Essay About Features Of Tivo And Apparent Strengths Tivo

Tivo Case Study
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Tivo is a digital recorder that helps viewers to take control of what they watch. The
features of Tivo are recording programs as per viewers’ request, suggesting the
programs according to viewers’ habits, ability to skip commercials, and so on.
The TiVo service provides consumers with a variety of specific features. There are
many factors that could facilitate its features:
a. Recording the programs – easy to record, stop, rewind, and schedule recording the
shows.
Despite the apparent strengths TiVo incorporates, there are many factors that make its
adoption difficult. Firstly, the consumer has a great disparity in defining and viewing
TiVo. The degree of awareness for TiVo remained weak and consumer remained inert
because it is not their priority to improve TV viewing. After fourteen months into the
launch, TiVo had only signed up 42,000 subscribers, with a current rate of 14,000 new
subscribers per quarter. With 102 million TV-watching households in the US, that was
only about 0.04% penetration. Therefore, from the data we could see that TiVo has not
caught up a substantial awareness of the consumers. Secondly, the price seemed too
high to be accepted by customers. The TiVo black box was priced $499 for a model
with up to 14 hours of recording capacity and $999 for a model with up to 30 hours.
The price was more expensive than most TV sets and more than twice the price of a
good satellite system. Thirdly, Salesmen in distributors turned over fast which made it
hard to train them explaining to customers properly. In addition, there were various
ways for salesmen to sell TiVo.
TiVo users primarily consist of young professionals, between the ages of 23 and 45, and
had middle average annual income. In this regard, members with this kind of features
are best suited for TiVo. We can also imply that people