Tivo may have created Seppuku

in General Discussion edited January 2014

ALVISO, CA ? March 8, 2006 ? TiVo Inc. (NASDAQ: TIVO ), the creator of and a leader in television services for digital video recorders (DVR), today announced new, simplified pricing plans that will make it easier for consumers to add TiVo to their home entertainment experience. For the first-time ever, through TiVo's direct sales channel, customers will be able to bundle together the purchase of their TiVo® 80-hour Series2® box and service at an all-in-one price, based on a one-, two-, or three-year commitment. There will be no separate price for the TiVo unit and TiVo® service. The specific bundle prices that will be available at www.tivo.com or by calling 1-877-BUY- TIVO are:

The price for a TiVo box and a one-year service commitment is $19.95 a month or $224 prepaid

The price for a TiVo box and a two-year service commitment is $18.95 a month or $369 prepaid

The price for a TiVo box and a three-year service commitment is $16.95 a month or $469 prepaid

TiVo developed these new pricing plans after completing market research among new and existing TiVo subscribers and by conducting extensive testing of the pricing options with randomized group of consumers in the marketplace. The results of the research were overwhelmingly favorable to the bundling together of the TiVo unit and TiVo service. As is the case with subscribing to the TiVo service today, an early cancellation fee will apply if service is terminated prior to the end of the chosen period. In the case of prepaid subscriptions, no refund will be made upon early termination.

"Over the past several months, we have done extensive research on our pricing strategy and distribution model with a focus on finding the simplest and most efficient way to increase sales and drive penetration of the TiVo service among consumers," said Tom Rogers, CEO of TiVo. "After extensive testing and evaluation of various pricing and packaging approaches, we will launch a subscription option that combines the sale of the TiVo service together with the TiVo box. This is great for TiVo subscribers who will now have the ability to get TiVo service with no upfront hardware costs."

As part of the announcement, TiVo is also announcing an update to its service-only options, providing consumers that purchase a TiVo unit at a retail outlet with the option to pre-pay for one-, two-, or three-years of TiVo service. The product lifetime service option will be eliminated next week. With the ability to pre-pay for TiVo service, TiVo is standing by its efforts to deliver choice to its customers and continuing to spread the "TiVo, TV Your Way" message.

"We are committed to providing our customers a great value for their dollar and enhancing our ability to add subscribers through more flexible pricing options," said Mr. Rogers.

The changes to the pricing structure and service-only options will launch next week. The changes will not affect TiVo's current base of subscriptions.

Damn watching TV just gets more and more expensive. I need a new hobby.


  • Reply 1 of 8
    groveratgroverat Posts: 10,872member
    Cable/Satellite providers are starting to provide their own DVRs. Once that becomes the standard TiVO won't have a market anymore.
  • Reply 2 of 8
    kickahakickaha Posts: 8,760member
    And as the networks give way to on-demand, DVRs in general won't have a market anymore, is my guess.
  • Reply 3 of 8
    groveratgroverat Posts: 10,872member
    Live TV is never going to go away. DVR and on-demand are not mutually exclusive.
  • Reply 4 of 8
    kickahakickaha Posts: 8,760member

    Originally posted by groverat

    Live TV is never going to go away. DVR and on-demand are not mutually exclusive.

    Live is cacheable by the provider, and if you know ahead of time that you want to watch something as it happens, sit down and order it up. Pay-per-view sports already works like that. You want to see it after the fact, order it up. Want to pause it, do so. Kind of like a DVR, isn't it?

    You're right that they're not mutually exclusive, but ubiquitous on-demand will make DVRs pretty irrelevant, IMO. It's still going to take a while, but that's where it's headed.
  • Reply 5 of 8
    curiousuburbcuriousuburb Posts: 3,325member
    Meanwhile, Apple is morphing iTVS into a subscription model...

    iTunes to sell monthly subscription shows.

    First backtracking on integrated graphics, now backtracking on a subscription model... \
  • Reply 6 of 8
    kickahakickaha Posts: 8,760member
    I'd really love to strangle the person who first called it a subscription. Think boxed set, not Napster subscription. No backtracking that I can see.
  • Reply 7 of 8
    chris cuillachris cuilla Posts: 4,825member
    I have a TiVO. I love it. I think TiVO will be out of business in 2-3 years (at least with their current model).

    They don't "own" or "control" anything of value.

    The cable companies and stuff like what Apple is trying to do will kill them.

    I only hope I have an option (besides the cable company) before they bite the dust. Perhaps I should just dump TV. What could I do with all that time?
  • Reply 8 of 8
    bwhalerbwhaler Posts: 260member
    While I am not happy about this model, I suspect I would pay it if:

    1. Tivo had a better OS and user experience

    2. They get rid of the Tivo advertisements.

    3. True Mac support.

    4. Allow Mac folks to put Tivo content on their iPods.

    I am willing to pay a premium, but not for more ads. If that is the case, I'd rather pay Comcast 9 bucks a month, and deal with their crappy interface...
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