TiVo Experiments With Pricing, Hikes Monthly Fee

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!]