1. TiVo By: Nick Scofield, Mike Pitterle, & Brian Kudelas
2. 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
3. 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
4. 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
5. 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
6. 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
7. 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
8. 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
9. 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
10. 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
