UPDATE 2-TiVo stands by estimate on stand-alone subscribers
Fri Feb 4, 2005 11:19 AM ET
(Updates stock activity)
NEW YORK, Feb 4 (Reuters) - Digital video recorder maker TiVo Inc. (TIVO.O: Quote, Profile, Research) on Friday stood by its estimate that it added 200,000 to 275,000 new stand-alone subscribers in its fiscal fourth quarter, which ended in January.
Stand-alone subscribers are those who typically buy a set-top box at a retail store or directly from TiVo and pay about $13 a month for the service. They are more profitable to TiVo than subscribers acquired through satellite TV provider DirecTV Group Inc. (DTV.N: Quote, Profile, Research) .
In November, TiVo said it expected a total of 575,000 to 700,000 new subscribers in the period. Analysts at that time said the forecast included too many of the less-profitable subscribers.
The criticism was fueled by the fact that TiVo last year earmarked some $50 million for a marketing push to spur stand-alone sales. The move has failed to bring the kind of results that would speed the company toward profitability, according to several analysts.
Concerns about TiVo's ability to grow have worried investors amid signs of strain in the company's relationship with DirecTV, and the fact that many U.S. cable TV providers are starting to offer services similar to TiVo's at cheaper prices.
TiVo shares, down about 34 percent this year, climbed 22 cents, or 6 percent, to $3.85 in morning trade on Nasdaq.
TiVo's service allows customers to record TV programs onto a set-top box with a built-in hard drive. Users with home computer networks can also share music, photos and recorded TV programs between devices on the network. |
