TiVo is still trying to find that sweet spot between upfront hardware costs and recurring monthly service fees in attracting customers and eeking out a profit. In the last 18 months, they’ve instituted a cancellation fee, experimented with a variety of rebates and online deals, killed the Lifetime service option and generally confused folks with multiple purchase options.
So where are we now? I have no idea and my head hurts… The Winter rebate for standard def units expired yesterday ($180), and the replacement rebate is $30 less ($150). However, service fees have gone down as well: $16.95/mo with a 1 year commitment, $14.95/mo with 2, and $12.95/mo with 3 years. Can this be applied to existing hardware? Someone make the call and let us know.
It also looks like the single tuner Series2 units are off the market (for now), coinciding nicely with the 3/1 FCC requirement to include an ATSC tuner with a NTSC tuner.
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Overall, a loss for multi-year subscribers, and a small savings for one-year subscribers.
Brian, thanks for the summary. I've officially given up trying to make sense of Tivo's pricing policies.
I have too..
Honestly, I think they should go back to the $12.95/mo across the board ($6.95/mo for each additional unit) and keep customers through awesome service not the fear of a cancellation fee.
If profitability is a problem, charge whatever you need on the hardware portion. I'd rather feel upset about overspending once, rather than be reminded each month.