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News
TiVo Taken by Surprise in HDTV Growth
Wednesday, August 29th, 2007 at 4:00 PM - by .(JavaScript must be enabled to view this email address)
TiVo lost 145,000 subscribers from its base of 4.2 million, took a US$11.2M write down and CEO Tom Rogers told analysts that the growth of HDTV surprised TiVo, according to USA Today on Wednesday.
"Were at a turning point in the retail environment," CEO Tom Rogers told analysts. HDTV growth "progressed at a pace that surprised many in the industry, including us."
The last quarter saw a decline in TiVos most profitable source: direct subscriptions. About 2.5 million TiVo subscribers still subscribe via DirectTV. When DirecTV introduced its own DVR, and dropped the TiVo unit, some subscribers were annoyed. Currently, satellite TV customers cannot use a TiVo to program unattended channel changes for recording.
Even though Mr. Rogers was enthusiastic about new deals TiVo has struck with Comcast and Cox in the northeast, investors are worried that TiVo cannot compete as Cable and satellite carriers have introduced their own integrated HD DVRs. TiVo was hurt by its delay in shipping a lower cost High Definition TiVo unit while consumers switched rapidly to HDTV in 2007.
Customers are finding it increasingly difficult to obtain set top boxes that dont have integrated DVRs."That battle for a media hub device in the living room is heating up," said Brian Coyne of Friedman Billings Ramsey.
TiVos stock was down more than 4 percent after posting a US$17.7M loss for the last quarter.
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