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AdAge Predicts Tivo will Fail

geddes writes "Under the obnoxious headline More U.S. Homes have Outhouses then TiVos, Advertising Age has published an article with a few good points: 1) Tivo/ReplayTV/UltimateTV aren't making any money and their growth is declining. 2) Cable and Satellite TV services are slowly rolling out PVR on thier own boxes. So 3) PVR will become a standard feature for most television users but become as unbranded as programmable VCRs."

20 of 459 comments (clear)

  1. Brand recognition by Duds · · Score: 5, Interesting

    True, there will soon be as many Tivo brands as you care to name.

    But people will still call them "Tivo"s.

    It's like in the UK, every vacumn cleaner is usually referred to as a "hoover". Or in the US "Xerox".

    You cannot buy that brand recognition. Assuming Tivo themselves don't screw up, they will have a healthy share of the PVR industry for a decade or more.

    1. Re:Brand recognition by jocks · · Score: 2, Interesting

      The counter to that is the "Dyson" in the UK, it became an object of desire amongst UK housewives and broke the brand loyalty to "Hoover".

      In these days of recession people tend to start looking a bit more closely at what they are paying for. Brand name or not, if it is not good people will not buy it.

    2. Re:Brand recognition by Anonymous Coward · · Score: 1, Interesting

      "You cannot buy that brand recognition."

      Amusingly, the companies concerned actually spent time and money in the courts attempting to stop people from doing exactly that. In the UK satirical magazine Private Eye, you frequently see letters from solicitors complaining about the magazines use of the word Biro whenever they don't capitalize the B. They usual print the letter under the title `What a way to earn a living`!

  2. Except.. by Enry · · Score: 4, Interesting

    Except for the fact that AT&T broadband and DirectTV are already rebranding Tivo for their set top boxes. There aren't any real competitors yet aside from ReplayTV.

    Ooh...but I like the list of related articles:

    "Without advertising, we will damage this country"
    "72.3% of Tivo viewers skip commercials"

    Then again, this is like MSFT reporting that Linux is pretty much dead.

  3. I considered buying a TiVo by Inthewire · · Score: 2, Interesting

    When I read about 'em I thought it was a great idea - trap the shows you want to watch, batch them, sit down and watch the whole lot of them when I felt like it. Then reality set it. I despise television. I don't even own one. So having a TiVo would do me no good.

    --


    Writers imply. Readers infer.
  4. Comparing outhouses to Tivo? by Alcohol+Fueled · · Score: 3, Interesting

    Umm.. Isn't that a little weird, comparing a little cramped place to take a squat in to a thing to record TV shows on? Sure, there may be more homes with outhouses, but do they really want the outhouse? Probably not. Everyone would LOVE to have a bathroom from MTV Cribs in their house, but they can't. More people probably want a Tivo, but maybe can't afford it, (I don't know the price, so let me be.. ;). Besides, I would think Tivo, or something like it, could be around for a while. Not everyone can be at home to watch their favorite TV shows, and want a way to record them other then low quality VHS tapes.

    --
    Ah am not a crook! (\(-__-)/)
  5. Of course it will fail by RedWolves2 · · Score: 2, Interesting

    When you have to pay $13 a month to receive the channel listing through TiVo when you already get them through your cable box it is not worth it. Replay TV has a free monthly service but you pay outragous prices to get it.

    I would much rather get it from my cable company for $10 extra a month and no upfront costs. Even if the features aren't as good as TiVos.

    1. Re:Of course it will fail by mosch · · Score: 3, Interesting
      I have tivo, and I've bought tivos for a number of friends as gifts. Every single unit I've purchased either has a lifetime subscription (purchased for prices ranging from $100 to $250), or has no subscription cost at all (DirecTiVo on a system that has the premium package).

      As far as TiVo from your cable company goes, there are a number of such services available from companies like nCube, and don't expect them to sell for $10/mo, because storing everything at the headend means bandwidth limitations greatly restrict the number of people who can use this service, so it'll be expensive, and probably be billed at rates similar to impulse pay-per-view movies.

      More likely is that more cable companies will follow the lead of DirecTV and AT&T, and create settop boxes that license TiVo's technology, so TiVo will prosper, even if they're selling less hardware direct to the consumer.

