ReplayTV Switches To Subscription Model For New Unit

aclute writes "ReplayTV is going to move to a subscription-fee for it's new 4500 series in order to "meet the needs of national electronics retailers with lower overall costs and increased promotional opportunities" and "ensure the long-term success of our ReplayTV retail strategy". No talk yet of the cost or a lifetime/yearly option yet. Looks like TiVo might have had the right idea after all." I still want to get a 4500, but the vendor lockin with someone who's being sued by *everyone* does throw some cold water on desire for the machine.

Comments

EOL != SOL

[Lxy]

This new pricing model does not apply to SONICblue's current ReplayTV 4000 or to prior offerings, which will continue to include a lifetime service subscription

Sounds to me like they plan to continue support for the 4000. End of Life does not mean that they will stop supporting it as if it never existed. It just means they will pull it from retail shelves to favor the 4500 and their new subscription policy.

Text

[namtog]

SONICblue To Implement Service-Based Pricing Model For New ReplayTV Products; New Model Uncouples Service Fees From Retail Pricing to Better Meet Retailers' Needs
April 25, 2002 08:03:00 AM ET

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 25, 2002-- SONICblue(TM) Incorporated SBLU announced today that it will apply a service-based pricing model to new ReplayTV(R) products -- beginning with its forthcoming ReplayTV 4500 series, the next generation ReplayTV offering. Separating service subscription rates from the retail price of the ReplayTV unit, SONICblue's new pricing model will better meet the needs of national electronics retailers with lower overall costs and increased promotional opportunities.

"We intend to achieve 30% market share for digital video recorders this year based largely on our entry into mainstream retail channels," said Steve Shannon, vice president, ReplayTV product marketing, SONICblue. "The addition of new models and pricing are just a few of the changes we'll be making to ensure the long-term success of our ReplayTV retail strategy."

Further details of SONICblue's service-based pricing model will be made available when the new ReplayTV 4500 series is officially unveiled this summer.

This new pricing model does not apply to SONICblue's current ReplayTV 4000 or to prior offerings, which will continue to include a lifetime service subscription. The ReplayTV 4000 line will end of life with the launch of the new ReplayTV 4500 series.

About SONICblue Incorporated (www.SONICblue.com)

SONICblue is a leader in the converging Internet, digital media, entertainment and consumer electronics markets. Working with partners that include some of the biggest brands in consumer electronics, SONICblue creates and markets products that let consumers enjoy all the benefits of a digital home and connected lifestyle. SONICblue holds significant financial assets, global marketing capabilities and a focused technology portfolio that includes Rio(R) digital audio players; ReplayTV(R) personal television technology and software solutions; and Go-Video(R) integrated DVD+VCRs, Dual-Deck(TM) VCRs, and digital home theater systems.

Except for the historical information contained herein, the matters set forth in this press release, such as SONICblue's release of its ReplayTV 4500, implementation of the new pricing model, SONICblue's introduction of new ReplayTV models and pricing options, the ability to achieve lower overall costs and increased promotional opportunities, entry into mainstream retail channels, the intended 30% market share in the digital video recorder market, its success in better meeting the needs of the mainstream retail channel, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to the ability of the Company to enter into licensing agreements with manufacturers, the ability of the Company, its suppliers, retailers and distributors to meet scheduled release dates, the impact of competitive products and pricing and of alternative technological advances, the outcome of SONICblue's existing litigation concerning the ReplayTV products and other risks detailed from time to time in the SEC reports of SONICblue Incorporated, including its annual report on Form 10-K for the period ended December 31, 2001. These forward-looking statements speak only as of the date hereof. SONICblue disclaims any obligation to update these forward-looking statements.

Note to Editors: SONICblue and Dual-Deck are trademarks of SONICblue Incorporated. ReplayTV, Go-Video, and Rio are registered trademarks of SONICblue Incorporated. All other products and brand names as they appear in this release are trademarks or registered trademarks of their respective holders. All specifications may be changed without notice.

Contact Information:
SONICblue, Santa Clara
Tracy Perry, 408/588-8086 (Investor Relations)
tperry@SONICblue.com
or
The Bohle Company
Jason Wanacott, 310/785-0515 ext. 211 (Press)
jason@bohle.com

Re:G-Guide?

[shayne321]

I'm not familiar with G-Guide, but I don't think they're not using it in order to force you into subscribing. When your PVR phones home it checks to see if it's subscribed and and enables/disables features accordingly. Just stabbing in the dark, but PVRs keep guide data about two weeks out, so unless G-guide provides that much data (complete with subject data, actors, rerun info, etc) it wouldn't be feasible.

With the new Tivo version 3.0 software that is coming Really Soon Now, stand alone tivos will start getting their guide data over cable by broadcasting it over cheap timeslots and having the tivo tune in to record it. Apparently Tivo found out it's cheaper to buy broadcast time at 4am on discovery and foodtv than to license/support dial-ups for this purpose. The integrated DirecTivos have been getting their guide data and even software upgrades over the dish for a while now (since version 2.5 if I recall). Sometime during the 2am - 5am hour if it's not recording anything it tunes itself to a "reserved" channel which contains the data it needs. Tivo units still phone home nightly though to check your subscription status, report anonymized viewing statistics, and report your PPV purchases (directv units only).

Shayne

Re:SOL if you have a 4000?

[jbum]

The reason the device has to make a phone call is to get guide data, which makes the interface much easier to use.

Both Tivo and Replay allow you to "program like an advanced VCR" as you describe. As a Tivo user, I can tell you, that programming "like an
advanced VCR" is a pain-in-the-ass, and it's much easier to simply say "give me all the new episodes of 'The Osbournes'". The only reason for doing a time-based recording is when a particular show is on a heavy-repeat schedule and you only want certain showings (like "The Daily Show"). Otherwise, it's much easier to schedule recordings from the program guide. This means you still get your show even when the network moves it around.

Once these devices are hooked up to the Internet, they can get their guide data from there, and the phone call isn't needed.

Alternately, once the cable-companies start offering PVR capabilities in settop boxes (which they will), the guide data will be provided over the cable. Just as the satellite companies provide data over the satellite feed.

Sadly, once the cable companies start offering PVR, they will also eliminate consumer-friendly features like commercial skipping (or they'll embed the commercials in the interface itself!).