Has TiVo's Fate Been Sealed?
ChipGuy writes "Things are getting bleak for TiVo, reports the New York Times, and adds that TiVo blew a major opportunity to team up with Comcast. And that might have cost CEO Michael Ramsey the job. Om Malik writes that 'The fate of TiVo also highlights the dilemma facing a lot of "exploding TV" start-ups. The technology does not necessarily translate into profits and a business,' and breaks down the financials -- over half a billion dollars in losses so far. PVRBlog adds that 'When the story of TiVo is written, this Comcast negotiation could be the point when the company's outcome was decided.' More reactions here."
The product was good, service was good but the rest of the business world (mainly M$) did
As rich and powerful as Microsoft is, they just don't have the kind of power you think they do, especially when it comes to markets outside of computer OSes. I can't believe you're sitting here blaming Microsoft for the fact that Tivo is a poorly run company...
The vast majority of business failures people think were somehow caused by Microsoft were really caused by the ineptitude of the company that went under. When Microsoft goes after a market, a well-run company will push them back (see: Quicken vs Microsoft Money). A poorly run company? Well... Darwin's law kicks in. Is that really Microsoft's fault?
and why I would never buy any piece of hardware that relies on a subscription. All the more if they offer a "lifetime" subscription where you pay up front. People have fallen into this trap with health clubs as well - what is the chance that the company behind the hardware will outlive me?
My rights don't need management.
TiVo lovers (I used to be one myself) think this product is terminally cool because, when a TiVo box works correctly, it makes TV watching 100 times more enjoyable. But that, by itself, is not "success". Tivo lovers, though fanatical, are few and far between. TiVo has simply made too many mistakes. The platform is too klugy, so there's always been reliability issues. And if it does break, you have to send it back to the factory, for fees that approach the original purchase price. Even if nothing ever went wrong, most consumers just don't see such an expensive gadget as being worthwhile for what it does. This company is circling the drain.
Sorry to burst your bubble, but good "technology, concepts, and products" is not a guarantee of success. There are other factors: marketing, management, timing, access to markets, and just plain luck. The few techies that get rich making some amazing breakthrough get all the press -- but most innovative tech companies fail.
Which is true of all business. You can get very, very rich, but not without taking very, very big risks.