OT: New Tivo Price Plans - No More Lifetime

[Fluffdaddy]

http://www.tivo.com/cms_static/press_82.html

New Bundled Offering, Flexible Pricing and Service Commitments Will Simplify Offering for Consumers

Mar 08, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- TiVo Inc. (Nasdaq: TIVO), the creator of and a leader in television services for digital video recorders (DVR), today announced new, simplified pricing plans that will make it easier for consumers to add TiVo to their home entertainment experience. For the first-time ever, through TiVo's direct sales channel, customers will be able to bundle together the purchase of their TiVo(R) 80-hour Series2(R) box and service at an all-in-one price, based on a one-, two-, or three-year commitment. There will be no separate price for the TiVo unit and TiVo(R) service. The specific bundle prices that will be available at www.tivo.com or by calling 1-877-BUY-TIVO are:

* The price for a TiVo box and a one-year service commitment is $19.95 a
month or $224 prepaid
* The price for a TiVo box and a two-year service commitment is $18.95 a
month or $369 prepaid
* The price for a TiVo box and a three-year service commitment is $16.95 a
month or $469 prepaid


TiVo developed these new pricing plans after completing market research among new and existing TiVo subscribers and by conducting extensive testing of the pricing options with randomized group of consumers in the marketplace. The results of the research were overwhelmingly favorable to the bundling together of the TiVo unit and TiVo service. As is the case with subscribing to the TiVo service today, an early cancellation fee will apply if service is terminated prior to the end of the chosen period. In the case of prepaid subscriptions, no refund will be made upon early termination.

"Over the past several months, we have done extensive research on our pricing strategy and distribution model with a focus on finding the simplest and most efficient way to increase sales and drive penetration of the TiVo service among consumers," said Tom Rogers, CEO of TiVo. "After extensive testing and evaluation of various pricing and packaging approaches, we will launch a subscription option that combines the sale of the TiVo service together with the TiVo box. This is great for TiVo subscribers who will now have the ability to get TiVo service with no upfront hardware costs."

As part of the announcement, TiVo is also announcing an update to its service-only options, providing consumers that purchase a TiVo unit at a retail outlet with the option to pre-pay for one-, two-, or three-years of TiVo service. The product lifetime service option will be eliminated next week. With the ability to pre-pay for TiVo service, TiVo is standing by its efforts to deliver choice to its customers and continuing to spread the "TiVo, TV Your Way" message.

"We are committed to providing our customers a great value for their dollar and enhancing our ability to add subscribers through more flexible pricing options," said Mr. Rogers.

The changes to the pricing structure and service-only options will launch next week. The changes will not affect TiVo's current base of subscriptions.

[dbfresh23]

Talk about nail in the coffin!!

I don't get it, rather then compete with Cable Companies they have priced themselves out of competition.

[Ryokurin]

So, I dont get it completely.

Are the basically going like cellphones and give the hardware away or very cheaply and then make it back on the monthly fee (only to hit you with a termination fee if you quit before you are suposed to) or did they just raise prices and created contracts?

[stanger89]

Does it really matter? You can get a Dish subscription for $19.99/month (40 channels), you can get a 2-room dual-tuner DVR Dish subscription for $30.97.

[Fluffdaddy]

But the Dish dual-tuner DVR is little more then a smarter VCR

[stanger89]

Granted, but it's still twice the tuners (like 2 Tivos) and comes with programming. So for less than the price of 2 Tivos, you get a 2-room DVR system plus programming.

[Ryokurin]

12.95 was just on the fringe of being a 'micro payment' its about what most professional people use a day in average to eat lunch or a decent dinner. At that price it didn't really hurt to pay it. 19.95 is around the point where you may miss it, and im sure its going to turn a few people away. Its not like internet service where the benefit is obvious, its something you need to experience for a while to see the benefits and I doubt people will want to spend that amount of money to see it, especially when the cable company is offering it for cheaper.

[dbfresh23]

I think that Tivo is basically making the mistake of overestimating their name recognition. Two thirds of all of Tivos customers currently pay $5 a month for Tivo service - $1 of which actually goes to Tivo ($4 to DirecTV), how in the world do they plan on expanding by actually increasing their rates? Sure they may be giving the hardware away now, but Tivos aren't all that expensive at this point anyway.

I don't know if it's true, but I read somewhere that after Tivo's contract with DirecTV expires in 2007, DirecTV no longer has to pay Tivo anything, yet Tivo is still obligated to provide the service for existing DirecTV customers.

I guess the question is really coming to - Who is eventually going to buy Tivo? My money is on Apple.

[aperry]

Originally Posted by Fluffdaddy

But the Dish dual-tuner DVR is little more then a smarter VCR

I don't think that's necessarily true any more. They have name-based recording now, with the normal things that go with it. Worst case, I'd say it's like the Motorola DVR that you get on cable systems...

I still like Sage MUCH better. And I think that someone at Tivo is smoking crack if they think they'll get many people to subscribe to this rip-off price!!!

[Polypro]

HTPC's and Sage...how sweet it is.

