TiVo to Test Free DVRs?

[dkennedy]

TiVo to Test Free DVRs?

February 28, 2006

By Phillip Swann, tvpredictions.com

TiVo CEO Tom Rogers told a Reuters technology summit yesterday that his company will likely soon test giving away its Digital Video Recorders. The executive said customers would probably have to agree to higher subscription prices and/or longer-term commitments.

Some TiVo supporters are saying the plan would generate new subs because people would love the DVR service if they would just try it.

However, Rogers' revelation suggests the company's future may be even darker than we thought.

TiVo now has approximately four million subscribers, but nearly 70 percent come from the DIRECTV audience. And the satellite TV service decided last October to stop marketing TiVo, which means the company's subscription growth will soon dramatically slow.

With the loss of DIRECTV, TiVo has been aggressively seeking new partnerships with other TV providers, such as the cable TV operators. But, to date, it has only reached an agreement with Comcast. And that non-exclusive deal will not go into effect until late this year.

So the free DVR idea would seem to signal that TiVo doesn't expect to get any help for the rest of the year. The company will have to generate new subs at retail, which is why it's considering giving away the boxes.

However, the giveaway plan seems unlikely to work. DIRECTV already offers a free DVR (with a rebate) and the cable TV operators lease their DVR receivers to their customers. So the concept of a free DVR is not likely to get anyone excited.

[dkennedy]

TiVo may test giving away boxes

February 27, 2006

Reuters News Release

TiVo, the television recording technology company that is facing increasing competition, Monday said it is considering giving away TiVo set-top boxes as part of plans to win subscribers.

Chief Executive Tom Rogers said the company, whose name has become synonymous with the ability to pause live television and skip commercials, was close to offering a range of pricing options, including one plan that would include a free set-top box.

"We're continuing to pursue the prospects of zero upfront and all upfront" pricing, Rogers told the Reuters Global Technology, Media and Telecoms Summit in New York.

The company is likely to begin the test to offer free boxes, possibly in exchange for higher priced and longer term plans, fairly soon, said Rogers, who was named chief executive last July.

TiVo currently serves about 4 million subscribers, including about a two-thirds from partner DirecTV Group Inc.. It is under pressure from Wall Street to expand its customer base as DirecTV is readying its own digital video recorders.

TiVo also faces competition from far bigger cable and satellite TV providers and consumer electronics makers, all of whom are offering rival digital video recorders to consumers. Many of the devices are more powerful than TiVo's and are offered at lower prices — sometimes for free.

The company says its service, which costs most users about $13 a month, is superior, thanks to options such as a system that is easy for consumers to use.