TiVo Runs Infomercial, Extends Experimental Pricing

You know that experimental TiVo pricing, intended to run only a week? Well, TiVo must have found some success offering Premiere hardware and service for $20/month, with zero cash up front. As they’ve launched a national infomercial (above) to highlight the promotional plan – which is obviously still in play (and includes a bonus 6 months of free Netflix service).

Those in the know, who may be less interested in a 2 year commitment but are looking to add additional TiVo hardware to their household, should keep their eyes open for continued Electronics Expo dealios. We’ve got a thread going in the TiVo Community tracking inventory and coupon codes – often resulting in nearly half-off Premiere hardware.

Lastly, for some solid meta commentary, check out Harry McCracken’s latest Time column that examines how TiVo does (or doesn’t) fit into the evolving home entertainment new world order.

19 thoughts on “TiVo Runs Infomercial, Extends Experimental Pricing”

  1. “…TiVo is Not a DVR. Only.” proclaims the Premiere’s marketing material. It sounds a little defensive, but makes an important point. In addition to doing all the stuff we’re used to TiVo doing, the box lets you stream content from Netflix Watch Instantly, Amazon On Demand, Blockbuster, YouTube, the Pandora music service and more, replicating the core features …”

    Looks like GoogleTV has more influence than [the haters] thought!

    :P

  2. Now that it looks like CCs and TAs are here to stay for a while I will probably migrate from my two series 3 boxes to the Premiere as soon as my cable provider allows self-installs.

    I enjoyed the meta analysis but it fell short by missing a number of points — 1) no mention of the domestic and international deals TiVo has brokered with the MSOs; 2) no mention of the recent rulings from the FCC that might make cable card’s and tuning adapters a little less painful; 3) no mention of the recent USPTO final ruling upholding TiVo’s foundational time warp patents.

  3. I suspect the current, ongoing patent dispute/validation will be a sidenote to anyone but TiVo investors when all is said and done, since it seems there are ways to build DVRs without infringing on TiVo’s IP. The short term cash infusions are certainly important to TiVo’s business, but have little bearing on over-the-top services beyond funding R&D.

    Not sure if Harry wrote the article before or after the new CableCARD “order” came down, but some are obviously feeling hopeful now that the FCC is doubling down on the original intent of separable security and a more level playing field.

    I agree that TiVo’s industry deals are hugely important for both them and as a way for MSOs to possibly provide and merge this over-the-top content from within a single UI, without reinventing the wheel. But they’re not the only game in town… It’s going to get interesting.

  4. I was in a best buy yesterday playing with a premiere. I selected amazon on demand and everything went from 16:9 to 4:3. Is this really how they released it?
    Beyond this, there was no video coming into the TiVo, they need to make sure their retail
    Kiosks look good if they want to sell any of these things.

  5. The TiVo “HME” apps are still old school, haven’t been refreshed with the Flash UI yet (ever?). Not sure what TV/TiVo aspect ratio settings they use there, but once Amazon VOD starts playing there’s some pretty high quality 16:9 stuff. I agree on a live cable or OTA connection though – I was also in a Best Buy and witnessed a hobbled Premiere kiosk. Wonder if it does more harm than good.

  6. Gotta believe that TiVo is working on new HD screens similar to the new Pandora Premiere app for Netflix and Amazon. What I’m not sure of is why its taking so long and why Pandora before a refreshed Netflix and Amazon UI!?! If TiVo could guarantee me a spot in the Beta program for the Premiere I might be really tempted to upgrade today.