P

[Ryokurin]

Ok, I did some research on it.

1. if you allready have it your price stays the same.
2. They are essentially giving you the machine for free except for the monthly fee, and if you do cancel early theres a termination fee.

I guess it would be a deal when series 3 comes out since I hear the boxes will be around 500-700 dollars but the contract will surely turn some people off. I know several people who had to drop service for a few months for various reasons (out of the country, jobless, etc) that $150 fee is going to hurt.

[aperry]

So, let's see how this new "deal" compares to what is currently available at their site... Tivo has the 80-hour box available for $69.99 after rebate if you prepay a year's service.

80 hr Tivo and 1 year of service - $69.99 + 12 x $12.95 = $225.39
80 hr Tivo and 2 years of service - $69.99 + 24 x $12.95 = $380.79
80 hr Tivo and 3 years of service - $69.99 + 36 x $12.95 = $536.19
80 hr Tivo and LIFETIME service - $69.99 + $299.95 = $369.94

So, under the new pricing, you save about $1 on the 1 year option, $11 on the 2 year option, and $67 on the 3 year option. Though, if you were under the current plan, and think you'll have it for at least 2 years, you should definitely do the lifetime plan.

Does anyone know what happens once your commitment term is up? Do you still pay whatever price you were paying, or do you go back to $12.95?

Long story short, if a person were thinking that Tivo is something for them, they better DO IT NOW before the change.

By the way, the current offers also have an early termination fee, but it is only one year.

[Fluffdaddy]

Originally Posted by Ryokurin

I guess it would be a deal when series 3 comes out since I hear the boxes will be around 500-700 dollars but the contract will surely turn some people off. I know several people who had to drop service for a few months for various reasons (out of the country, jobless, etc) that $150 fee is going to hurt.

As of yet Tivo will not say if the new HD series 3 will be under on the same place plan. Just my guess, but I don't think Tivo will eat 500-700 dollars and give away the S3 for just a service contract

[sleonard]

Or the Series 3 contract will be more expensive to make up the cost.

[mike_15]

Tivo is just way too expensive! And I could not consider being that technologicaly tied down. I thought that the $12 was too high per unit. They finally brought the price down to $5 for secondary units. this didn't mention anything about the second and third units price.

About the only benifit of TIVO series 2 over cable is you can network shows between your other boxes.
Though cable has the On Demand shows.

If it weren't for HTPC I wouldn't consider TIVO, I would probably just go with the cable dvr, and be unhappy about it.

[Fluffdaddy]

Originally Posted by mike_15

If it weren't for HTPC I wouldn't consider TIVO, I would probably just go with the cable dvr, and be unhappy about it.

I had them all over the past 3 years. My Ratings of them are

1)Sagetv ====>Because it's very flexable and cheap onetime price
2) Replaytv===>PVR wise, very close 2nd
3) UTV =====I really liked its PiP
4)Tivo
5)Cable DVR. Comcast====> only used for HD recording. Sent it packing and it's $10 a month after Sage started to support OTA HD
6) Dishnet. Last because the old model I had was little more then a vcr. Poster here said they are better now

[lennyt]

If you are using SageTV or Sagetv Recorder and have a decent size HD, and a tuner card (better 2 if you can afford 2) with a hardware decoder, why would you need to pay Tivo. With the above you can setup 2 weeks in advance and burn 2 or 3 1Hr shows to a DVD-RW for viewing on TV. I have been recording with Sage Recorder using the "Great" mode and burning with DVD Movie Factory I can make a 2 1hr show DVD-RW in about 20 minutes. The quality is excellent.

[aperry]

Or, you could just connect your Sage computer (or a media extender) to your TV and not have to burn the stuff off to DVD at all.

[phenixdragon]

Originally Posted by dbfresh23

I think that Tivo is basically making the mistake of overestimating their name recognition. Two thirds of all of Tivos customers currently pay $5 a month for Tivo service - $1 of which actually goes to Tivo ($4 to DirecTV), how in the world do they plan on expanding by actually increasing their rates? Sure they may be giving the hardware away now, but Tivos aren't all that expensive at this point anyway.

I don't know if it's true, but I read somewhere that after Tivo's contract with DirecTV expires in 2007, DirecTV no longer has to pay Tivo anything, yet Tivo is still obligated to provide the service for existing DirecTV customers.

I guess the question is really coming to - Who is eventually going to buy Tivo? My money is on Apple.

Not sure about the whole 2007 thing but 2004 (or was it 2005?) DirecTV anounced they were dumping TiVo and using their own software. What they plan was (at the time) is that one of the other companies in the UK own by News Corp was working on a media center. This media center would site somewhere and use most of the exsisting DirecTV boxes to connect with it. I beleive it would have had at least 4 inputs to the media center and then your normal DirecTV box would connect to that box. The boxes that were compatible were after a certian generation. I can't remember all the details as it was awhile back BUT we never saw it. It was supposed to come out int he fall of 2004 or 2005. I think it was 2004. DirecTV said this at CES when they also announced having like 6 channels showing on 1 channel. Like 6 sports channels, or news, etc...