Netflix will bring its streaming movie service to owners of TiVo Series3, HD, and HD XL DVRs. Testing began last week, with the rollout to all TiVo subscribers following in December.
TiVo's struggle for survival continues to generate headlines. Two weeks ago I reported that the company may reduced rebated hardware prices to nothing, concentrating on software for survival. This week's big announcement, as Darryl reports, is that TiVo is axing its $299 lifetime service plan in favor of shorter-term plans for one to three years. Darryl's also got the details on the new TiVo Mobile plan which will allow remote scheduling of DVR recordings from the Verizon Wireless network. And there's more: In June TiVo Kidzone will make the DVR more family-friendly by permitting parents to ix-nay programs either individually or under built-in advice from groups like the Parents Television Council. The company is targeting doctors with what it describes as "physician-oriented programs." Finally, the future may be brightening for TiVo—last year's fourth-quarter loss was 24 cents per share, down from 42 cents the previous year.
TiVo may soon lower its hardware pricing to every consumer's favorite number: zero. The news came when CEO Tom Rogers addressed a Reuters technology summit on Monday. The free hardware would begin as a test. In exchange, service plans may extend longer and cost more. Why this, why now? TiVo is a publicly traded company under constant pressure from Wall Street. Once its main competition was RePlayTV but now it's up against proprietary offerings from cable and satellite companies as well as mainstream manufacturers. An especially hard blow was DirecTV's announcement last year that it would de-emphasize TiVo in favor of its own product. Smooth-talking Rogers is determined to defend and increase his subscriber base of four million: "We feel that the notion that TiVo has hit some kind of distribution wall and is no longer a growth animal is not the case." Coincidentally, he is the former CEO of Primedia, publisher of Home Theater.
TiVo is pleading with Congress to make its DVRs, and retail set-top devices in general, as powerful as those leased by cable operators to their subscribers.
Or "tattles," as The New York Times put it. In an effort to mend fences with frazzled advertisers, TiVo's new research division will sell data on its 4.4 million users and their ad-viewing habits or lack thereof. Ad skipping is a hot issue—ABC's ad-sales chief is actually trying to convince cable operators to "disable the fast-forward" on their DVRs! Half of TiVo use is time shifting and 70 percent of that group has a finger on the fast-forward button. But TiVo hopes data on specific commercials will help advertisers design better ones. The researchers will sample 20,000 TiVo users per night, reporting back what was watched and when. More specific details on viewer demographics won't be revealed due to TiVo's privacy policy though the company told the Times that may change by year-end. With the feds demanding logs from the major search engines, TiVo's data mining may be the least of our problems.
Broadband-connected TiVo owners will get a chance to subscribe to one of the leading music services via the DVR, under a deal between TiVo and Rhapsody.
TiVo is unquestionably the industry's deluxe DVR, but that status has always come at a price: Users pay for both hardware and the monthly program guide subscription. Now the latter is rising in price.
TiVo's monthly fee of $12.95 is going up to $19.99. And the cost of lifetime service, previously $399, is now $499. The new prices became effective last week, on May 19, 2011.
The a/v and online worlds converged just a touch more this week when TiVo activated a new feature that allows subscribers to watch web video content on their TiVo-fed TVs.
It's not nice to steal intellectual property. That's what the U.S. District Court of Appeals said last month, ending a legal fistfight between TiVo and EchoStar. The court upheld a lower court ruling that the owner of the Dish Network infringed patents for a "multimedia time warping system."