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TiVo CEO agrees that the Series 3 DVR is overpriced

Those who want a TiVo Series 3 HD digital recorder but are unwilling to pay close to $800 for it may be pleased to learn that they are not alone. TiVo CEO Tom Rogers said in a conference call that the company must drop the price of its high-definition recorders in an effort to boost its current slumping sales.

“We will be highly focused this year on moving forward with a lower-priced, mass appeal High-Def unit, which will allow us to much better participate in the HD television trend,” said Rogers to analysts in a recent earnings report.

Rogers states that the growth of HDTV sales is a wave that the company has thus far been unable to ride due to the high price of the high-def TiVo DVR.

“The other clear learning at retail is that High-Definition television sets are the most important new consumer electronics item,” Rogers said. “Given the price of our HD unit, we were not able to meaningfully participate in that trend. This also clearly contributed to lower sales volume compared to a year ago, when this trend was nowhere near as significant.”


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By Delegator on 3/14/2007 8:42:15 PM , Rating: 3
The previous poster is, unfortunately, correct. The cost model for TiVo simply doesn't hold up against the DVRs available from cable companies.

There is no doubt that TiVo is the superior product. Its interface and functionality are so, So, SO MUCH BETTER than the crappy Scientific Atlanta box I have from Comcast. I'd be willing to pay a premium for a real TiVo over the lousy unit I have.

But, let's compare price:

Cable HD DVR: $0 purchase + $7.95/month for DVR service

TiVo HD DVR: $800 purchase + $12.95/month for program guide, + possible charges for cable cards

It didn't help that TiVo's offer to let me pay $200 to transfer the lifetime service I have on my series 1 box (which I've upgraded with an extra 120GB hard drive) was so insulting. Let's see: I paid $149 for lifetime service when I bought it. Now, for the privilege of moving that lifetime service, you will charge me 18 months worth of monthly service fees on top of an $800 piece of hardware?

Since DirecTV ditched them, TiVo's only hope is to succeed as a provider to cable companies. I've been hearing abotu a TiVo/Comcast deal for over a year now. If it doesn't bear fruit by the end of 2007 I don't see TiVo surviving as an independent company.




By rklaver on 3/15/2007 2:17:44 PM , Rating: 2
Ditto, when I upgraded to HD I gave my TiVo to my mom and Charter gave me probably the same Scientific Atlanta box. What a POS. The interface is horrible on it. But I agree I couldn't do the $800 either.


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