TiVo

Company Info

• Introduced in 1999 was premier leader of DVRo Trails in 1998 in San Franciscoo Fast Forward Bleep, “Season Pass” & “Wish List”o DirectTV first partner – DirectTiVO

• Software, hardware, & serviceso Live TV, internet video, VOD

• Industry first – Multi-Room Viewing, PC hook up, third party apps integration

Company Info

• UK in 2000 – 2003 BSB, 2010 with Virgin Media• Australia in 2008 with Hybrid Television Services• Partnerships – Charter, Comcast, Cox, DirecTV,….

(Virgin Media, Cablevision)• Revenue – Consumer Service, TV Service

Providers, Media Services• Market share – 4.6 (2006) to 2.3 million(2010)

Current STB Products

Software & Services

Interview Matthew Zinn (CPO)

• Vision – One box or UI used by you to watch what you want. (only substitute box)

• Internet based marketing due to low retail sales• Focus - Operating License for Hybrid TV solution• High investment

o Litigation for Shareholder valueo R&D for partnerships

• Partnership picking importance – Comcast “disaster” due to 800+ VPs

• Innovations based on consumers with Open Source• No SWOT – Opportunity Driven Analysis• Deals hard to come by and take time

Team 2

• Tim Bodden• Elaine Christ• G.K. Katari

• Peter Molina• Nina Zippay

Introduction

• Where are they now?o Premium service & product (2010)o Partnerships & Lawsuitso Incremental Innovationo Core Competencieso Short/Long Term

• Where should they be headed?o U.S. market focus (Global?)o R&D Importance

SWOT

• Partnerships – opportunity or threat?

Strength

• Cash & Debt Ratio• Software Service & Brand

Weakness

• Product line-up• Hardware (STB)

Opportunity

• Software Licensing• Foreign Markets

Threat

• Patent Lawsuits• Costs

TiVo – Key Strategic Issue

1. Expand into internet-based content devices by acquiring Roku.

2. International expansion of current product line.

Alternative Options

• How to maintain market share in an industry that has become increasingly commoditized.

TiVo – Chosen Alternative

• Exit Manufacturing of DVR Set-Top Boxes and Create License Agreements with Set-Top Box Manufacturers

o Focus on core competency of creating intuitive user-interfaces.

o Expand potential customer base to all cable & satellite customers.

o Allows partners to eliminate their R&D and software programming departments.

Strategic Component Recommended Changes

Vision, Mission, Goals •Current Vision - Provide innovative solutions both Hardware and Software for Advanced Television •Due to higher competition in Hardware, Hardware solutions should be removed from Vision and stick to Software Solutions• Mission should reflect Vision • Goals remain the same

Corporate Governance • Currently, the board has Six members, mostly from Entertainment Industry• The board should be increased to Nine• Board needs to meet regularly and focus on Operation issues• Board should frequently visit Emerging Countries to get Customer tastes

People and Skills • Recruit more Software Engineers• Improve Training facilities• Allow more Internal transfers

Strategic Component Recommended Changes

Organizational Structure •New VP & department for Software QA •Strategic Software teams•Strategic Licensing teams (internal and external members)

Culture - Team Culture and Learning Organization Culture

•Minimal or elimination of hierarchy and titles within teams•Autonomy to collaborate externally via blogs, open source communities•Attendance at TiVo conferences hosted by core customer base

Reward Systems •10-15% of time to work on personal projects•Stock options for all levels of employees•Performance plans focused on long term goals •No penalization for failed projects

Changes to systems/processes, including Information Technology

•Open source collaboration system•Blogs and internet marketing tools

TiVo Balanced ScorecardFinancial Perspective

To achieve our goals, how should we appear to ourshareholders?

Strategic goals

Actions Measures

Maintain Liquidity Current Ratio>1

Manage Long TermDebt

Debt:Equity <70%

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Customer PerspectiveTo achieve our vision, how should we appear to our

customers?

Strategic goals

Actions Measures

Maintain TiVobrand image

Customer Surveyresult 4/5

Integrate TiVosoftware

Beginnegotiations with3 new partners

by Q4 2011

Learning & Growth PerspectiveTo achieve our vision, how will we sustain our ability to change and

improve?

Strategic goalsActions Measures

Focus on Corecompetency

Hire 100 newsoftware engineers

Diversify BODAppoint 3 new

members by Q3 2011

Business ProcessPerspective

To satisfy our customers and stakeholders, atwhat business processes must we excel?

Strategic goalsActions Measures

UpdateSoftwarePackage

Newdevelopmentreleased Q3

2012

Create R&Dteams

FunctionalTeam Updates

by Q3 2011

Mgt VisitEmergingMarkets

Visit 3 newmarkets by Q4

2011

Vision

To be theLeading

Provider ofSoftware forVisual Media

Conclusion

• External Analysiso Demographics, Competitive Forces

• Internal Analysiso Financial, Core competency

• Strategy Formulationo Acquisition, Global Expansion or Partnerships

• Strategy Implementationo Vision, Culture, Teamwork