TiVo is once again testing the market with free DVR hardware. And, this time around, it’s the 4-tuner TiVo Roamio that handles cable and over-the-air (but not at the same time). Instead of charging $150-200 at $15/month, TiVo is giving away the Roamio … for those willing to commit to two years of service at $20/month. You can bet their motivation is to reduce the barriers to entry, as they’re similarly experimenting with via the new $50 Roamio OTA model. Yet, given retail distribution via the likes of Best Buy and Walmart, this particular offering may remain an online exclusive. Civilians can check out the promotional pricing here, while our military counterparts have additional options to consider here.
I always like to thank folks who pass me tips, but I can’t track down the email or tweet that turned me onto the civilian deal a couple weeks back – sorry nice person!
I’m not sure I understand this one from Tivo’s point of view — the $20 2 year commitment is actually cheaper (over 2 years) than the $15 1year commitment.
Weird thing is, who would ever go for the $199/19 plan. You only get ahead of the free one after 3 years — which is already after the point that lifetime is cheapest.
Actually, if you don’t get the MSD then you are still paying $20 for month to month, unless you sign another 1 year commitment, then you get $15 a month. Math time, I’m assuming no MSD, but I am assuming you can find the PLUS discount on lifetime units
1. 0/20 = $480 over 2 years
2. 199/15 + 0/15 = $379 + $180 = $559 over 2 years
3. 199/399 = $598 over 2 years(or forever really)
Assuming you keep doing the 1 year commitment to get the $15 instead of $20 there is no break even point between option 1 and 2, break even between 1 and 3 is 2 years, 7.8 months(ie after 2 years, 8 months it’s cheaper to go lifetime), and break even between option 2 and 3 is 2 years 2.6 months(it’s cheaper to go lifetime after 2 years and 3 months)
MSD changes the math, but it’s hard to figure it all out then, since the combinations are just about unlimited. It also doesn’t take into account the price you get when you sell a lifetimed tivo, where the break even would be substantially less.
If going down this path, I don’t believe MSD is an option during that first period of commitment. Beyond the two years, I assume you’d have to cancel and resubscribe to receive the prevailing single unit or MSD monthly price if it’s handled the same as previous scenarios. The $100 Plus model could be interesting for those who want a higher end unit but without the cash on hand to buy outright. It’s effectively 4 bucks more a month over 2 years for streaming, MoCA bridge, 2 more tuners, and larger capacity drive.
Even if you have to borrow at 15% interest because you can only afford $20 a month, still worth it to go with lifetime for $598 if you plan to keep the unit for longer than 38 months.
Good move by Tivo. While not the financially savvy thing to do, cell phones, cars, and houses are all sold based on the monthly payment vs the overall price. People are more than willing to pay more over time for a lower upfront.
I realized after I posted that $598 is the MSD price. A new customer would pay $698, which at $20 a month with 15% interest would be paid in 47 months, not 38.
This is obviously a response to the pressure TiVo feels from the Amazon phone. Thus the need to undercut the Amazon phone on price.
If all you want is OTA then over 2 years it’s cheaper to pay $50 + $15/month for the Roamio OTA.
The pricing for the Roamio Pro on https://www.tivo.com/shop/promo/roamioaugust make even less sense.
Option 1: $200 + $20/month (2 year minimum)
Option 2: $600 + $15/month (1 year minimum)
The second option is never better than the first option. Why confuse customers by posting pricing schemes that no one would ever knowingly accept?
Well, the Plus is $335 retail so if you go for the $99 deal wouldn’t it come out to about $10/mo for service ([580-335]/24)? That’s not bad. Who knows what will be available in two years?
Dave: I remember getting the civilian deal e-mail, in late August. The deal expired on August 31 st.
Quote:
Act now and get a TiVo Roamio DVR for FREE.
For a limited time, get a new Roamio DVR for $0 when you purchase service at $19.99/mo with a 2-year commitment*. Offer ends August 31, 2014.