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Tivo in 2005 strategic inflection lt4 rev 01

Tivo in 2005 strategic inflection lt4 rev 01






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    Tivo in 2005 strategic inflection lt4 rev 01 Tivo in 2005 strategic inflection lt4 rev 01 Presentation Transcript

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