Essay Preview: Tivo
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TiVo, Inc. is an example of company that faces challenges similar to Harrison-Keyes. TiVo manufactures and provides service for digital video recorders (DVRs). TiVos creation of the DVR allows users to pause and rewind live TV, fast forward through commercials, and offers several recording options. Currently, TiVo is, “floundering in the face of generic copycats and the reluctance of many cable and satellite customers to have a second box” (Stone, 2007). TiVos success depends solely on the fees they charge for subscribing to the service. In the past, TiVo offered rebates for purchasing the DVR, however, the most recent Series 3 with HD, sells for $799 with no rebate. The price of the Series 3 units is more than double the Series 1 and 2 versions. Even with steady sales of the TiVo Series 3, the companys future depends on the continued sales of Series 1 and 2, as well as increasing overall service subscriptions.
TiVos strategies for increasing subscriptions are service negotiations with competing cable companies and expanding their service to Mexico. TiVo has struck
service deals with both Cox Communications and Comcast. “This year, Comcast customers will be offered the ability to download TiVo onto their existing box (no visit necessary from the cable guy)” (Stone, 2007). These deals are likely to increase, “because of TiVos strengthened position after winning a patent infringement suit last spring against EchoStar Communications” (“Broadcast Engineering”, 2006).
Finally, the company also plans to make its entrance at the international level to boost subscriptions. “TiVo is continuing to expand its distribution network with efforts such as the deal with Cablevision Mexico, which is owned by the broadcasting giant Televisa. Cablevision Mexico is one of the largest cable operators in Mexico City” (“Business Week Online”, 2006). CEO