Will TiVo Lose Even More Subscribers?

By Phillip Swann
TVPredictions.com

http://www.tvpredictions.com/tivosubs052610.htm


Washington, D.C. (May 26, 2010) -- TiVo reported yesterday that it had 
2.5 million subscribers at the end of the first quarter, a 100,000 
decrease from the end of the fourth quarter of 2009.

While the decline is the lowest quarterly drop in roughly three years, 
it suggests that the DVR company seems incapable of maintaining its 
subscriber base.

TiVo reported having 4.3 million subscribers in 2006, but the sub 
numbers have been dropping steadily ever since due to increased 
competition from satellite and cable DVR services.

The company has attempted to revitalize its subscription effort by 
signing licensing deals with DIRECTV, Comcast and Cox. However, the 
rollout of those services have been delayed by various issues, including 
software glitches.

TiVo has also been hampered by delays in its DVR patent infringement 
lawsuit against satcaster Dish Network. While lower courts have sided 
with TiVo, an appeals court ruled recently that Dish can resubmit its 
claim that its new DVR software does not violate TiVo's patents.

If TiVo loses the Dish Network lawsuit, it could make it even more 
difficult for the company to generate new subscribers. Minus a potent 
legal threat, cable, telco and satellite operators may feel it's 
unnecessary to sign licensing deals with TiVo, or execute them with 
enthusiasm.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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