TiVo New Priceing and Dish Patent Infringement (1 Viewer)

Poke

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Dec 3, 2003
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http://biz.yahoo.com/ap/060308/earns_tivo.html?.v=3

AP
TiVo Announces New Pricing Structure
Wednesday March 8, 6:48 pm ET
By May Wong, AP Technology Writer
TiVo Narrows 4th-Quarter Losses in Line With Wall Street Views, Rolls Out New Pricing Structure


SAN JOSE, Calif. (AP) -- As it struggled to gain new subscribers, TiVo Inc., the maker of the popular set-top digital video recorder, on Wednesday reported narrower fourth-quarter losses in line with Wall Street expectations.
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To attract more subscribers and boost sales, TiVo also announced a new pricing structure similar to cell phone service schemes: subscribers would no longer have to pay upfront for the set-top-box but would face only charges based on the length of a service contract.

For the three months ended Jan. 31, the DVR pioneer said it lost $19.5 million, or 23 cents per share, compared to the year-ago loss of $33.7 million, or 42 cents a share.

Revenue rose slightly to $60.1 million from $59.4 million in the quarter last year.

Analysts were expecting the Alviso, Calif.-based company to post revenue of $46.4 million, according to Thomson Financial.

TiVo said it acquired 356,000 new subscribers in the fourth quarter, compared to 698,000 in the year-ago period. About 173,000 of those new accounts were from DirecTV satellite TV subscribers, instead of consumers who purchased TiVo's standalone DVRs.

But that long-running relationship with DirecTV is set to end next year as the satellite TV company switches to a different DVR platform. And the competition continues to heat up from other cable and satellite TV operators now offering their own DVR services -- usually at lower prices.

DVRs record shows onto a hard disk while allowing users to pause TV broadcasts and fast-forward past commercials.

"This was a steady quarter for TiVo as our subscription base continued to grow, even in this more competitive environment," TiVo CEO Tom Rogers said.

TiVo, which now has more than 4.4 million subscribers, has been adding new features and is expanding its service beyond set-top-boxes to cell phones and portable digital players to help differentiate itself.

It also has a deal with Comcast Corp., though details of how the cable TV titan will incorporate TiVo's technology into its services remains to be seen. A TiVo-based Comcast set-top-box is expected to released in the second half of 2006.

Under TiVo's new pricing plans to be launched next week, subscribers will not have to pay for a DVR box, which currently costs about $50 after rebates. Instead, they will pay $19.95 a month, or $224 prepaid, for a one-year commitment; $18.95 a month, or $369 prepaid, for a two-year commitment; and $16.95 a month, or $469 prepaid, for a three-year commitment.

The new pricing plan will be available initially only to customers who sign up via TiVo.com. Customers attained through retail stores will still face the current prices and service fees, though TiVo is working to apply the same new pricing plan for retail customers.

TiVo's previous product-lifetime service subscription fee of $299 will be eliminated, the company said.

For the fiscal year, TiVo said it had a net loss of $34.4 million, or 41 cents a share, compared to a net loss of $79.8 million, or 99 cents a share in fiscal 2005.

For the current first fiscal quarter, TiVo said it expects revenues in the range of $48 million to $50 million and a net loss of $19 million to $22 million.

Analysts were expecting a loss of $2.1 million, or 3 cents a share, on revenue of $50.3 million.

The wider-than-projected net loss for the current quarter stems from expectations of "significant" legal costs for the upcoming jury trial of TiVo's patent infringement case against EchoStar Communications Corp., TiVo officials said during a conference call to analysts.

"While we fully recognize the challenges we face, we believe we could continue growing," Rogers said during the call.

The company has pegged losses throughout most of its eight-year history, though it did break even on a per-share basis in its last fiscal second quarter.

Shares of TiVo fell 10 cents, 1.7 percent, to close at $5.75 Wednesday on the Nasdaq Stock Market. The stock was unchanged in late trading, after the report was released
 

RobertsD

SatelliteGuys Pro
Nov 22, 2005
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19.99 a month?

I'd rather get the family package through Dishnetwork, and the 625... That way not only would I be getting a DVR, but also 40 channels for only $5 more a month.
 

jrfuda

SatelliteGuys Pro
Oct 27, 2004
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San Antonio, TX, USA
I think Tivo's going to loose, but - given the recent Blackberry fiasco, and RIM coming out a loser (loser of the lawsuit, but winner in the end since they can do whatever the heck they want now) there's a chance Dish and everyone else could have to pay if the jury's suckered in to side with Tivo. Here's some info about the patent that Tivo's griping about:

http://news.com.com/Industry+ponders+impact+of+TiVo+patent/2100-1040_3-258345.html?tag=nl

I think it's kind of lame that they were given a patent for an idea that was already being implemented by other folks. And if you read that article, it looks like TVGuide is (was) wanting to sue Tivo for stealing its ideas.

If Tivo wins its lawsuit, maybe JVC and GemStar/TVGuide should sue them for combining their ideas of a guide and a video recording device.

You know, shoes and socks have been around for centuries. Maybe I'll patent the concept of a device for covering feet, and then I can sue all the shoe and sock makers for patent infringement on my really vague idea that someone else already thought of ;)
 
Last edited:

Chris Freeland

SatelliteGuys Pro
Sep 8, 2003
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Collegedale, TN
RobertsD said:
19.99 a month?

