Friday, August 10, 2007

TiVos Should Be Given Away

Here's a bold move for TiVo that could move the company from niche player to dominant force: Give away the DVR boxes for free.



TiVos start at just $100, and even the HD version sells for $300. Assuming that the boxes last 2 years, that between $5 and $12.50 per month in cost, but that's nothing compared to the subscription fees and ad revenue that could be generated.

TiVo charges $12.95 per month, so subscription fees alone can recoup most or all of the cost, which is likely less than what consumers are charged. TiVo is just starting a partnership with Comcast, so they should split the cost with the cable companies who would share in the revenue. There's always the chance to up-sell boxes with more storage capacity and features.

But if TiVo gave away 20-50 million boxes, imagine how much the data about the viewing habits for both shows and ads would be worth. TiVo could tell the networks a more precise breakdown of who is watching and when, and advertisers would know whether 18 year olds or 55 year olds were fast-forwarding.

TiVo could be the mechanism for truly interactive advertising, like what Nike is doing with Dish Network. Full length ads, games, commerce options, you name it, it can be done.

We all know that TiVo is the best DVR platform going, and consumers will tolerate more ads and be willing to interact in exchange for access.

Posted By John Gartner at 01:32 PM
Permanent Link: TiVos Should Be Given Away | Comments (1)

(1) Comments on TiVos Should Be Given Away

If someone can't afford to pay $100 for a TiVo then they can't afford to pay $12.95 per month. They would just take out the hard drive and sell it. TiVo should charge even more for the hardware than they currently do to weed out these deadbeats.

Comments by Tom : Friday, August 10, 2007 at 02:53 PM

Post a Comment

Name:
Email:
WebSite:
Comment:
Remember Me
Subscribe