Lifetime subscriptions - Tivo Earnings

[ah30k]

Since I was bored, I took a look at theTivo financial reports to check out the company's revenue recognition policy for lifetime subscribers. I was trying to predict the financial performance for the upcoming quarter.

It turns out that Tivo recognizes lifetime subscription revenues over a four year period (their estimate of useful life of a box) which yields them $6.25 per month of revenue over four years. Granted, they get a short term boost in cash, but the strange thing about our market is that no one really gives a hoot about cash (at lease until repo man starts calling).

Looking at it this way, no wonder the company wants to drive a stake through the heart of the lifetime subscription!

Anyway, here's my prediction:
- A run on lifetimes by a few forum geeks (me included) gives a temp bump to S2 lifetime subs. But, as noted above the company only recognizes a small portion of the revenue.

- This small bump is offset by the insane delay in getting a dual tuner model or HD version out.

Bottom Line - no impact what-so-ever!

Anyway, like I said early, I was just bored. In fact, after typing this I think I should just delete it. Nah, what the heck, posting is cheap.

[Adam1115]

Since I was bored, I took a look at theTivo financial reports to check out the company's revenue recognition policy for lifetime subscribers. I was trying to predict the financial performance for the upcoming quarter.

It turns out that Tivo recognizes lifetime subscription revenues over a four year period (their estimate of useful life of a box) which yields them $6.25 per month of revenue over four years. Granted, they get a short term boost in cash, but the strange thing about our market is that no one really gives a hoot about cash (at lease until repo man starts calling).

Looking at it this way, no wonder the company wants to drive a stake through the heart of the lifetime subscription!

Anyway, here's my prediction:
- A run on lifetimes by a few forum geeks (me included) gives a temp bump to S2 lifetime subs. But, as noted above the company only recognizes a small portion of the revenue.

- This small bump is offset by the insane delay in getting a dual tuner model or HD version out.

Bottom Line - no impact what-so-ever!

Anyway, like I said early, I was just bored. In fact, after typing this I think I should just delete it. Nah, what the heck, posting is cheap.

Fine, but I still don't understand why they just didn't raise the price.

Make it $599 instead, who cares if very few people bought it. Some people still would because they have the convience of not having to ever pay a monthly fee. Others wouldn't... So what?

[beejay]

Fine, but I still don't understand why they just didn't raise the price.

Make it $599 instead, who cares if very few people bought it. Some people still would because they have the convience of not having to ever pay a monthly fee. Others wouldn't... So what?

I think it's because the price for lifetime would be so high that it would cause a bad impression. We don't know $599 is "right". What if it were $999? How many people would have that number in their minds when evaluating whether to get a TiVo even though the monthly fee was what it is currently?

- A happy owner of 3 lifetimes.