TiVo allows users to pause, rewind and record live TV and faces challenges in gaining widespread adoption. The document analyzes TiVo's business model and competitive threats. It recommends that TiVo lower prices to attract mainstream consumers, emphasize the pause and recording features in stores, and partner with TV providers to boost exposure and sales.

1. TiVoBy: Nick Scofield, Mike Pitterle, & Brian Kudelas

2. What we will be covering…Quick overview of the casePotential problems and competitive forces facing TiVoAlternative courses of actionBest plan of action for success

3. Synopsis Average household has 2.4 TV’sAverage of 7.4 hours a day watching TVPopular shows between 8 and 11 pm have audiences larger than 25 millionFounders started by focusing on the TV vs. “home networking” ideaNeed to change customers rituals on a mass scale

4. What TiVo DoesTakes feed and turns it into digital videoEnables pause/fast forward/record Partnered with Sony and Philips They manufacture, distribute, and promote TiVoTiVo focuses on web and PR aspectsBox pricing: $499 and $999Subscription: $9.95/mo, $99/yr, or $199/life

5. Problems facing TiVoHard for nonusers to understand premiseDifficult to market to in-store customersNetworks and advertisers fear that customers will skip commercialsCompetition 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 awarenessDifficult to show features in stores; many customers need a demonstration Show pause/record/skip/FF/REW featuresPrediction system, favorites, suggestions, no tapesIllustrate 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 costCurrently problematic, because at $999, its more expensive than many TV’sWould 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 providersEmphasis on personal television Allows networks and advertisers to gain back some control (short ads, etc.)Most likely would be lower cost to consumersCould hurt TiVo’s marginsCompetition 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 $400Keep subscription costsCurrently 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 showMore in-depth Point-of-Sale demos in retail storesPartner with service providers (Comcast, Direct TV, AT&T etc.) to boost sales, market share and exposure to mass market

11. Questions or Comments