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Technology Stocks : Tivo (TIVO) Interactive TV -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (974)	5/9/2003 3:02:24 PM
From: Road Walker	Read Replies (1) \| Respond to of 2093

I agree, but I wish there was at least a minimal charge. Once you give something away for free, it can difficult to sell it. Good news is that Tivo says they will be "compensated", per the Reuters article. And it will certainly remove one of the key objections for the consumer. I wonder if the same Tivo basic service will be used to sell the cable companies? TiVo to license basic service for DVD players Thursday May 8, 4:00 pm ET NEW YORK, May 8 (Reuters) - Tivo Inc.(NasdaqNM:TIVO - News), whose technology allows television viewers to pause and replay live shows, on Thursday said it will license a bare-bones version of its service primarily to makers of DVD players. ADVERTISEMENT In an effort to increase its subscriber base, Tivo will license consumer electronics makers to build devices with Tivo Basic, a free service that will allow users to pause live TV shows and record programs by time and date. The basic service will not include the enhanced features like the ability to save any film starring Christopher Walken. But each box will allow users to upgrade to Tivo's full service, which offers fee-paying subscribers the option to record up to 80 hours of programs, including an entire season of one show. The enhanced system also automatically records shows based on users' viewing habits. All Tivo Basic products will be shipped with the ability to upgrade to the full Tivo service, which costs about $13 a month or a one-time fee of $299. Tivo said Toshiba Corp.(Tokyo:6502.T - News) would be the first company to produce a DVD player with the Tivo Basic service, with its device available at retail stores later this year. A Tivo spokeswoman declined to detail the terms of the licensing agreement with Toshiba. She said that while purchasers of the Tivo-enabled Toshiba device would receive the basic service for free, Tivo would be "compensated." With about 600,000 subscribers, Tivo claims the most well-known brand of digital video recording service. EchoStar Communications Corp.'s(NasdaqNM:DISH - News) Dish Network says it has more DVR users, but has declined to give total user figures. Tivo, which draws most of its earnings from subscriber fees, has been working on new sources of revenue including licensing as big consumer electronics brands such as Matsushita Electric Industrial Co Ltd.'s Panasonic(Tokyo:6752.T - News) develop their own DVR systems. Tivo which makes its own Tivo-branded DVR, said it does not plan to sell a DVR with the Tivo Basic service.

To: Bill Harmond who wrote (974)	5/9/2003 4:56:40 PM
From: Road Walker	Respond to of 2093

Personal Technology -------------------------------------------------------------------------------- Posted on Fri, May. 09, 2003 TiVo looks for magic combo SAN JOSE COMPANY TO UNITE DVR, DVD By Sam Diaz Mercury News TiVo wants to combine its digital video recorder with a DVD player as it faces a challenge from cable companies about to introduce their own DVRs to consumers. At stake is control of the home television. Thursday, the San Jose company announced a free, scaled-down version of its DVR service that's being made available to makers of DVD players and other electronic products. Toshiba is the first to announce a DVD player with a built-in TiVo, expected to hit retail shelves in the fall. Price has not been set, but it could be as high as $500, far more expensive than DVD players on the shelves today. Still, the idea of giving consumers a free version of TiVo -- with plenty of offers for a limited-time free trial of the full version -- may be just what the San Jose company needs to boost its number of subscribers. ``This is really smart on TiVo's part,'' said Phillip Swann, president of TVPredictions.com, a Santa Monica consulting firm. ``If you use TiVo for all of five minutes, you become hooked. The real problem that TiVo has had has been getting people to use it for five seconds.'' As a basic DVR, TiVo allows users to pause live TV and record programs to a hard drive instead of video tape. But the full subscription service offers extras such as recording by program names, instead of time and channel, and scanning of the programming schedule to automatically record programs featuring favorite actors and actresses. TiVo units have been pricey -- about $300 -- and the idea of an additional monthly fee is a tough sell. A monthly subscription for TiVo is $12.95, though DirecTV customers pay as little as $4.95 per month when they order the DVR service through the satellite TV provider. ``This could entice people to start using it,'' Swann said. ``Some people will upgrade and pay and some people will be happy with the free basic service. But this opens doors for them. And they need more people, period.'' Cable companies are just starting to offer DVR services to their customers as a premium in some markets. If TiVo plans to be a serious contender, it needs to be the preferred service or at least the recognized name among consumers before the cable companies get to them. ``That's TiVo's biggest obstacle,'' Swann said. ``Why would anyone buy TiVo if their cable provider is going to give it to them through a set-top box?'' TiVo spokeswoman Rebecca Baer said the partnerships also offer companies such as Toshiba the chance to add some value to the DVD player, a product that has dropped in price over the past year. ``DVD players are still desirable products,'' she said. ``This is a combination of a DVD player and a TiVo, two very desirable products.''