Post on 24-Jan-2015
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transcript
TiVo
By: Nick Scofield, Mike Pitterle, & Brian Kudelas
What we will be covering…
Quick overview of the case Potential problems and competitive
forces facing TiVo Alternative courses of action Best plan of action for success
Synopsis
Average household has 2.4 TV’s Average of 7.4 hours a day watching
TV Popular shows between 8 and 11 pm
have audiences larger than 25 million Founders started by focusing on the TV
vs. “home networking” idea Need to change customers rituals on a
mass scale
What TiVo Does
Takes feed and turns it into digital video Enables pause/fast forward/record Partnered with Sony and Philips
› They manufacture, distribute, and promote TiVo
TiVo focuses on web and PR aspects Box pricing: $499 and $999 Subscription: $9.95/mo, $99/yr, or
$199/life
Problems facing TiVo
Hard for nonusers to understand premise
Difficult to market to in-store customers
Networks and advertisers fear that customers will skip commercials
Competition Replay TV: Quick skip, no service fee, $ Microsoft Ultimate TV: More technologically
advanced
Possible Alternatives
Create better brand awareness › Partnership with Sony and Philips isn’t
really helping with awareness› Difficult to show features in stores; many
customers need a demonstration › Show pause/record/skip/FF/REW features› Prediction system, favorites, suggestions,
no tapes› Illustrate the fact that it is TV on the
customer’s terms, not the network’s
Alternatives Continued
TiVo could focus on everyday consumers and lower the cost› Currently problematic, because at $999, its
more expensive than many TV’s› Would attract the mass market, not just
“early adopters” and “trend-setters”› Could give a “free” TiVo with a subscription
contract
Alternatives Continued
Partner with internet or dish providers› Emphasis on personal television › Allows networks and advertisers to gain
back some control (short ads, etc.)› Most likely would be lower cost to
consumers› Could hurt TiVo’s margins› Competition from Microsoft
Recommendations
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 › Price unit around $200 to $400› Keep subscription costs› Currently 102 million TV-Watchers and only
have 42,000 subscribers since intro
Recommendations
Emphasize the fact the TiVo box has the ability to pause a show at any time necessary and record: never miss a show
More in-depth Point-of-Sale demos in retail stores
Partner with service providers (Comcast, Direct TV, AT&T etc.) to boost sales, market share and exposure to mass market
Questions or Comments