TiVo Presentation


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Presentation for a TiVo case study from my Marketing Strategy class

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TiVo Presentation

  1. 1. TiVo<br />By: Nick Scofield, Mike Pitterle, <br />& Brian Kudelas<br />
  2. 2. What we will be covering…<br />Quick overview of the case<br />Potential problems and competitive forces facing TiVo<br />Alternative courses of action<br />Best plan of action for success <br />
  3. 3. Synopsis <br />Average household has 2.4 TV’s<br />Average of 7.4 hours a day watching TV<br />Popular shows between 8 and 11 pm have audiences larger than 25 million<br />Founders started by focusing on the TV vs. “home networking” idea<br />Need to change customers rituals on a mass scale<br />
  4. 4. What TiVo Does<br />Takes feed and turns it into digital video<br />Enables pause/fast forward/record <br />Partnered with Sony and Philips <br />They manufacture, distribute, and promote TiVo<br />TiVo focuses on web and PR aspects<br />Box pricing: $499 and $999<br />Subscription: $9.95/mo, $99/yr, or $199/life<br />
  5. 5. Problems facing TiVo<br />Hard for nonusers to understand premise<br />Difficult to market to in-store customers<br />Networks and advertisers fear that customers will skip commercials<br />Competition <br />Replay TV: Quick skip, no service fee, $<br />Microsoft Ultimate TV: More technologically advanced <br />
  6. 6. Possible Alternatives <br />Create better brand awareness <br />Partnership with Sony and Philips isn’t really helping with awareness<br />Difficult to show features in stores; many customers need a demonstration <br />Show pause/record/skip/FF/REW features<br />Prediction system, favorites, suggestions, no tapes<br />Illustrate the fact that it is TV on the customer’s terms, not the network’s<br />
  7. 7. Alternatives Continued <br />TiVo could focus on everyday consumers and lower the cost<br />Currently problematic, because at $999, its more expensive than many TV’s<br />Would attract the mass market, not just “early adopters” and “trend-setters”<br />Could give a “free” TiVo with a subscription contract<br />
  8. 8. Alternatives Continued <br />Partner with internet or dish providers<br />Emphasis on personal television <br />Allows networks and advertisers to gain back some control (short ads, etc.)<br />Most likely would be lower cost to consumers<br />Could hurt TiVo’s margins<br />Competition from Microsoft<br />
  9. 9. Recommendations <br />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 <br />Price unit around $200 to $400<br />Keep subscription costs<br />Currently 102 million TV-Watchers and only have 42,000 subscribers since intro<br />
  10. 10. Recommendations <br />Emphasize the fact the TiVo box has the ability to pause a show at any time necessary and record: never miss a show<br />More in-depth Point-of-Sale demos in retail stores<br />Partner with service providers (Comcast, Direct TV, AT&T etc.) to boost sales, market share and exposure to mass market <br />
  11. 11. Questions or Comments<br />