TiVo’s New Pricing Plans

The big news out of today’s conference call is the implementation of the long rumored pricing structure modifications. As expected, TiVo has dropped the upfront hardware fee and is charging for service only. Additionally, resellers such as new partner Radio Shack can handle service orders. The caveats? Monthly fees have gone up and Lifetime service has been mothballed.

So here’s the deal… an 80 hour TiVo will be bundled with these payment plans starting next week:

• The price for a TiVo box and a one-year service commitment is $19.95 a
  month or $224 prepaid
• The price for a TiVo box and a two-year service commitment is $18.95 a
  month or $369 prepaid
• The price for a TiVo box and a three-year service commitment is $16.95 a
  month or $469 prepaid

It’s still early and I’m sure more information will trickle out over the next week or so as TiVo documents this transition. My initial questions…

• What is the monthly cost to reactivate a box or to activate a used box?
• Do multi-unit discounts apply to new boxes?
• Will the 80 hour TiVo unit be the only model available at this time?
• If other models are available, what costs and service plans do they have?
• Will the hardware warranty be extended to cover the service agreement or will there be an insurance option?

I did think the current pricing model and rebate runaround needed to be tweaked, but this is not what I had expected or would have suggested. I’ll let the announcement soak in and get some questions answered before passing judgment. Then again, I’m not the one who will be passing final judgment anyway — the market will decide.