchoStar Communications Corp., TiVo officials said during a conference call to analysts.
"While we fully recognize the challenges we face, we believe we could continue growing," Rogers said during the call.
The company has pegged losses throughout most of its eight-year history, though it did break even on a per-share basis in its last fiscal second quarter.
Shares of TiVo fell 10 cents, 1.7 percent, to close at $5.75 Wednesday on the Nasdaq Stock Market. The stock was unchanged in late trading, after the report was released
