Diego (Moxi) lays off half of its employees, replaces CEO

Discussion in 'TiVo Coffee House - TiVo Discussion' started by stevel, Jan 15, 2008.

  1. stevel

    stevel Dumb Blond TCF Club

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    Engadget reports that Diego has canceled its "oft-delayed" multi-room HD DMR and the "Home Cinema" DMR, has laid off half its staff and replaced its CEO.

    So I guess all those Moxi ads that have been running are for vaporware.

    Link
     
  2. ZeoTiVo

    ZeoTiVo I can't explain

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    it is a tough market to crack, alright.
     
  3. bkdtv

    bkdtv New Member

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    I never understood why Moxi wanted to develop so many different, competing products.

    TiVo has the right idea -- focus on one product design and use a premium enclosure with a larger hard drive to satisfy the higher-end market segment.
     
  4. bicker

    bicker bUU

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    Except them TiVo went ahead and created the TiVo HD. :) Just kidding.

    I don't think this was a failure of product line strategy. This simply isn't a lucrative market in the first place. I don't know what they were thinking.
     
  5. thespacepope72

    thespacepope72 New Member

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    I was thinking about a similar question this morning. What exactly is TiVo and what makes it different than anything else out there? A five forces analysis would be pretty interesting for TiVo.

    1. TiVo's customer service is no better or worse than anyone else out there.

    2. TiVo's pricing structure is confusing at best and screwed up at worst.

    3. TiVo is not a content provider.

    4. TiVo's software and TiVo Desktop is buggy. Desktop has memory leaks and a generally messy interface. The 9.1 software update breaks MP3 playback and audio and playback drops.

    Five Forces:

    Threat of new entry: High. Computer DVR software exists (MythTV, MCE, etc), E*, D*, and cable companies have their own DVR softwares.

    Bargaining Power of Suppliers: Medium. TiVo uses a few special hardware components and the suppliers of those items may hold up production. Tivo uses quite a few off the shelf items such as disk drives etc. Tribune media has little power as a guide supplier because there are other programming grid suppliers. If Amazon doesn't like TiVo's delivery of content, Amazon could easily piggy back on someone else's products. Rhapsody has no power either.

    Threat of substitute products: There are so many options that are not TiVo that I cannot count them. Live TV. IPTV. YouTube. DVD Rentals. DVD recorders.

    Bargaining power of buyers: High. Buyers do not need a TiVo. Buyers can select any of a number of products from their Cable/SatelliteCo provider for no upfront cost, no time commitment, and a relatively low monthly fee.

    Competitive Rivalry: High. There are lots of companies trying to figure out how to make a buck in the DVR market and very few do or will unless they are somehow the conduit (Cable/Satellite) or the Provider (Cable). There are so many failed TiVo competitors that you can't count them all: UltimateTV, ReplayTV, Sony Stand alones, Moxi, etc.

    It is pretty much accepted that consumers want an easy to use digital solution for time-shift viewing but how do you make money in a market that is so crowded? TiVo's financial history is pretty much proof that making money in this market as a provider of stand-alone DVRs is a money losing proposition.

    I am not saying that TiVo can't and won't be successful long term but they really need something to differentiate themselves from everyone else and I just can't see it. The TiVo UI is okay but it is slow. It is my opinion that TiVo's UI is no better or worse than anyone else's and anyone who says it is superior is stating a preference rather than an absolute.
     
  6. ZeoTiVo

    ZeoTiVo I can't explain

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    seriously "YouTube"????

    also you may want to note that it was Diego that was imploding here , not TiVo ;)
     
  7. thespacepope72

    thespacepope72 New Member

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    I'm just saying that some people get their "content" off YouTube.

    Diego did implode but TiVo has never made money and still exists. I was just commenting on the attractiveness of the DVR market.
     
  8. flatcurve

    flatcurve New Member

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    We had nothing to watch or do on a Saturday afternoon once... so I hooked up the Neuros OSD and we watched YouTube clips all afternoon. It was actually really entertaining... I was finding clips from stand up comics, and sketch comedy groups that would never be allowed on TV. Good stuff.
     
  9. MickeS

    MickeS Well-Known Member

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    It's diGEo, not diEGo...

    I agree with bicker. I don't know what they were thinking in the first place.
    This must have been a very last minute decision, as they have already begun beta testing the now canceled products.
     
  10. flatcurve

    flatcurve New Member

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    My guess is that the new echostar and archos offerings rattled their nerves. total guess.
     
  11. classicX

    classicX Don't scream.

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    An interesting analysis.

    I think Tivo had two advantages:

    1) Entering the market early (some might even say, creating the market)
    2) Having a very simple to use interface

    The fact that they have been able to stay alive for so long is astounding, but I think it's due to the fact that nearly everyone you find in an electronics store knows what Tivo is, even though they may or may have one.

    Perhaps the DVR market is just now beginning to grow, thanks to cable companies and satellite companies.

    One thing is clear - Tivo won't continue to survive unless it keeps making deals like the Comcast deal, or gets acquired by someone with deep pockets.
     
  12. classicX

    classicX Don't scream.

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    I thought something looked funny. I was thinking, "Who is Diego?"
     
  13. d_anders

    d_anders Sr Legacy Member

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    Lack of Cash-Flow too, and probably VCs not willing to supply another wave of cash without having established any kind of substantial real revenue stream while they've been spending loads on R&D.

    TiVo is at least generating revenue...just still spending more than it makes.
     
  14. bicker

    bicker bUU

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    I think the most valuable aspect of the analysis is not really a reflection of what TiVo is or will be, but rather why companies like Digeo either won't go up against TiVo or won't succeed (any better than TiVo has, if you even consider how TiVo has done "success").
     
  15. stevel

    stevel Dumb Blond TCF Club

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    All this time I thought it was "Diego"!
     

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