DirecTV plans to stop marketing TIVO

[rtt2]

Tivo Shares Hit by DirecTV Plans

NEW YORK (Reuters) - TiVo Inc. <TIVO.O> shares fell as much as 8.5 percent in heavy trading on Thursday, a day after DirecTV Group Inc. <DTV.N> said it plans to stop marketing TiVo's digital video recorders later this year.

DirecTV said it was part of a wider plan to replace TiVo's technology, which allows users to pause and rewind live TV, with technology created by News Corp. <NWS.N>, DirecTV Chief Executive Chase Carey told the Reuters Telecommunications, Cable and Satellite Summit on Wednesday.

DirecTV is TiVo's single largest customer and accounts for two-thirds of TiVo's total subscribers.

"The product we will market is our product," DirecTV Chief Executive Chase Carey said at in New York.

"TiVo has some significant challenges going forward," said Hoefer & Arnett analyst April Horace, who noted that DirecTV accounts for 12.5 percent of TiVo's revenue. "And that's all high-margin revenue, because they don't spend a lot on subscriber acquisition costs for DirecTV customers."

TiVo shares were down 30 cents, or nearly 5 percent, to $5.68 in mid-morning trading on the Nasdaq, after trading as low as $5.48.

By October, the top U.S. satellite television operator plans to begin selling a new digital video recorder and set-top box that will feature technology made by NDS Group Plc <NNDS.O>, a company that shares a controlling shareholder with DirecTV in News Corp.

News Corp. owns a 34 percent stake in DirecTV.

 

[rtt2]

TiVo takes a hit on DirecTV plans

Jeff Baumgartner

Shares of TiVo Inc. sank 7.51 percent to $5.54 apiece in early trading Thursday following a report from Reuters that said DirecTV, citing company CEO Chase Carey, plans to stop marketing receivers with on-board TiVo digital video recorders (DVRs) later this year.

The news doesn't come as a big surprise, as DirecTV has already said it will reduce its reliance on TiVo technology in favor of a DVR platform from NDS Group. A DirecTV receiver powered by NDS' DVR software is expected to roll out this fall. News Corp. owns big chunks of both DirecTV and NDS.

TiVo's partnership with DirecTV has been a major driver of new subscribers for the DVR pioneer. TiVo ended the first quarter with 3.3 million subscribers, of which 2.1 million were from DirecTV. In that period, 247,000 of TiVo's 319,000 net new subs also came from DirecTV.

Despite its de-emphasized relationship with DirecTV, TiVo has made recent strides in the cable sector. In March, the company scored its first cable deal, with Comcast Corp., and, earlier this month, announced it would market DVR technology as a stand-alone service to small- and mid-sized cable operators that are members of the National Cable Television Cooperative (NCTC). Benton Cablevision of Rice, Minn., was the first NCTC member to take TiVo up on the offer.

 

[Plywodstatebum]

Thats too bad, They will never make a DVR as good as TIVO's no matter how hard they try. Others have tryed and failed...

 

[riggscm]

Does NDS have a cute lil logo like the "Tivo Dude"? Thats really all I care about.

 

[mhking]

So my Tivo will become a boat anchor?

 

[riggscm]

So my Tivo will become a boat anchor?

I believe D* will continue to support its current Tivo users for a while.

 

[DTV-T2-Tech]

We still support tivo users as will still sopport ult. tv users. we have millions of dtv tivo's out there

 

[rtt2]

Yea the article says that there are 2.1 million DirecTivos out there. I imagine DirecTV will support them for a while. But the MPEG4 receivers will be NDS receivers and people will slowly very slowly migrate away from the TiVo platform.

 

[Plywodstatebum]

So they screw us again!!! If we stay with the TIVO it will only be mpeg/2,, If we want mpeg/4 Then will have to buy there DVR which will have enough bugs that a exterminator won't be about to fix it. And for those that have stand alone TIVO's this may be the blow that breaks TIVO's back, So in the next few years TIVO will go out of business. And another great idea gets screwed out of business. When will Companys start working together and thinking about the customer instead of there pockets? Sorry I lost my mind for a sec.

