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Tivo To Also Offer Ads Your Way
FangVT writes "InfoWorld is reporting that in mid-2006 Tivo will begin allowing subscribers use keyword searches to look for information on specific products or services. The article does not contain much information but ultimately says 'Throwing in lots of hedge words to soften the idea of advertising once again mingling with TV content, TiVo described the service as non-intrusive, relevant, interactive advertising on an opt-in basis.' Tivo's own press release says, 'For the first time, advertisers will have the ability to deliver television advertising, on demand and targeted to consumers, without the limitations of traditional television media placement.'"
1) The ad service will be opt-in, but how much do they plan on nagging customers to do so? And who wants to be nagged about having ads, anyway, especially if you bought the thing to avoid them?
2) Targeted ads are certainly more effective, as Google has shown, but it's still advertising in a space buyers have come to expect no ads or ad-skipping.
3) TiVo built the entire model of PVR around the ability to skip ads and record shows more simply than on a VCR. They could do serious damage to their brand image if they embrace advertising after professing to help people avoid it.
While I'm glad they plan to make it opt-in and targeted, I'm still skeptical that they'll find profit at the end of the advertising rainbow by alienating their customers.
Under capitalism man exploits man. Under communism it's the other way around.
Um, opt out.
I've had my TiVo for over 4 years now. I love it to death. I think that TiVo did a hell of a lot of things right. Some quick examples:
1. Unlike, say, Microsoft, they never discouraged their users from hacking their boxes. As a result, a huge community of TiVo hackers emerged (see http://www.tivocommunity.com/). I upgraded my TiVo's 30 gig hard drive to two 120's, and installed a cachecard/network card combo from 9th Tee, which means I can do fun tricks like scheduling shows and season passes from the road, or watching shows in my bedroom on my XBOX.
2. Really great support. I've only had to call TiVo a couple of times, both for channel lineup issues, but they were always extremely friendly and helpful over the phone. For example, after I moved into my new house, I realized that Adelphia had just upgraded the cable in my area, and TiVo didn't have the lineup yet. So I called support, and the next day, TiVo called me back to tell me that my lineup was added. Simply awesome.
3. Choosing Linux. When I telnet into my TiVo, I get a bash shell. I've installed an ftp server, web server (TiVoWeb), and even installed cron. How cool is that? Plus, this excellent decision has led to new software being developed exclusively for the TiVo (such as a caller id display that uses the TiVo's built-in modem, so you can see who's calling without getting up off the couch). Simply brilliant.
4. The interface. They obviously put a ton of work into it, and it really shows. It just kicks so much ass.
Now obviously, they dropped the ball in a couple of areas. The Comcast merger was just a more recent one. I think these are the two biggies:
1. I think that their biggest problem has always been slow adoption; as long as I've had the thing, I've been seeing ads pop up on TiVo Central giving me hot deals on new TiVo units, which I'm supposed to share with my friends and family. Great, I can save Dad $50 on his new unit. But if they really expect me to convince Dad that he can't live without a season pass on those Seinfeld reruns he loves so much, then they should be giving me the 50 smackers. I'd probably have 10 people signed up under me right now if I got some sort of compensation for it. (By the way, click here [freeminimacs.com] to get a free Mini Mac!):-)
2. Too expensive. The hardware and service together really do cost too much, unless you got in early like I did (back when lifetime service was $200). They should do what my damn cell phone company does: Knock the hardware down to like $99, and make me pay a very affordable $9.95 a month. If I try to cancel before 2 years are up, hit me with some obscene early termination fee. Yes, I hate it when cell phone companies do this, but that's how they stay in business. Besides, it's not like I'd be foolish enough to cancel my TiVo service anyway. TiVo is heroin. So far, I've paid $499 for TiVo and lifetime service, so TiVo won't make any more money off of me. If they were using my above plan, I would have paid in $589 so far, with more coming in every month.
I would really hate to see TiVo go. I hope they don't. But I suspect that even if the service dies, thanks to the openness of their hardware platform, someone (maybe me) will figure out how to write a script to pull show data off of Yahoo! TV or something. And with Microsoft and MythTV and several others entering the PVR market, there's no question that TiVo's invention is here to stay.
It is really great that TiVo is going to offer ads our way, thats the way it should work, and ultimately, lead to better advertising.
Check out my website: Playfully Clever
I'll direct you to this helpful timeline for capitalism:
Step 1 - Free, no ads
Step 2 - Free, with ads
Step 3 - Pay, no ads
Step 4 - Pay, with ads
Tivo is between steps 3 and 4 right now. As with every other service, it will soon be at step 4.