Anyone concerned about the possible negative affect of the Comcast deal on TiVo Inc?

Discussion in 'TiVo Coffee House - TiVo Discussion' started by BlackBetty, Sep 4, 2007.

  1. Sep 4, 2007 #1 of 20

    BlackBetty I

    Nov 5, 2004


    I always thought that the comcast deal of porting TiVo software was the best thing since sliced bread. Then today I started thinking......What if the comcast deal entices standalone TiVo users over to ComcasTiVo? Tivo would go from getting say $13 for that user, to getting something like $1 as a ComcasTiVo user. That means that ComcasTiVo needs to sign some 13+ users for each standalone user that switches.

    Of course there is additional revenue to be had from advertising since you have a larger sub base.

    Anyone else concerned about this?
  2. Sep 4, 2007 #2 of 20

    aztivo Member

    Feb 23, 2005
    What makes you think they will only get $1?? Do you have a copy of the agreement?
  3. Sep 4, 2007 #3 of 20

    GoHokies! O2->CO2 Converter

    Sep 21, 2005
    Regardless of how much it is, it will almost certainly be less than even the cheapest $6.95 MSD rate.
  4. Sep 4, 2007 #4 of 20

    kmill14 New Member

    Dec 11, 2006
    I can't imagine any stand alone subscriber leaving for the ComcasTivo service, unless they absolutely needed VOD and PPV (which I think Unbox takes care of).

    So all you are left with is those people who are either DTV or Dish subs, or Comcast subs that either have nothing or the Comcast DVR.

    We know that DTV Tivo users are waiting for the interface to go many I don't know, but at the very least those that switch from DTV will create at least a wash effect for Tivo's bottom line.

    Also, the main reason someone would choose the ComcasTivo over the stand alone Tivo is the up front price tag (and perhaps the VOD/PPV service).

    I imagine a # of those people will see what Tivo is all about for the first time, and eventually get the SA box for the full effect.
  5. Sep 4, 2007 #5 of 20

    MickeS Well-Known Member

    Dec 26, 2002


    No. What would concern me would be if TiVo can't get deals like this.
  6. Sep 4, 2007 #6 of 20

    Sandlapper New Member

    Oct 26, 2003
    Greenville, SC
    I would think with the Comcast deal they're not having to pay for equipment, customer service etc. so they money they make off each box is almost pure profit.
  7. Sep 4, 2007 #7 of 20

    dswallow Save the ModeratŠ¾r TCF Club

    Dec 3, 2000
    It'd certainly be better if TiVo would become the only DVR Comcast provided, but since it's planned to be some sort of extra-cost option, I suspect it'll pay TiVo more than what DirecTV was paying per subscriber. I, for one, will switch over to the Comcast TiVo software for my two Comcast DVR's and they'll supplement my existing Series 3 and TiVo HD units, so it'll be a net gain for TiVo.

    But once it becomes just a matter of opting in for a software update with the hardware already in people's homes, I think it'll be a much easier time convincing them to give it a try.
  8. Sep 4, 2007 #8 of 20

    ah30k Well-Known Member

    Jan 8, 2006
    Or people who are losing access to channels due to SDV.
  9. Sep 4, 2007 #9 of 20

    Curtis New Member

    Dec 2, 2003
    The subscriber acquisition cost (SAC) for standalone subscribers has been around $300. The SAC for Comcast TiVo subs will be near $0.
  10. JJ

    JJ TiVoPlantation Owner

    Jul 14, 2000
    Land of...
    Comcast deal
    reduces the independent t inking of TiVo, Inc. Business decisions like allowing QAM mapping of data to OTA listings must be weighed by customer satisfaction of TiVo direct customers and cable companies...
  11. classicsat

    classicsat Astute User

    Feb 18, 2004
    Ontario Canada.
    IMO, they will gain more new Com-TiVo "customers" than they will lose Standalone or DirecTV-TiVo customers to the Com-TiVo.
  12. EVizzle

    EVizzle ^^MacGvyer^^

    Feb 13, 2005
    St. Paul, MN
    I hope that Tivo uses Comcast as a way to demonstrate the quality of their service and provides a "lite" version of its capabilities, but maintains the advanced features and benefits of a standalone box. Monthly fee could be slightly lower (1-2 dollars per month) for a standalone box versus ComcasTivo with box rental and DVR service, and I think Tivo would still get the customers who want to buy, and Comcast would get a quality service and continue to battle with Satellite instead of having to worry about Tivo.

    I think that it won't be quite so smart, but you never know...
  13. mtchamp

    mtchamp New Member

    May 15, 2001
    No, not concerned. I think you missed this recent thread which posed the same question.

    Could Comcast be bad for Tivo???

    I posted my thoughts on Comcast TiVo. Here is a repost:

    I hear more often with more certainty from more people who work in some capacity for Comcast that TiVo is coming out mid September in NE and it's really cool. It will cost $2.95 extra monthly on top of Basic DVR service.

