Another TiVo No Sale

by

CORRECTED 7/8/07 

As if we needed another example of how totally clueless the folks at TiVo are, here comes a $299 Lifetime Transfer on units you bought Lifetime for prior to 6/15/03. (It just so happens that is 4 years ago – know what I mean. 😉 )

You must buy a Series2 DT80 (only) by 7/23 and transfer service by 8/31.

Why anyone would want to give up the value of their current Lifetime Service and pay another $299 for the box & service on a DT80 is impossible to see. If your old box were dying, you could probably get TiVo to repair/replace it for much less (around $150 if I recall.) How long are you sticking with SD?

When the S3 was launched, for several months TiVo offered Lifetime transfer for $200 and you got one year of service on the old unit. For the same money you got more service on a unit that had a longer term future.

If you’ve been anxious to replace an old unit with a new SD DT one, and don’t care about selling the old Lifetime unit, I suppose this is better than the rediculous service plans now offered.

Is this a great deal for TiVo? TiVo is desperate. Desperate for cash, and desperate to drop the Lifetime units that don’t produce revenue on the income statement.

But TiVo thinks it loses money on $299 Lifetime sales. Putting aside that that is just another idiotic TiVo idea, TiVo is incurring a big hardware loss for the cash and the accounting impression that ARPU is going up; and TiVo is limiting this to older, nearer-death TiVoes instead of newer ones that will stay around longer producing no subscription revenue. 

If you believe TiVo, then they are borrowing from the future to make things look better today.

I expect very few people to take advantage of this offer.

As for TiVo, CFO jumping ship, press releases announcing ‘Hey, we made a sale,’ big declines in gross adds, higher churns, and goofy specials don’t look good.

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5 Responses to “Another TiVo No Sale”

  1. hdtivo Says:

    It shows the powerful draw of Lifetime that some people will take this rather poor deal anyway.

    If TiVo really lost money on the Lifetime deal, why would they want to re-up for another loss with a customer?

    The answer is TiVo’s story about Lifetime was nonsense – as I showed 15 months ago. TiVo is anxious to get some people to give up their valuable position and make TiVo additional money on another sale.

  2. Could TiVo be coming back around to Lifetime? « HDTiVo Blog Says:

    […] TiVo be coming back around to Lifetime? TiVo is offering a special allowing certain Lifetime subscribers to ditch service on their old box and purchase a $99 box plus […]

  3. HDTiVo Says:

    I am going to start estimating Q2 Gross Adds at 45-60K and take 55K as my pick. Slight optimism based on Father’s Day S3 deal and Lifetime S2DT deal.

  4. HDTiVo Says:

    It seems that the box is included for $299. I corrected the article in red, but my overall impression remains the same.

  5. TiVo Q2 Estimate « HDTiVo Blog Says:

    […] TiVo Q2 Estimate I started estimating Q2 Gross Adds at 45-60K and took 55K as my pick. Slight optimism based on Father’s Day … […]

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