Marketing Essay

TiVo Inc. Case

By Mitch Casselman & John Nadeau October 29, 2002 Carleton University Ph.D. Program - Dr. Tom Koplyay
Note: Analysis is based entirely on information from public sources

1

1

Presentation Outline
n n n n n

Company Background Market Discussion Competitive Picture Situational Analysis Strategic Direction

2

2

Company Background
Product, Technology, Partners, Investors, Government, Lawyers and Customers

3

3

Company Background Product
n

TiVo Service Subscriptions -

monthly $4.99 (recently reduced from $9.95) or lifetime $249

n

n n n

Licensing arrangements for Personal Video Recorders (PVR’s) Sponsored content Audience measurement research Platform for electronic commerce
4

The TiVo Service represents what’s been billed as the Personal Television Industry. Watch what you want, when you want! PVR’s are designed and developed by Tivo, licensed for manufacture and sold in retail channels as a consumer electronic device. Seasonality – anticipate large growth of annual new subscribers during the holiday shopping season. Sponsored content delivers charter advertising and sponsorship revenue. However, revenue by this source has been relatively insignificant. Examples: Short films, Counting Crows Debut of Album

4

Company Background: Technology/R&D
n n n n

Pause and instant replay Planned R&D focus On-staff engineers Technology Risk
5

Pause and instant replay of live TV by storing information on a hard drive

Continued investment in the improvement and addition of features and functionality of current products as well as design of new platforms

On-staff engineers in R&D now (previously contract based)

Technology Risk – can be devised in home on a PC with a large hard drive and video card or a competitive technology solution. Overall, many competing solutions

5

Company Background Partners
n

Manufacturing Partners
n n n n n

Hughes Network Systems Sony Quantum Phillips...