Tivo

[Sharpie]

This probably means nothing but I thought it was interesting



"TiVo said its DirecTV base of more than 1.4 million would grow 575,000 to 700,000 last quarter. But while DirecTV supplies 61% of TiVo's subscriptions, those produce just 10% of its revenue. TiVo gets about $1.25 a month of the $5 that DirecTV subscribers pay for TiVo service. Buyers of a TiVo stand-alone unit pay $13 a month or a one-time fee of $300."

 

[dbronstein]

Sounds reasonable. The problem is that there isn't any growth left in stand alone market, and SA revenue will probably start to decline soon. As more cable companies roll out their own DVRs, people are going to switch because they are cheaper (a free box and lower monthly fee) and they have two tuners. Even if they aren't as "good" as Tivo, people will be willing to make the tradeoff.

 

[Stargazer]

So Tivo is learning that sometimes bulk is not better. Perhaps they were not going to even get that much from the cable company so they turned them down.

Tivo is hoping with their software enhancements that they will offer features that the others will not offer to be able to get more subscribers that way. With what they get from each subscriber on the standalone that would be just as good as around a dozen DirecTv subscribers.

 

[dbronstein]

Tivo can offer all the enhancements and features they want. But the only ones that are going to matter to most people are 2 tuners and an integrated box. And then they are still going to have to convince people that the other features are worth paying for, since having to buy the box and pay the tivo fee is still going to be more than the cable companies charge.

The biggest loss of Tivo by backing out of the cablevision deal was the chance to expose people to their software. It's like the Beta/VHS problem - Beta was the superior format but Sony blew the marketing. Tivo's doing the same thing.

 

[rickaren]

Well I was shocked to see them promote the TiVo upgraded 6.2 software on their Web Site. I didn't think they would offer any more, instead pushing their own DVR later this year. It just shows you competition is good, in this case cable TV. Once they launch their own DVR, I suspect that will be the last if any up-grades (if any are avaiable) since they control them!

 

[colofan]

It seems to me that Tivo will be bought out by some CE company and rolled into a HTPC type of configuration. Broaden out the possibilites to include off line material as well as on line. Tivo could win by showing better ease of use versus microsofts HMO.

Now who would by Tivo? CEO and President are gone...hmmm