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No upgrade incentive from TiVo!

Discussion in 'TiVo Roamio DVRs' started by bklinc, Aug 23, 2013.

  1. bklinc

    bklinc New Member

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    Aug 21, 2013
    PA, TX
    TiVo is obviously not too anxious to encourage existing TiVo owners to “upgrade” to a Roamio! I attempted to do so today, but they won’t “cancel” my old service contract (goes to 2/2014) and start a new service contract on the Roamio. I either have to pay off the old service contract or pay the early termination fee. I don’t need the extra DVR and I don’t have a relative or friend who wants to take on the contractual obligation, even if I give them my Premier box. I believe this will result in a loss of revenue for TiVo in the long run as I suspect 6 months from now, they will reduce the price of the Roamio, or something better might come along from another company. It’s my understanding that TiVo is already in some financial stress; they could help alleviate it by providing some financial encouragement to existing TiVo owners to upgrade without actually reducing the price of the new product. They may lose some owner loyalty to this practice!:(
     
  2. TZeruk

    TZeruk New Member

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    Jun 3, 2011
    Ugh really? I just had to re-up my 1-year service for my premiere (I have MSD on it from an old tivo and paying a year at a time saves money as well). I was hoping I could call them up and tell them I'd like to order a Roamio and transfer service, but seems like they aren't budging?
     
  3. ppartekim

    ppartekim New Member

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    Jan 17, 2007
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    I would still give it a shot... especially if you did it within a 30dya period. All they can say is no.. but if pressed enough.. who knows... squeaky wheel and all that....
     
  4. CrispyCritter

    CrispyCritter Purple Ribbon Wearer

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    Feb 28, 2001
    North...
    Why? TiVO heavily subsidizes most of their hardware prices - not as much as the phone companies do, but the same principle. The subsidy and then eventual profit they get comes out of the service contracts, not any hardware. If they allow service contracts to not be finished, then they may actually lose money on that customer. Are you upset at wireless companies for insisting on fulfillment of your phone contracts?

    (TiVo is in no financial stress at all. They've got half a billion dollars in the bank due to the patent court settlements (that's what's paying for the R&D for the Roamios and Minis.))
     
  5. bklinc

    bklinc New Member

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    Aug 21, 2013
    PA, TX
    I don’t like cellular phone company contracts either, but it is possible to get out of them. I won’t describe the process here, but there is legal precedent which can be invoked if necessary. They usually won’t allow it to reach court level as it will cost them more to defend than to eat the cost of the unexpired contract. I don’t condone asking for early termination of cell phone contracts unless there is a legitimate reason (moved, poor service, poor equipment, etc.).
    I was actually offering to give TiVo additional business as I now might not renew my service with them. Otherwise, like the cell phone companies who renew your contract when you ask to upgrade your cell phone before your contract expires, they actually are guaranteed another two years of contractual obligation from the time of the upgrade. TiVo could have done this for me, guaranteeing them at least an additional 6 months of contractual obligation from me, which they will now lose. I can guarantee you they make something on the sale of the box!
     
  6. sbiller

    sbiller Active Member

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    Tampa, FL
    TiVo will have a little over $1 billion of cash on-hand when they report earnings next Tuesday due to the $490 million one-time payment associated with the Cisco/Google/Arris/TWC settlement.
     
  7. jrtroo

    jrtroo User

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    Feb 4, 2008
    I think there is little *financial* incentive because there is a lot of excitement of the new *features* as an incentive. Way more hype and love for tivo here than when the premiere came out.
     
  8. CrispyCritter

    CrispyCritter Purple Ribbon Wearer

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    Feb 28, 2001
    North...
    TiVo has always lost money on hardware (except for their top-end models). Every single year, their financial statements show a significantly higher cost of producing hardware than revenue from producing hardware. They have no reason to lie about it; they say they make it up with their service income. It's part of their standard discussions with analysts in most quarterly reports. They are a very low volume hardware producer with absolutely no in-house manufacturing capability at all. Actual hardware production is entirely contracted out.

    They have never wanted to build hardware, but the standalone DVR market turned out to be so small that the big players (Sony, Toshiba, Philips, Humax, AT&T) all abandoned them and TiVo had to arrange their own manufacturing chain.

