Online Home Video Delivery – Who Will Win? Part 5 – TiVo

By David Walker | January 31st, 2008 (0) Comments

No matter what technologies come along, our fascination with television shows and movies is virtually endless. Whether it’s the acting, stories or visual eye candy that grabs us, there’s no denying that we’re as fascinated with video as we’ve ever been. As we enter 2008, the ability to get to that video is becomingly increasingly easier. Several key players are entering the online video delivery marketplace and though choice is growing, it’s going to be important that consumers pick the provider that suits them best and that has the best long-term potential to get them the content they crave. Over the next few days, we’ll be taking a look at the major players, what their capabilities are and ultimately, who we think has the best shot of winning in this space. Today, we take a look at TiVo.

What They Have
TiVo is, if nothing else, a survivor. After years of struggling, the “little box that could” seems to be in better health after striking a deal with Comcast and releasing it’s impressive Series 3 lineup. Beginning with the Series 2 line, each TiVo box came with the ability to go online either through a USB network adapter or through an integrated network port. This modification to their hardware lineup is important because it emphasizes their goal of making the TiVo box more than just a simple PVR. In fact, TiVo has recently announced innovations that will make getting internet video onto the TiVo a seamless experience. What about mainstream movies and rentals? Well, TiVo has a partner in Amazon and their Unbox service. By going to Unbox, you can purchase or rent movies and tv shows online and have them automatically download to your TiVo. Once they’re ready to view, the video appears in your “Now Playing” area.

Advantages
TiVo already has a user-base who are used to their interface. The fact that you can now get movies and tv shows from Unbox into that familiar interface is huge. In many ways, the TiVo box has become a potential media hub rather than just a time-shifting PVR appliance. When you consider that the Series 3 TiVo boxes are also HD capable and can support up to 2 CableCARDs while also supporting HD audio, it looks like TiVo has a box that compares favorably against any existing competitor.

Disadvantages
TiVo’s biggest disadvantage is it’s history. People know TiVo as the company that started the PVR revolution. The company’s name is so synonymous with time-shifting, that you’ll hear people refer to recording television as “tivo-ing” a show. That perception may very well be the thing that keeps people taking TiVo seriously in this space, even though it may have the best physical setup to compete. Also, by being dependent on Amazon, TiVo doesn’t have direct control over the content they offer, which means maintaining a strong relationship with Amazon going forward.

Additionally, while the rental fees on Unbox are in-line with everyone else, TiVo’s own subscription fee ensures that the only people who will be using TiVo for getting online video are people who are already using TiVo to begin with.

Outlook
For a company that was previously considered to be knocking on death’s door, TiVo has done remarkably well in surviving. It’s intuitive and familiar interface and seamless integration with Amazon Unbox makes it a compelling solution for getting online video into the home. Whether they can get the market penetration needed to become a legitimate force is the biggest obstacle, especially considering that their bread is buttered through their subscription model.

Previous Articles:
Part 1: Apple
Part 2: Microsoft
Part 3: Sony
Part 4: Netflix

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