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

To: Wyätt Gwyön who wrote (1710)6/27/2005 5:07:39 PM
From: Andre Williamson  Read Replies (1) | Respond to of 2093
 
The costs of supplying service to an ongoing customer are very low. IIRC, and this was from one published source, the cost is under $1 per sub per month.

Does this cover all marginal costs? No, but on average I wouldn't expect them to be particularly high.

I do expect that gross margins on subscription are very, very high as a result.

leave it to the bulls to argue that giving away equipment for free is actually a sign of strength

FTR, I said no such thing. I said it is not necessarily a sign of desperation (your contention), and that it might actually be a smart move.

Also FTR, I'm bullish on Tivo the company but presently have no position in the stock.

Andre



To: Wyätt Gwyön who wrote (1710)6/28/2005 7:45:55 PM
From: Road Walker  Read Replies (1) | Respond to of 2093
 
BTW, that "free" box was factory refurbished, a returned product. They can't sell it as new... many companies dumpster their returned hardware. TiVo can get subscriptions fees for years off of their garbage.

Is that an advantage, or what?

Are you short?


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