    So you don't condone asking for early termination of cell phone contracts, but you think it's perfectly fine to ask it of TiVo?
     
  9. jcaudle

    jcaudle Member

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    Aug 16, 2004
    Fairfax, Va
    I have no idea how tivo works early termination. But with cell phone companies don't you just cancel and pay the early termination fee?
     
  10. bklinc

    bklinc New Member

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    Aug 21, 2013
    PA, TX
    Not always. You can get out of a cell phone contract for reasons of poor service, poor equipment, etc., as I stated before, without paying the early termination fee. I have done it.
    Also, as I stated before, I have "gotten out" of cell phone contracts when I upgraded my equipment before the contract ended. They just start the clock over with the new equipment, guaranteeing them another two years of contractual service.
     
  11. bklinc

    bklinc New Member

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    Aug 21, 2013
    PA, TX
    So you don't condone asking for early termination of cell phone contracts, but you think it's perfectly fine to ask it of TiVo?[/QUOTE]

    I didn't ask them to terminate my service contract early. I asked them to transfer it to new equipment and start the clock over, just as I have done many times with cellular telephones, guaranteeing them another six months of contractual service.

    I stand by my original post, which was only to alert TiVo users that the company will not allow you to transfer your service contract to a new piece of equipment which they are trying to promote.
     
  12. bklinc

    bklinc New Member

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    Aug 21, 2013
    PA, TX
    I am glad that TiVo is so cash rich since I now am committed to another six months of service from them. I also applaud them for defending their patents. As I recall, patents are granted for 17 years. I wonder how far they are into their patent grants? If the future of their business is dependent on suing other companies for violating their patents, I'm glad I have only another six months obligation with them!
     
  13. jrtroo

    jrtroo User

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    Feb 4, 2008
    Ask all you want. Tivo's message really is that it takes a one year agreement to make back the loss on the fixed costs of the box, perhaps with a little return mixed in.
     
  14. jrtroo

    jrtroo User

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    Feb 4, 2008
    The suits are pretty much done, and Tivo has to live by their own merits (and deserved cash reserves) now.
     
  15. innocentfreak

    innocentfreak Active Member

    8,950
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    Aug 25, 2001
    Florida
  16. bklinc

    bklinc New Member

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    Aug 21, 2013
    PA, TX
    Thanks for the tip. Not sure what "buy one locally" means. I'm also not sure what qualifies me for a "swap". Any recommendations?

    Sorry for the reply above. After checking your link, it appears that my "contract" is not transferrable. Fortunately, I learned that before I ordered a Roamio anyway after speaking with a TiVo representative. They could have gotten another six months out of me beyond my original contract if they had allowed the transfer.
     
  17. innocentfreak

    innocentfreak Active Member

    8,950
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    Aug 25, 2001
    Florida
    By buy one locally I mean from Best Buy, Amazon, etc. Any retailer other than TiVo since you can buy a box without a plan.

    I am guessing you have a $12.95 sub which is why. It doesn't cover the hardware subsidy.
     
  18. MeInDallas

    MeInDallas Member

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    Jul 31, 2011
    Dallas, Texas
    I agree, I've never seen people so excited about a launch that I can remember, well at least in a long long time.
     
  19. CrispyCritter

    CrispyCritter Purple Ribbon Wearer

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    Feb 28, 2001
    North...
    True, as long as you are willing to pay the full price (say $700) of the new equipment instead of the upgrade after 2 years price (say $200). TiVo doesn't publish a "full price", one that gives them a sufficient profit to support the rest of the company's activities. But as far as I can tell, you want to get away with paying the subsidized price - the one that corresponds to the "upgrade" price.

    TiVo has to be able to make money somewhere. Hardware plus service fees have basically never allowed TiVo to make a profit in its 14 year history (there were 1-2 quarters where if you folded in money for development paid for by outside companies, they eked out a few hundred thousand dollars profit). They have demonstrated they can break-even and survive, but the only quarters in which they've made profits so far have been because of the patent settlements.
     
  20. WhiskeyTango

    WhiskeyTango New Member

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    Sep 20, 2006
    New Jersey
    Six months of service isn't enough to cover the subsidy on the box. They'd be losing money if they did what you wanted.
     

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