  6. Re:TiVo's problem by Enry · · Score: 3, Interesting

    On the one hand, you have people who say "I don't watch TV", when what they mean to say is "I don't watch CRAPPY TV". There's a lot of good shows on that are on at times when people normally wouldn't watch them. I can't stay up late to watch all of Adult Swim on Cartoon Network, so I have my Tivo record it and I can watch it the next day.

    On the other, Tivo does have a problem with explaining how it works. It's a lot more than saying "it's a really good VCR!". That's where
    the existing user base comes in, as it's a lot easier to show someone how it works and what it does than listen to the PFY at BestBuy practically reading off the sales sheet and not know anything more about it.

  7. DirecTivo has been re-branded "DirecTV PVR" by K8Fan · · Score: 5, Interesting

    I have a DirecTivo, and love it. I couldn't imagine life without it. Recently, I got a letter from DirecTV that from now on, my DirecTivo service was going to be referred to as "DirecTV PVR" and the monthly charge was going to be cut in half.

    OK. The service hasn't changed. It's still Tivo software and interface. The monthly cost is half of what it was. The only down side is it records more "Special Preview" nonsense from DirecTV. Tivo still gets paid, and DirecTV has more reason to sell this great technology. What's the problem supposed to be?

    --
    "How perfectly Goddamn delightful it all is, to be sure" Charles Crumb
    1. Re:DirecTivo has been re-branded "DirecTV PVR" by Scryber · · Score: 2, Interesting

      What he said.

      The Tivo/DirectTV partnership means that Tivo should be around as long as DirecTV is. Not that that is a sure thing (hear about the near extortion by the NFL for next year's Direct Ticket licen$ing?), but I can't believe that Satellite TV won't exist even in today's pro-cable-monoply climate.

      Furthermore, that "Special Preview" promotional stuff exists on a portion of your hard drive separate from your recorded programs so it doesn't "take up any space." So like you say, what's the problem?

  8. Re:Control by Greedo · · Score: 5, Interesting

    Will cable companies remove features, like the ability to skip ahead 30 which they feels gives users the ability to skip commercials? Probably. Given the choice between pleasing consumers, or pleasing advertisers and shareholders (which they're leagally bound to do!) the companies always stay with the advertisers.

    And therein is the biggest problem in the media industry: content providers are too lazy to adapt to changes in technology, so they fight innovation to maintain the status quo.

    Record companies and file sharing. Cable companies and PVRs. Et cetera.

    I own a PVR (not a TiVO, but a higher-end satellite receiver with PVR built-in). It's fan-frickin-tastic. My VCR has been collecting dust for the last year and a half.

    And yes, I skip msot commercials. But why do I skip them? 'Cause most of them suck.

    There are commercials, however, that I do watch. And often rewind and watch again. And call my wife over to watch with me. These are the funny, intelligent, clever or bizarre commercials. Like the IKEA lamp. Like one for Tourette's syndrome. . Like the Mini and Nissan ones (just 'cause those songs are infectious).

    If companies just made better commericals, I don't think people would skip them as much. They skip them because they are boring ... and they are everywhere.

    At some point (and we've probably reached it), advertizing becomes so ubiquitous that it stops working. People tune it out. Advertisers think the solution is to put up more ads, in more places, in unexpected places. It's only going to piss people off more.

    The solution is to make better ads. Why don't they realize this?

    --
    Tuus crepidae innexilis sunt.
  9. Licence by codemonkey_uk · · Score: 4, Interesting

    In the UK BSKYB have licensed the TiVo technology to make their Sky+ boxes. So TiVo are alive an well as long as BSKYB is alive and well, and seeing as BSKYB is the dominant satellite television network in the UK, I'd say that in the medium to long term, TiVo is pretty save as a company, if not a consumer unit.

    --

    Thad

  10. Re:I agree by Ciannait · · Score: 4, Interesting

    When you can also write some neat front-end software for it that provides for all of the TiVo features (too many to name here), and can still bring it under $200, I'll think about it. But only if I don't have to be a sysadmin to use it. I'm a sysadmin enough at work; I want my PVR to not require an intimate knowledge of the command-line.