I'd rather get the family package through Dishnetwork, and the 625... That way not only would I be getting a DVR, but also 40 channels for only $5 more a month.

Remember that the $19.99/mo includes Free equipment that you own and you have the option of pre-paying $224 and having no monthly fee for 1 year, which is no more then the price of a decent DVD-R. Also most people are going to want more channels available to them to record then just the one's available in Dish Family.

Having said the above though, I agree that it is a much better deal to rent your DVR from E*, D* or your local cable company.
 

maximum

SatelliteGuys Pro
Jun 1, 2004
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Phoenix
Chris Freeland said:
Remember that the $19.99/mo includes Free equipment that you own...
Are you sure you "own" the equipment? Or will you have to return the box if you cancel your subscription.

Or maybe you'll "own" it after your 1, 2, or 3 year commitment is over. Are TiVo boxes functional without a subscription?
 

Chris Freeland

SatelliteGuys Pro
Sep 8, 2003
615
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Collegedale, TN
maximum said:
Are you sure you "own" the equipment? Or will you have to return the box if you cancel your subscription.

Or maybe you'll "own" it after your 1, 2, or 3 year commitment is over. Are TiVo boxes functional without a subscription?

I suspect it is smiler to the way D* structured their commitments before they went to the current lease plan. You will own it but if you cancel it before your commitment is up you will have to send the equipment back or pay the balance of your commitment off.
 

Stargazer

Supporting Founder
Supporting Founder
Sep 7, 2003
16,563
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Western WV
What the heck? Tivo hears bad news then they pull this crap? I say Tivo will not make it much longer at this rate. Perhaps someone else (a cable, satellite, or other television programming provider) will buy them out.

No more lifetime subscription option? BAD DECISION! Why not give this option anymore? I guess there are other options than Tivo if we want this.
 

nsafreak

SatelliteGuys Pro
Nov 7, 2004
528
13
Denver,Co
You know the price of a 3 year subscription to Tivo is awefully close to a LIFETIME subscription for ReplayTV. Yeah I know ReplayTV is going down the tubes but still that is a bit too much to be asking for 3 years of service if you ask me.
 

JohnL

Pub Member / Supporter
Sep 23, 2003
1,411
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Spencerport, NY
$20.00 Bucks a month to just record, and you don't get any Bundled channels or service for that price.

Tivo is done. $20.00 bucks a month is a deal breaker for most subscribers.

Unfortunately for TIVO there are far too many other DVR options out there, some free and MANY bundled with their respective Multichannel service that are far cheaper.

Yes, I know that many like the TIVO interface the question is if that "Better" interface is worth the extra $7.00 per month over the current $12.95, thats more than a 50 percent increase in fees. Cable, and satellite subs scream and go crazy over less than 5 percent increases.

DirecTV's decision to drop the COMBO DirecTIVO units from Production and in the near future replace them all with MPEG4 units, Dish Network's Patent infringement case bleeding them dry of cash, and skyrocketing User Fees that scare new would be TIVO users away, TIVO is IN HUGE TROUBLE.


If they don't pull a rabbit out of their collective hats within the next year or two TIVO will NOT Surive in its current form, regardless of TIVO being the Generic term for Digital recording or not.
 

Stargazer

Supporting Founder
Supporting Founder
Sep 7, 2003
16,563
338
Western WV
Yeah, for $26 you got Dish DVR and some actual programming (Family Pack and $6 DVR fee). Geeze! Heck you can even get one of the Dish DVR's without the DVR fee so for $20 you can have Dish programming with DVR service for the same price.
 

Barry Erick

SatelliteGuys Pro
Aug 27, 2004
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Dallas
jrfuda said:
I think Tivo's going to loose, but - given the recent Blackberry fiasco, and RIM coming out a loser (loser of the lawsuit, but winner in the end since they can do whatever the heck they want now) there's a chance Dish and everyone else could have to pay if the jury's suckered in to side with Tivo. Here's some info about the patent that Tivo's griping about:

http://news.com.com/Industry+ponders+impact+of+TiVo+patent/2100-1040_3-258345.html?tag=nl

I think it's kind of lame that they were given a patent for an idea that was already being implemented by other folks. And if you read that article, it looks like TVGuide is (was) wanting to sue Tivo for stealing its ideas.

If Tivo wins its lawsuit, maybe JVC and GemStar/TVGuide should sue them for combining their ideas of a guide and a video recording device.

You know, shoes and socks have been around for centuries. Maybe I'll patent the concept of a device for covering feet, and then I can sue all the shoe and sock makers for patent infringement on my really vague idea that someone else already thought of ;)


Thing is, for years Broadcasters were using things called Video Servers that one could record one or up to 4 programs (or spots) at one time while playing back up to 4 at the same time. It is a simple Microsoft operating system that allowed the multitasking and then a jpeg or MP3 routine for storing. Video Media and Tektronix were the main companies that marketed these since the early 90's.

TIVO did not have anything unique.
 

Kryspy

SatelliteGuys Pro
Sep 11, 2003
248
0
Ontario, Canada
Tivo's only future is to align themselves with the likes of Microsoft or even a LINUX platform and develop products for the HTPC market.


I never saw the whole TIVO attraction. As a Northern cousin who had Directv way back when I bought a DireTivo off of ebay and it was as slow as mollases in January.

Kryspy
 

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