Main > Archives > 2006 > October > Why Google Should Buy TiVo
Monday, October 16, 2006
Why Google Should Buy TiVo
Now that Google wants to own online video through its YouTube purchase, the path has been cleared for
GoogleTV to index all programming and make it searchable online and through the remote.
If the company can afford $1.6 billion for a profitless platform, certainly they can afford $700 million for TiVo (a slight increase over their current market cap) to get access to the great interface and demographic data. (This idea just came to me, but I did find one reference to rumors of a Google-TiVo deal from
18 months ago).
Think about -- search for video content online, and then get the best related TiVo content automatically recorded without leaving your keyboard. TiVo has a version of this service now, but adding Google's advertising solution and search capabilities would greatly increase its reach.
Google is starting to have the relationships with TV content providers, and streamlining the search process between online and TV would be huge. Why settle for the small screen when you can get the content automatically uploaded to your DVR?
Also, Google could mine the data that TiVo collects about consumers and develop custom contextual video ad content. TiVo's urgent needs are a bigger audience and inroads into advertising. Google would benefit from the TiVo interface, and a superior viewing experience. What's not to like?
Posted By John Gartner at 01:15 PM
Permanent Link: Why Google Should Buy TiVo
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(2) Comments on Why Google Should Buy TiVo
What is not to like?
Everything!
1. TiVo has never been profitable. Not that it is an immediate concern, however, a path to monetizing is important and if Google did not buy them yet, there is a good reason.
2. TiVo operability is available on your computer now through Microsoft Home Media Center. Who needs TiVo after the big MS is incorporating it in their operating system?
3. TiVo has saturated their market for a reason. The box is too expensive and the installation is complex. The service fees are an extra charge.
4. The newest greatest version of TiVo at $800 U.S. plus drew a yawn.
Do you own Tivo Stock? I believe that is your reason for What's not to like? Sell it now!
Comments by Brant : Monday, October 16, 2006 at 04:35 PM
1. Profitable? How has that stopped Google from buying anything? Where have you been? They're building something much grander than the sum of it's parts.
2. Ahh, Microsoft and Google are competitors. How much official integration do you think there is going between MS Media Center and google advertising? TiVo DVR is a consumer electronic device that utilizes a PC OS to deliver it's value, that the other way around.
3. Over a 3-4 year period, TiVo, TiVo is less or no more expensive that an middle of the road media center PC, with a much better interface and melds right into the home entertainment experience, and it simply works.
3b. I agree the service fees are an issue, but that's exactly the opportunity with Google. How about free service as long as you agree to some directed advertising? Google can afford to this this, and it fits right into their strategy.
4. Find a better DVR for $800. The only upcoming competitor it may have is the upcoming retasked Comcast/Tivo DVR, which will be available in Comcast markets that utilize certain motorola based DVRs.
I don't own stock in TiVo, and I think a TiVo acquisition from Google would be the best thing for TiVo, and it would be very good for Google in the long run to own DVR patents, etc...TiVo would get an infusion of capital and could place an new invigorated focus on innovation and keep the platform compelling to use...thus grow Google's TV advertising base.
5. Lastly, it's so apparent that you're TiVo short-seller.
You have no interest in seeing the company succeed, you just want to profit or make up some financial losses...
Comments by Dean Anders : Wednesday, October 18, 2006 at 03:13 PM
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