TiVo in 2005: The Way Forward<br />By LT4<br />Anurag, Azlan, Carl, Goldy, Jen, Medel<br />
Outline of presentation<br />DVR Business –Brief Intro<br />Consumer perception and profile<br />Trends<br />Competition<b...
TiVo’s Business<br />Personal TV provider for DVR technology (Software/service and Hardware)<br />Providers of unique serv...
Consumer’s perception & Profile<br />Not clear on the usage<br />What TiVo could do and What TiVo could not do<br />Half o...
TiVo subscriber trend and forecast<br />
Competition<br />
Competition Comparison<br />
Before TiVo TV viewing<br />Majority of television viewing happens during primetime hours<br />Virtually all televisions w...
After TiVo: Primetime is Anytime<br />Majority of television viewing occurs outside primetime hours<br />Up to 70% of some...
TiVo powered DVRs<br />
Advertising & Research partners<br />
Core Issue/Challanges<br />Significant net losses since inception<br />Threat of survival <br />
Causal Factors<br />High payback period –new product new market (single product –only service till 2001)<br />Introduction...
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Tivo in 2005 strategic inflection lt4 rev 01

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Tivo in 2005 strategic inflection lt4 rev 01

  1. 1. TiVo in 2005: The Way Forward<br />By LT4<br />Anurag, Azlan, Carl, Goldy, Jen, Medel<br />
  2. 2. Outline of presentation<br />DVR Business –Brief Intro<br />Consumer perception and profile<br />Trends<br />Competition<br />Strategic Issues/ Challenges<br />Causal Factors<br />Way ahead – objective<br />Strategic Options <br />Org. Capability assessment , prioritization <br />
  3. 3. TiVo’s Business<br />Personal TV provider for DVR technology (Software/service and Hardware)<br />Providers of unique services to the advertising industry for promotions and audience research – only available from TiVo<br />Business model <br />Standalone sales online and thru national CE retailer -Ex. Best Buy etc.<br />Licensee of DVR technology to the industry -Ex.Toshiba etc.<br />Partnership with MSO’s (Cable TV and/or Satellite TV) –Ex.DirecTV<br />Revenue -> combination of direct sale revenue, subscription fee, license fee and research/advertising revenues<br />Over 3M subscribers as of 31st Jan 2005<br />Competitors: EchoStar, Replay TV, NDS, Open TV, Scientific Atlanta, 2Wire, Akimbo even MS, HP, Sony and IPTV from telcos.<br />Board members are NBC, Coca Cola, Sony, Omincon and Discovery<br />
  4. 4. Consumer’s perception & Profile<br />Not clear on the usage<br />What TiVo could do and What TiVo could not do<br />Half of market analyst used PVR and rest DVR<br />Customers were surprised on monthly fee<br />Average customers not grasped the concept<br />97% of TiVo users were very satisfied<br />Enthusiast<br />Comfortable with technology<br />Married, 25-45<br />Monthly Income: 70k – 100k<br />Families with young children (parent control feature)<br />
  5. 5. TiVo subscriber trend and forecast<br />
  6. 6. Competition<br />
  7. 7. Competition Comparison<br />
  8. 8. Before TiVo TV viewing<br />Majority of television viewing happens during primetime hours<br />Virtually all televisions watched “Live” <br />Life fits into the network schedule<br />
  9. 9. After TiVo: Primetime is Anytime<br />Majority of television viewing occurs outside primetime hours<br />Up to 70% of some programs viewership is recorded<br />Reality, news and sports are the only genres that retain much live audience<br />In recorded mode, the vast majority of commercials are skipped<br />
  10. 10. TiVo powered DVRs<br />
  11. 11. Advertising & Research partners<br />
  12. 12. Core Issue/Challanges<br />Significant net losses since inception<br />Threat of survival <br />
  13. 13. Causal Factors<br />High payback period –new product new market (single product –only service till 2001)<br />Introduction of Hardware (initial investment, longer payback) in 2002<br />Emergence of formidable competition-low margin /pricing pressure<br />Limited Market -8mn as of 2005 (36% share)<br />
  14. 14. Way ahead…Objective<br />Financial Turnaround by generating significant additional revenues to achieve sustained profitability<br />How ?<br />Strategic Options ? <br />
  15. 15. Strategic Options<br />Is it the question of either of above or all (majority) of above with prioritization?<br />
  16. 16. Further challenges …<br />Market- How to increase usage/adoption?<br />Future regulation relating to copyright law or evolving industry standards and practices that could adversely impact the business<br />Positioning <br />Mass market or niche?<br />Identity -“DVR business” or “entertainment service business”<br />Organizational Capability<br />Financial leverage<br />Support function capability building for expansion<br />(do we have capability to scale the business?)<br />
  17. 17. TiVo’s USP<br />R&D – IP rights<br />Brand<br />
  18. 18. Market<br />5X increase in 4 years (2005-09)<br />Shift from cable operators to DVRs<br />Need to differentiate and have strong distribution to reach to mass to capitalize early innovation<br />
  19. 19. Advertisement<br />Initial Ads<br />http://www.youtube.com/watch?v=2a3ZzKVHQws&feature=related<br />http://www.youtube.com/watch?v=Ws34lRRj0ec<br />http://www.youtube.com/watch?v=Jo4ESU9dJr4&feature=related<br />My tivo gets me<br />http://www.youtube.com/watch?v=s1iM4ZUt3Ms&feature=related<br />
  20. 20. TiVo on IPhone<br />

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