    It certainly will be good for TiVo to have the chance to get the TiVo experience into the homes of a large number of new users in a short time. The superior quality, functionality and features of TiVo are not easily communicated. You really need to use it and see for yourself what a difference it makes compared with generic DVR software that most people think is just fine.

    We'll have to first see how many customers Comcast can convince to upgrade to the Deluxe DVR Service with TiVo, but I think it will be better than 20% that some keep suggesting. I think Comcast will aggressively leverage it's more than 16 million investment in TiVo development cost for TiVo software and they will push TiVo hard and demonstrate that TiVo Deluxe DVR Service is worth $2.95 extra.

    The TiVo software on Comcast could be such a success in many ways for Comcast, that it will become the default DVR service. Comcast will first get as many customers as possible to agree to pay extra for TiVo where it can be first downloaded to Motorola boxes and then just price it all in at some point when it's available everywhere on every DVR box including Scientific Atlanta and others out there in Comcast land. Comcast just agreed to pay for TiVo software development cost for SA boxes and others in Comcast homes, so I think they are serious about an eventual TiVo mass deployment.

    Although TiVo makes much less money on a Comcast sub, they will have much lower customer acquisition and support cost resulting in nearly pure profit for each new Comcast sub. The huge upside from Comcast will be the shared revenue from TiVo's advertising solutions deployed across all of TiVo's different platforms including TiVo standalone, DirecTV, Comcast, Cox and more to come. The number of TiVo subscribers will increase quickly and advertising revenue for TiVo could be significant.

    The other upside is the TiVo HD will get a boost from the brand building that Comcast will indirectly do for TiVo. There will be a huge opportunity for TiVo to attract more profitable subs from more consumers who get their first taste of TiVo through Comcast and want more.

    Another positive of the Comcast relationship is that TiVo is free to provide ready made software solutions for Motorola DVR's in use by other MSO's that was funded by Comcast.

    This is an exciting time for TiVo growth. An injunction was placed on Echostar, now under appeal, to unplug 4 million infringing DVR's by a Federal Circuit Court Judge in Texas after being found guilty of willful patent infringement by a Federal jury. If the injunction is upheld by the Federal Court of Appeals, TiVo will get nearly 200 million.

    With a solid win in court, TiVo will get some much needed respect and TiVo will have the negotiating power it has never enjoyed. The appeals process is quickly coming to an end with oral arguments set for October 4th and a decision should then follow within a couple of months. This could be a very good Christmas for TiVo Inc and you might just see everyone lining up to pay TiVo licensing fees for the pause and rewind live TV feature covered by TiVo's "Time Warp Patent".
  14. bicker

    bicker bUU

    Nov 9, 2003
    I wonder to what extent Comcast could be moving towards interest in acquiring TiVo. And would that be considered a positive affect or a negative affect? :)
  15. control-z

    control-z New Member

    Mar 4, 2004
    I think Tivo needs to team up with cable/satellite companies or risk going out of business. So more power to them, hope it works out great.
  16. davecramer74

    davecramer74 New Member

    Mar 17, 2006
    think its the people on comcast that will say "sweet, i can have tivo and all the other benifits" and add the tivo service. Im one of the ones that wouldnt give up VOD. So im still waiting around for their software on the comcast boxes.
  17. jayfest

    jayfest Not-so-New Member

    Mar 25, 2003
    New Jersey
    So you're telling me that the availability of Unbox will replace my HBO and Showtime OnDemand, where, included with my charge for those premium channels, I can watch their series shows (like Dexter and Flight of the Conchords) anytime I want without clogging up my DVR, and I can also watch The Closer in HD (without owning a HD TiVo) anytime I want for free without having to record it? Could you please explain how this is done, because that would greatly increase my interest in the Unbox.
  18. smithken31100

    smithken31100 Member

    Mar 4, 2003
    For me it doesn't matter what Comcast does I can't get their service even if I wanted to, at least not without moving.
  19. lundberry

    lundberry TVWA member

    Sep 10, 2007
    Duluth, MN
    If you want to watch VOD or PPV just tune to the channel it would be on and then watch it. you might have to use your cable box remote to do it. But whats wrong with that. Your still getting the functionality.
  20. bicker

    bicker bUU

    Nov 9, 2003
    The problem with that is that it doesn't work that way. There is no channel for VOD or PPV to tune to, at least not in this part of the country. Here, you go into a menu and choose the program you want. That sends a signal to the head-end and a channel is dynamically allocated for the program you've selected, and a message sent back to your STB to tune to that channel. With TiVo, there is no menu of VOD or PPV selections from the cable company, no way to select such a program, no way to send the signal to the head-end, and no way for the head-end to inform the TiVo what channel to tune to. Furthermore, the TiVo has no way to tuning to an encrypted channel that isn't pre-authorized on the CableCards.

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