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TiVo,[object Object],By: Nick  Scofield, Mike Pitterle, ,[object Object],& Brian Kudelas,[object Object]
What we will be covering…,[object Object],Quick overview of the case,[object Object],Potential problems and competitive forces facing TiVo,[object Object],Alternative courses of action,[object Object],Best plan of action for success ,[object Object]
Synopsis ,[object Object],Average household has 2.4 TV’s,[object Object],Average of 7.4 hours a day watching TV,[object Object],Popular shows between 8 and 11 pm have audiences larger than 25 million,[object Object],Founders started by focusing on the TV vs. “home networking” idea,[object Object],Need to change customers rituals on a mass scale,[object Object]
What TiVo Does,[object Object],Takes feed and turns it into digital video,[object Object],Enables pause/fast forward/record ,[object Object],Partnered with Sony and Philips ,[object Object],They manufacture, distribute, and     promote TiVo,[object Object],TiVo focuses on web and PR aspects,[object Object],Box pricing:  $499 and $999,[object Object],Subscription:  $9.95/mo, $99/yr, or $199/life,[object Object]
Problems facing TiVo,[object Object],Hard for nonusers to understand premise,[object Object],Difficult to market to in-store customers,[object Object],Networks and advertisers fear that customers will skip commercials,[object Object],Competition ,[object Object],Replay TV:  Quick skip, no service fee, $,[object Object],Microsoft Ultimate TV:  More technologically advanced ,[object Object]
Possible Alternatives ,[object Object],Create better brand awareness ,[object Object],Partnership with Sony and Philips isn’t really helping with awareness,[object Object],Difficult to show features in stores; many customers need a demonstration ,[object Object],Show pause/record/skip/FF/REW features,[object Object],Prediction system, favorites, suggestions, no tapes,[object Object],Illustrate the fact that it is TV on the customer’s terms, not the network’s,[object Object]
Alternatives Continued ,[object Object],TiVo could focus on everyday consumers and lower the cost,[object Object],Currently problematic, because at $999, its more expensive than many TV’s,[object Object],Would attract the mass market, not just “early adopters” and “trend-setters”,[object Object],Could give a “free” TiVo with a subscription contract,[object Object]
Alternatives Continued  ,[object Object],Partner with internet or dish providers,[object Object],Emphasis on personal television ,[object Object],Allows networks and advertisers to gain back some control (short ads, etc.),[object Object],Most likely would be lower cost to consumers,[object Object],Could hurt TiVo’s margins,[object Object],Competition from Microsoft,[object Object]
Recommendations ,[object Object],TiVo needs to focus its product more towards the everyday TV watchers and use lower pricing to attract more customers than just the high-end ,[object Object],Price unit around $200 to $400,[object Object],Keep subscription costs,[object Object],Currently 102 million TV-Watchers and only have 42,000 subscribers since intro,[object Object]
Recommendations ,[object Object],Emphasize the fact the TiVo box has the ability to pause a show at any time necessary and record: never miss a show,[object Object],More in-depth Point-of-Sale demos in retail stores,[object Object],Partner with service providers (Comcast, Direct TV, AT&T etc.) to boost sales, market share and exposure to mass market ,[object Object]
Questions or Comments,[object Object]

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