TIVO Business Analysis
TiVo COMPANY BACKGROUND
TiVo is a small black box which contains a digital video recorder that allows viewers to watch what they want, when they want to watch it, it allows Pause and instant replay of live TV by storing information on a hard drive.
The TiVo Service represents what has been called the “Personal Television Industry” – Total control over the way you watch television.
The company established manufacturing partnerships with well established firms like Philips and Sony, and also made some agreements concerning distribution through retail chains such as Best Buy, Circuit City and Sears.
In sum, the product was designed and developed by Tivo, and then licensed for manufacture and sold in retail channels as a consumer electronic device.
Price range is between $499 and $999, plus and additional $9.95 monthly for the TiVo servive (with the option to pay $99 yearly or $199 for the lifetime of the service).
Sales, expressed in terms of the number of subscribers, have been growing consistently over the 14 months of the conpany´s lifetime, yet, they have grown at a much slower rate than the one that was anticipated in face of the dimension of the market and of consumer satisfaction.
It is no wonder that the company has been carrying losses through its short existence, yet, it is disturbing to find that there is no evidence of the sales “take-off” that has been expected to happen, especially on the Christmas shopping season.
*Brand Design and Packaging: All of XM’s hardware is manufactured by third parties such as Terk, Delphi, and Pioneer Electronics. However all product packaging bears both the logo and XM’s full channel listing. This provides consumers with the opportunity to see how diverse and expansive their channels are.
Excellent growth up until the most recent year. Sales dropped from 1984 to1985. A new product introduced in 1986 is forecasted to boost sales.
TiVo was incorporated in 1997 they intended to create an interactive television system that developed the idea of recording digital video on a hard disk. TiVo allowed consumers to watch their T.V shows when they wanted to watch them by recording, playing back, and pausing live television. TiVo has now bundled its services with many companies, but at one point Direct T.V accounted for 70% of TiVo's costumers. Effective marketing and innovation have made TiVo the best known DVR in the industry. TiVo has always considered itself as a hardware provider and a service provider and now seem to be shifting to an all service future. Despite having the strongest brand name and one of the largest customer bases TiVo has suffered millions in operating losses. In 2003 a massive transaction from analog to digital DVR's took place. TiVo has been quick to respond to changes in the market by upgrading the features and refining performance. But, the new digital technology has caused TiVo's market share to drop as competition grows quickly.
Determining the right target segment requires an analysis of the customer, company and competition (fig. 2). TiVo's customer is defined by unmet needs in the market. While TV is one of the most ensconced and ritualistic elements of contemporary American life, there are still aspects of television viewing that do not fulfill customer needs. An estimated 68% of Americans complained that they felt "widowed" by their loved one during the Fall television season because their spouses were chained to their televisions during primetime from 8pm to 11pm. Additionally, parents expressed a difficult time getting their children to do homework during key television programming times. In general, this is evidence that consumers want greater control over their television consumption habits. Analysis of the TiVo Corporation reveals their core competencies, which include proprietary software, national distribution through established retail outlets such as Best Buy, Circuit City and Sears and product co-branding with trusted electronics giants Philips and Sony.
TiVo has had competitors for the first year that it was conceived which has made it difficult to thrive when fighting for market share. The two major competitors were DVR, and ReplayTV. All made their debut in 1999 and the Consumer Electronics Show in Las Vegas. Replay won the Best of Show award. (Pearce & Robinson, 2013) However years later no one remembers ReplayTV. Whereas TiVo and DVR has gone on to become household names in the market place. However in the early years of this technology TiVo thrive. Using clever marketing slogans such as, “It’s not TiVo unless it’s a TiVo”, “Simple enough you mother could do it, or “Hey if you like us, TiVo us.” Additionally, TiVo engaged in employing celebrities to endorse the TiVo brand. These are all time tested marketing strategies that work to help corporations dominate a market share and drive them to financial success. So why has TiVo dominated the market early but never turned a profit.
? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead market share of online DVD rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has fewer problems in predicting revenues.
We are using October 2006 as the base for our forecasted sales due to the many changes that have occurred in the last year. Several product lines have been ...
In addition, the letter addressed how the 2013 economic downward spiral in the United States caused consumers to purchase discounted products from Family Dollar. The CEO pointed out that this economic uncertainty resulted in an increase of “net sales by 11.4% for 2013 in comparison to the previous fiscal year and recorded operating profit of $688 million, a 3.6% increase (www.sec.gov) ”. Also, this letter explained that “830 Family Dollar stores were selected to be either renovated, relocated, or expanded (www.sec.gov)” so that the organization can continue to be competitive. Its focus is to provide a better shopping experience that appeal to a broader customer base. In hopes that this re-branding...
The team is currently working on their marketing strategies to better suit their market and increase sales growth. As per Forbes.com “Best Buy is focusing on evolving its marketing strategy to more targeted, personalized and relevant customer communication, including the continuing to shift away from traditional TV advertising to more relevant digital marketing.” Best buy is also working on ways to strengthen its relationship with its customers and target their customers directly with special offers and its programs. Experts at Forbes.com share
By 2002-03, Indian market has grown highly competitive. Due to fall in ARPU (average monthly revenue per customer unit), players fought to capture new subscribers. With industry consolidation, the focus is switching from having a national footprint to the ability to provide value-added services. Opera...
Customers use their own TV set as a monitor and store programs on audio cassette recorders. Compare this price with computers today. The price about the same, but the computer has changed tremendously.
Adams, Guy. “Is your TV spying on YOU? It sounds like science fiction but many new TVs can watch you- telling advertisers your favorite shows or even filming you on the sofa. And there’s no off switch!” Mail Online. (25 Nov 2013). Web.30 Mar .2014.
· Unique Products- there is nothing that functions quite like GoPro in the media world
Size of current customer base and market share is small (potential growth and new advertising agreements)
teleconferencing, even the complex simulations of virtual reality. This souped-up television will itself be a powerful computer. This, many believe, will be the world’s biggest media group, letting consumers tune into anything, anywhere, anytime.