    Oh, and don't forget to package it in a nice little black (or silver) box that fits within my entertainment center.

    We won't even get into DirecTiVo here. Mmm, Dolby Digital.

    --
    A good traveller has no fixed plans and is not intent on arriving.
  11. Where are the generic PVRs? by Animats · · Score: 3, Interesting
    Why aren't there cheap generic PVRs yet? This should have happened by now. Integrating a PVR into a DVD player would provide a nice value-added feature.

    Or is there something in the DVD agreement that prohibits this?

  12. I own three TiVos by wboatman · · Score: 2, Interesting

    Well two working, and one for parts, and I have to agree that Tivo (the company) is the walking dead.

    I declined to buy lifetime subscriptions to their service since I didn't expect them to be around that long, and it was the lifetime of the individual TiVo box. There is a reason I have a TiVo that is just for parts.

    Both of the working ones have web access, network cards, and two huge drives. I plan to add the 4 drive adapter in the near future.

    It was a cool idea. But with several open source projects to build a PVR out of commodity parts, and the potential to tie several homebuilt ones together in a PVR cluster, I really don't see what TiVo has to offer to the people that are most likely to buy a TiVo. Especially since you can get TV guide information with any of the ATI TV tuner cards.

    It is a shame that TiVo (the company) got to spend all of that money showing people what could be done, only to be trampled by all of the cable box and satellite decoder manufacturers running out to implement the "TiVo" idea.

    Such is life.

  13. Re:Just like cable decoders by Schnapple · · Score: 3, Interesting
    PVRs will obviously be subsumed into the TV unit itself
    Am I the only one that sees this as either a bad thing or something that won't catch on in the way people are implying? I like having everything separated into components and I generally see people who prefer TV/VCR combos as less sophisticated. Plus there's the whole bit of having to take the entire thing in when the VCR breaks. Plus, its not like VCR's are in every TV, so what makes them think the PVR will make it in?

    Of course, TiVO, being a small shit, is easier to target by the TV networks. How will the TV networks sue all the TV makers? That's like all the tire manufacturers suing all the car makers - chicken/egg thing again.

  14. Bad shows on during YOUR viewing period you mean. by Viewsonic · · Score: 3, Interesting

    All the good shows are generally on at bizarre hours when people dont have the time to watch them, or are at work, or just are too busy in general. Tivo has made TV worthwhile again, with it, you weed out those shows you "dispise" .. You'll NEVER see them again! EVER ! How cool is that? To me it sounds like TIVO is your holy grail. I had basic cable because when I watched TV nothing was on. It was all crap. A friend got a Tivo and I liked how it grabbed Sienfeld at the odd hours .. I got my own, and now I have full DIGITAL cable, with 6 HBOs, and my Tivo is OVERFLOWING with documentries, great comedy skits, and some really fantastic movies on Independent Film Channel! TV *rocks*, but only with a TIVO.

  15. Re:Some cable companies are rolling their own by mosch · · Score: 3, Interesting
    Time Warner isn't writing that software, they're just customizing an interface to other software. If it's basic PVR functionality, then it's using Keen Personal Media's product, if it's the advanced version (where you can record programs by name and such), then it's by Metabyte. Either way, it's not an inexpensive cable box, a box such as your describing has a cost of somewhere in the neighborhood of $350 to $500 per unit, in volume.

    For better or for worse, the costs are being offset by revenue generated by targetted advertising (the SA8000 PVR stuff can do personalized ad insertion), and selling your viewing habits. If you'd prefer to pay $10/mo forever in order to receive targetted advertisements, that's your decision, though I tend to think that a one-time $250 payment is a much, much better deal.

  16. Re:TiVo's problem by Ed+Avis · · Score: 2, Interesting

    I think that fundamentally, I object to the idea of the thing having a modem :-P. It would be far better if no expensive 'infrastructure' were needed at all - I don't have to pay for an infrastructure to use my oldstyle VCR or microwave oven, so why do it for hard disk video recorders?

    I'm sure the money that TV networks get by restricting access to their listings is piddling at best. It would make much more sense for an EPG to be broadcast alongside each channel, then anyone could make tivos without the need for banks of modems and technicians to keep it all running.

    --
    -- Ed Avis ed@membled.com