TiVo to bundle DVRs with subcriptions
TiVo resets box plan
March 9, 2006
While narrowing its quarterly losses, TiVo Inc. on Wednesday announced new pricing for its digital video recorders that bundle long-term subscriptions with the cost of the set-top box.
The company also said that it has signed Radio Shack as its newest retail partner, a decision that TiVo CEO Tom Rogers said was spurred by TiVo's recently announced KidZone initiative that lets parents collect child-appropriate television shows.
The company reported losing $19.5 million in its fiscal fourth quarter ending Jan. 31, an improvement compared with the $33.7 million the company lost a year ago.
Revenue rose from $59.4 million a year ago to $60.1 million, while service and technology revenue, which strips away hardware sales, surged from $34.2 million a year ago to $47 million.
TiVo added 356,000 net new subscribers during the quarter, with 173,000 of them coming via its relationship with DirecTV that will end next year.
DirecTV already has begun to embrace DVRs from NDS Corp. instead of TiVo, which has Wall Street analysts nervous about TiVo's future.
Rogers sought to ease such concerns during a conference call Wednesday where he talked up TiVo's relationship with Comcast Corp. where users of Comcast's generic DVR will be able to get TiVo via a software upgrade, negating the need for a new set-top box.
The Comcast initiative will begin this year and Rogers said he is in solid discussions with other cable providers.
Rogers said he is cheering for more cable subscribers to opt for boxes with built-in DVRs so that in the near future they can similarly upgrade to TiVo via software patch.
The chief executive also said that a jury has been selected and its trial against EchoStar Communications should begin this month. TiVo maintains that the DVR offered by EchoStar's Dish satellite TV service infringes on some of TiVo's patents.
As for new pricing, TiVo said that those who purchase the service on its Web site can get a box and one year of service for $224. A box and two years will cost $369 and a box with three years runs $469.
Rogers said that, judging from significant test-marketing, the prices will appeal to subscribers of analog cable TV services, a segment where TiVo has little to no competition.
TiVo's results were mostly in line with analysts' expectations and shares advanced modestly in after-hours trading after falling a dime to $5.75 during the regular session Wednesday.
TiVo said that in it current quarter, it forecasts as much as $50 million service and technology revenue and a net loss of as much as $22 million.
The company also said that it has signed Radio Shack as its newest retail partner, a decision that TiVo CEO Tom Rogers said was spurred by TiVo's recently announced KidZone initiative that lets parents collect child-appropriate television shows.
The company reported losing $19.5 million in its fiscal fourth quarter ending Jan. 31, an improvement compared with the $33.7 million the company lost a year ago.
Revenue rose from $59.4 million a year ago to $60.1 million, while service and technology revenue, which strips away hardware sales, surged from $34.2 million a year ago to $47 million.
TiVo added 356,000 net new subscribers during the quarter, with 173,000 of them coming via its relationship with DirecTV that will end next year.
DirecTV already has begun to embrace DVRs from NDS Corp. instead of TiVo, which has Wall Street analysts nervous about TiVo's future.
Rogers sought to ease such concerns during a conference call Wednesday where he talked up TiVo's relationship with Comcast Corp. where users of Comcast's generic DVR will be able to get TiVo via a software upgrade, negating the need for a new set-top box.
The Comcast initiative will begin this year and Rogers said he is in solid discussions with other cable providers.
Rogers said he is cheering for more cable subscribers to opt for boxes with built-in DVRs so that in the near future they can similarly upgrade to TiVo via software patch.
The chief executive also said that a jury has been selected and its trial against EchoStar Communications should begin this month. TiVo maintains that the DVR offered by EchoStar's Dish satellite TV service infringes on some of TiVo's patents.
As for new pricing, TiVo said that those who purchase the service on its Web site can get a box and one year of service for $224. A box and two years will cost $369 and a box with three years runs $469.
Rogers said that, judging from significant test-marketing, the prices will appeal to subscribers of analog cable TV services, a segment where TiVo has little to no competition.
TiVo's results were mostly in line with analysts' expectations and shares advanced modestly in after-hours trading after falling a dime to $5.75 during the regular session Wednesday.
TiVo said that in it current quarter, it forecasts as much as $50 million service and technology revenue and a net loss of as much as $22 million.
Share on LinkedIn
