Tivo Customers Face $150 Cancellation Fee

First Macrovision DRM, now this… Tivo has gone the route of most cell phone providers with their updated service agreement. They’ll sell you hardware at a loss, but guarantee themselves service revenue to recoup those expenses. If you cancel service within a year of activating your unit, you’ll be penalized $150. No caveat for multi-Tivo homes has been posted or explained, though Tivo did use the word may in the new policy.

Tivo’s definitely learning how to become profitable, but at what cost? New ads and fees like this will likely alienate a percentage of customers.

Tivo says: WITH RESPECT TO ANY NEW TIVO SERVICE SUBSCRIPTION ACTIVATED ON OR AFTER SEPTEMBER 6, 2005, YOU AGREE TO SUBSCRIBE TO THE TIVO SERVICE FOR NO LESS THAN 12 MONTHS (THE “SERVICE COMMITMENT”). IF YOU FAIL TO MEET THE SERVICE COMMITMENT BY CANCELLING YOUR SUBSCRIPTION TO THE TIVO SERVICE (OR IF TIVO TERMINATES YOUR SUBSCRIPTION TO THE TIVO SERVICE DUE TO A BREACH OF THIS AGREEMENT), YOU AGREE THAT TIVO MAY CHARGE YOU A $150 EARLY TERMINATION FEE, AND YOU AGREE TO PAY ANY SUCH EARLY TERMINATION FEE.