TiVo

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=History of TiVo=

TiVo Inc is a publicly-traded Alvisa, California based company that manufactures and markets a home entertainment technology package consisting of the TiVo brand digital video recorder (DVR) and ongoing subscription services that lets television viewers manage the timing of broadcast television programs to suit their personal preferences and viewing availability.

[|TiVo], is an example of egocasting because it gives consumers what they want "on demand," which thus confirm narrow personal preferences. TiVo contributes to a world where "individual's control over the content, style, and timing of what he consumes is nearly absolute" (Rosen). TiVo was founded in 1997 by Teleworld Inc which was later renamed as TiVo Inc. The product was launched in March of 1999 and was accompanied by a television ad campaign aimed at early adopters who were challenged and offered the opportunity to “program their personal network” to view what they want, when they want. TiVo Inc consisted of veterans of Silicon Graphics and Time Warner’s Full Service Network digital video system (Wikipedia). The current President and CEO is Thomas Rogers and the chairman is former CEO Michael Ramsay.

The TiVo equipment and software offers advanced features and functionality that distinguishes the TiVo technology from the recording and playback capabilities of the well-entrenched video cassette recorder (VCR). It is an example of [|digital video recorders] (DRV) that allows users to watch TV, record favourite television programs, and view the programs at a more convenient time. Not only does TiVo record requested programs, but TiVo records content the users like to watch while they’re "out living life” (TiVo). The product’s philosophy is that “everyone, no matter how busy, deserves to enjoy the home entertainment of their choosing, at their convenience” (Rosen). Programs are recorded on an internal disk storage. In addition, TiVo allows users to pause for up to 30 minutes, rewind back to missed parts, and view live television in slow-motion. Click [|here] for a demonstration.

=Weaknesses=

TiVo services are available in the United States, United Kingdom and Canada. However, TiVo is struggling to overcome many weaknesses. The company continues to struggle increasing it’s relatively small market share. This can be attributed to several factors. First, TiVo has had “difficulty penetrating consumer markets” (Wikipedia). One reason for this is “consumers are unfamiliar with the benefits of [TiVo]” and therefore many consumers lean towards “less expensive, more familiar systems like traditional VCRs” (Wikipedia). VCR manufacturers are direct competitors with the low technology but well-understood VCR technology. A second factor that is hindering the adoption of TiVo into the mainstream is the cost. Pricing of TiVo units are well above VCR pricing, and TiVo’s product strategy implies a significant premium for its differentiated services. TiVo has however created a loyal consumer base for those early adopters. Other weaknesses plaguing TiVo is that the company is suffering from an inconsistent and inadequate market message over which it has negligible control. TiVo is alienating broadcast television advertisers by allowing consumers to skip commercials. Furthermore, the product requires a highly technical sales pitch but retailing staff often lack qualifications.

=Strengths=

General consumer awareness that TiVo offers superior technology to the VCR gives it a tremendous replacement opportunity. Furthermore, the opportunity to decrease costs and effort of consumer acquisition as more customers are required through word-of-mouth proves to be a great opportunity for TiVo. Furthermore, Microsoft has announced it will sell its own DVR device as an add-on to its one-million subscriber WebTV product, a product which appears to be more technically advanced. Microsoft will likely compete on price since its product will be an incremental volume opportunity.

=Works Cited=

Rosen, Christine. "The Age of Egocasting." //The New Atlantis// (2005): 51. 23 Feb. 2006.

"TiVo." //Wikipedia//. 23 Feb. 2006 .

"What is TiVo?" //TiVo//. 23 Feb. 2006 .

Eti Gazette. "TiVo". [online] Accessed: Feb. 21st, 2006. Online at: http://www.etigazette.com/Top-News-Searches-2005-Tip-to-Tor/tivo.php

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__//TiVo//__. 23 Feb. 2006 .