Thursday, November 29, 2007
TiVo Shifting to Ads, CooperationTiVo is maturing as a company thanks to the hard lessons of operating in the world of Big Media. Advertising revenue, not subscription fees, will determine the companyh's survival.
NBC will sell interactive ads that will run on TiVo's platform. While TiVo has been trying to generate ad revenue for some time, allowing NBC to sell the tags is an important shift in the company's thinking. NBC will be able to leverage its relationships with advertisers in the digital realm, and TiVo will settle for a smaller share of the ad dollars.
Interactive ads enable consumers to make impulse purchases or obtain more information immediately, and TiVo's platform enables that interaction without sacrificing the viewing experience.
TiVo's early fights were with cable companies over access to consumers, and they've learned to play nice there. Now they are realizing that the TV Networks have to lead the conversation with advertisers to maximize profits. TiVo has come a long way from being a box maker, but the next year will be pivotal if the company is to ever live up to its potential.
By John Gartner at 01:57 AM | Comments (0)