 

[jpn]

So they screw us again!!! If we stay with the TIVO it will only be mpeg/2,, If we want mpeg/4 Then will have to buy there DVR which will have enough bugs that a exterminator won't be about to fix it. And for those that have stand alone TIVO's this may be the blow that breaks TIVO's back, So in the next few years TIVO will go out of business. And another great idea gets screwed out of business. When will Companys start working together and thinking about the customer instead of there pockets? Sorry I lost my mind for a sec.

Personally, I prefer not to pay the TiVO subscription fees. I have no problems setting up my own recordings.

D* or not, TiVO units have always been prone to becoming doorstops if their guide goes offline (like bankruptcy). A generic PVR has more flexibility. I've actually got a ReplayTV unit.... it gets its guide via broadband, and with freeware programs I can control it over the web. I've scheduled recordings from work on occasion. And if the Replay guide goes away it can be programmed manually (without the guide). Limitation is that it's SD.

I'm anxious to see exactly what D* will offer for its HD DVR, and would probably give it a shot if it doesn't add a subscription fee (already paying for D* program guide).

 

[obeythelaw]

If you think about, though, who's to say that the Directv DVR's won't offer the same functionality as the Tivo? I mean, Tivo hasn't patented the function of the Tivo. Its essentially an update modern VCR. As long as I can setup "wishlists" and pause live tv and fast forward commercials AND the DirecTV DVR isn't buggy then I think I'll be fine.

 

[lou_do]

I believe D* will continue to support its current Tivo users for a while.

When they change over to the new MPEG-4 format, the current DVRs (that use TiVo technology) won't work, will they?

 

[LOBO2999]

Here's a question, I have a lifetime subscription to tivo will it carrie over if I were to go with the new receivers? If not I will be pissed .

 

[VewDew]

Here's a question, I have a lifetime subscription to tivo will it carrie over if I were to go with the new receivers? If not I will be pissed .

Actually, I doubt it will because as I understand it when I was looking into the lifetime, it's the lifetime of the receiver, not the lifetime of the subscriber.

 

[hongcho]

------
Tivo hasn't patented the function of the Tivo.
------

TiVo will say otherwise as they are on their first legal battle with Echostar. I think I can still look up their patent portfolio related to DVRs if you'd like.

Hong.

 

[lee78221]

as long as I can still use my Tivo's I do not give a dam what DIRECTV's marketing

 

[mpar1]

Actually, I doubt it will because as I understand it when I was looking into the lifetime, it's the lifetime of the receiver, not the lifetime of the subscriber.

With D* your lifetime subscription is tied to your account. As a lifetime Tivo subscriber, I am not optomistic that my sub will convert to D*'s box.

 

[CWS_kahuna]

With D* your lifetime subscription is tied to your account. As a lifetime Tivo subscriber, I am not optomistic that my sub will convert to D*'s box.

I just experienced this. I had an old Sony DTivo that I bought the lifetime subscription on. It eventually died and at the time I was told the subscription was for that box only, I was pretty bummed and I went Tivoless for a year or so. When the R10 came out it was getting such good praise and the price was right for me I decided to get another Tivo. I had been paying the $4.99 a month when I saw someone state that the lifetime was for the account not the box, I decided to call D*. Well after talking to about 5 people they got my lifetime subscription added back to my account and credited me all the $4.99 fees I had been paying since I got the R10 (just in time too as the price is now $5.99 a month for DVR).

I asked them about the new DVRs and if the subscription would cut over and they did not have an answer. The guy I mainly spoke with felt that D* should honor the lifetime subscribers but felt it was a 50/50 shot if they would or not. I am guessing that in the Standard Def world my R10 will still work for quite some time as I don't expect the SD channels to be Mpeg 4 anytime soon.

 

[LOBO2999]

I was told it was to the account as well.

 

[miguelaqui]

Does anybody know if the new DVRs will have a monthly fee?

I was told, when I worked in the bis. that D* only charged that b/c Tivo charges them, understandable

At the time, E* did not charge the DVR fee, then, a few months later, they started that random fee.

I was just wondering if D* would be greedy and still charge the fee, although Tivo will no longer be there.