TiVo

By: Nick Scofield, Mike Pitterle, & Brian Kudelas

What we will be covering…

Quick overview of the case Potential problems and competitive

forces facing TiVo Alternative courses of action Best plan of action for success

Synopsis

Average household has 2.4 TV’s Average of 7.4 hours a day watching

TV Popular shows between 8 and 11 pm

have audiences larger than 25 million Founders started by focusing on the TV

vs. “home networking” idea Need to change customers rituals on a

mass scale

What TiVo Does

Takes feed and turns it into digital video Enables pause/fast forward/record Partnered with Sony and Philips

› They manufacture, distribute, and promote TiVo

TiVo focuses on web and PR aspects Box pricing: $499 and $999 Subscription: $9.95/mo, $99/yr, or

$199/life

Problems facing TiVo

Hard for nonusers to understand premise

Difficult to market to in-store customers

Networks and advertisers fear that customers will skip commercials

Competition Replay TV: Quick skip, no service fee, $ Microsoft Ultimate TV: More technologically

advanced

Possible Alternatives

Create better brand awareness › Partnership with Sony and Philips isn’t

really helping with awareness› Difficult to show features in stores; many

customers need a demonstration › Show pause/record/skip/FF/REW features› Prediction system, favorites, suggestions,

no tapes› Illustrate the fact that it is TV on the

customer’s terms, not the network’s

Alternatives Continued

TiVo could focus on everyday consumers and lower the cost› Currently problematic, because at $999, its

more expensive than many TV’s› Would attract the mass market, not just

“early adopters” and “trend-setters”› Could give a “free” TiVo with a subscription

contract

Alternatives Continued

Partner with internet or dish providers› Emphasis on personal television › Allows networks and advertisers to gain

back some control (short ads, etc.)› Most likely would be lower cost to

consumers› Could hurt TiVo’s margins› Competition from Microsoft

Recommendations

TiVo needs to focus its product more towards the everyday TV watchers and use lower pricing to attract more customers than just the high-end › Price unit around $200 to $400› Keep subscription costs› Currently 102 million TV-Watchers and only

have 42,000 subscribers since intro

Recommendations

Emphasize the fact the TiVo box has the ability to pause a show at any time necessary and record: never miss a show

More in-depth Point-of-Sale demos in retail stores

Partner with service providers (Comcast, Direct TV, AT&T etc.) to boost sales, market share and exposure to mass market

Questions or Comments