TiVo continues to experiment with their pricing model. In September they began requiring a one year commitment or face a $150 termination fee when activating a new or used box. Now they’re running a promotion which offers a free low-end TiVo without requiring a rebate. While that sounds appealing, notice that the monthly rate has escalated from $12.95 to $16.95. It doesn’t appear that the rate drops to standard (for now) $12.95 after the first 12 months of service. Even more painful, this “deal” prohibits adding additional TiVo boxes at the $6.95 multi-unit discount monthly rate.
Having multiple rate plans only serves to confuse consumers and if the ultimate goal is to raise rates across the board while dropping multi-unit discounts, TiVo will surely see cable company DVR defections.
TiVo says: GET A 40-HOUR TIVO® SERIES2 DVR AT NO ADDITIONAL COST when you sign-up for TiVo service at a monthly price of $16.95 for at least one year.
TIVO SERIES2 DVRS AND TIVO SERVICE SUBSCRIPTIONS PURCHASED AS PART OF THIS OFFER ARE NOT ELIGIBLE FOR INCLUSION IN THE MULTI-SERVICE DISCOUNT AND DO NOT QUALIFY ANY EXISTING OR ADDITIONAL UNITS FOR MULTI-SERVICE DISCOUNT.
Upgrades to Product Lifetime Service are not permitted.
[Thanks to Cassidy Napoli for catching this on late night TV!]
I don’t think it is as negative, look at cell phone providers and all the different rate plans they offer – prepaid, no commitment, 1 year, 2 year, etc. To me this seems like TiVo testing the waters with different plans – are people willing to pay more monthly to forego the upfront purchase cost. Personally I don’t think this is a good deal – but then, I also tell everyone I talk to to buy lifetime on every unit they get because I really think it is the best deal.
Personally I would’ve rather seen a different approach – $12.95/month and $50 up front with a 1 year commitment and $150 early termination fee, or $12.95/month and a free box with a 2 year commitment and a $200-300 early termination fee. More like cell phones – commit to a longer term, save more.
Oh – I’m also wondering where you spotted this? Where did the the http://www.tvyourway.com site get linked?
I think this is a good idea, especially for people that can’t afford the box or don’t want to drop a lot of cash and then wait for the $150 rebate. It would be nice if there was still a multi-service discount, though… Maybe something like $11.95 instead of $6.95.