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Old 02-18-2014, 05:59 AM   #61
tivohaydon
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Quote:
Originally Posted by MScottC View Post
The benefit of the ads is quite simple, it subsidizes the cost of the the device and the service to keep the device working.
But if you look at their financials this is simply not true. TiVo has very likely spent more money engineering, support and sales related to supporting advertising than they receive with advertising(*). At most it's a very small fraction of a dollar subsidy every month. TiVo is pricing themselves vs cable company boxes and has nothing to do with advertising revenue.

The most interesting possibility someone else mentioned is that they feel it gives them 'cover' ... Companies aren't as likely to out and out try and destroy their platform (with CableCard's issues that's a hard pill to swallow though) because it ALSO supports advertising.

edit: (*) Made it a bit more clear that the engineering, support and sales were related to engineering costs for advertising, supporting advertising related functions and overhead associated with selling spot sales to advertisers.

Last edited by tivohaydon : 02-18-2014 at 11:35 AM.
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Old 02-18-2014, 10:19 AM   #62
atmuscarella
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Quote:
Originally Posted by tivohaydon View Post
But if you look at their financials this is simply not true. TiVo has very likely spent more money engineering, support and sales than they receive with advertising. At most it's a very small fraction of a dollar subsidy every month. TiVo is pricing themselves vs cable company boxes and has nothing to do with advertising revenue.

The most interesting possibility someone else mentioned is that they feel it gives them 'cover' ... Companies aren't as likely to out and out try and destroy their platform (with CableCard's issues that's a hard pill to swallow though) because it ALSO supports advertising.
It is questionable if TiVo has ever made any money selling stand alone DVRs either. However I am sure their intent is to make money selling stand alone DVRs and part of that strategy is ad revenue.
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Old 02-19-2014, 01:16 PM   #63
Nailz
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If the advertisements save me money, then show me the math!
I pay for the electricity, cable bill, hardware & service.

Put me on the "Do not send advertisements list"

If I want your product, I'll find you. It's not that I think that advertisements are truthful, so I don't trust them anyway.
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