  7. I’m not surprised to see TiVo having success and I think that there is a great future in store for rentable TiVo’s. One aspect that has been overlooked is that if TiVo were to migrate more customers to the program, they will have effectively raised prices by more than double in the process. I also found it interesting that the Ad promised customers that they could lock into the $19.99 per month fee for life. My guess that this guarantee is a way for TiVo to sidestep the issue of still charging $19.99 per month even after the customer has paid off the box, but I bet that this causes problems down the road. On one hand, it’s hard to imagine their prices going above $20 per month in the future, but on the other hand these types of guarantees have a way of creating all kinds of headaches for businesses in the future. Just look at all the money that Netzero had to payout when they tried to take away the “free internet for life” that they had promised customers during the internet boom years. I’ve always felt that the hardest part for TiVo was getting potential customers to try the software when they had to shell out at least $300 for the hardware. The rental program creates an easy no risk way for those on the fence to try it. Given TiVo’s low churn rates, I have high expectations for people adopting it once they’ve used it for a month.

  8. I saw the Investor Village post calling it a “rental” program… interesting. I’d say “rent-to-own” or “installment payments” is better, it’s mostly the phone subsidy model. Not that what we call it matters.

    Also, good points on making it less painful to get onboard while actually raising rates/revenue.

  9. Davis, Always enjoy your comments. No more of a headache than the cell phone carriers have to deal with after a contract expires. Just found you on twitter… @DavisFreeberg

  10. Dave,

    I’d like to ask you to expound on your comment, “since it seems there are ways to build DVRs without infringing on TiVo’s IP”. With the recent PTO decision in TiVo’s favor (yet again), along with the all of the trial (and appeal) wins, how do you justify this statement? Without trying to defend an absolute statement such as “it is impossible to build a DVR without infringing on TiVo’s IP”, I have yet to see any evidence of a DVR that has been designed that has NOT infringed on TiVo’s IP. Also, remember that TiVo’s IP is a lot more extensive than just the most frequently referenced “trick play” patent.

  11. Well, I’m no patent attorney and I don’t track this element of TiVo as closely as investors or business analysts. However, based on what I’ve read in regards to the EchoStar/DISH case and the one court session I sat in on it seems to me the it’s not the idea of time shifting, it’s the specific techniques being used that are contested. Perhaps I’m wrong and TiVo does indeed own the entire concept. We’ll see, I guess. (Also worth contemplating… DirecTV snapped up ReplayTV IP and Microsoft counter-sued TiVo in regards to their battle with AT&T U-verse.)

  12. @sam Glad you found me, this case is a bit different than the cell phones though because they are allowed to raise fees once your contract is up. I’m not sure that many do, but they can. Where this could be more of a headache is if TiVo wants to add services in the future. For example, what if they came up with an online storage system that gave users an exponentially larger “hard drive” If they tried to charge for the service, TiVo “lifetime renters” could potentially cry foul. This may not really be an issue, but the point is that when you use the word forever in your marketing, there are all kinds of unexpected ways that it can haunt you later. It probably won’t be a problem, but it’s interesting to see that TiVo is self conscience enough about the higher fees if a renter turns into a long term subscriber to use this type of guarantee.

  13. Hey Dave,

    Don’t know if you caught this one:

    “CableLabs Preps iPad App Framework”:

    http://www.lightreading.com/blog.asp?blog_sectionid=419&doc_id=198723&site=lr_cable

    Its funny actually. Lots of talk about how fast cable is going to be moving, while ignoring the fact that we’re now what, 5 months, since Comcast and Time Warner demoed their iPad apps and there’s really no indication when or if either of them will ever be available for customers to use.

    I mean seriously, it took Comcast what, a year and a half to roll out a usage meter? I’m not holding my breath for this stuff.

  14. Sounds interesting… but, as always, we shall see! I’m on the road for work and don’t have time to emcee a discussion on it, so I passed the tip on to the Engadget team.

  15. It still looks laggy, it doesn’t integrate well with DBS providers, and the whole HD UI experience is still unfinished and unflattering.

    No go Tivo. I’ll stick with my DirecTV HR24-200 and real MRV.

  16. It seems this is the whole advantage of the new Premiere platform and control over your platform is the ability to easily expand, improve and ensure the user experience is consistent. It’s just sloppy to release a product, especially a consumer product, like that… and that it would still be like that so long after release…

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