The first year is included in the cost of the Bolt. Lifetime then doesn't take effect until year 2 and thus would be years 2-5. So 5 years until it's free and clear (start of year 6) vs. just yearly. Obviously the $400 deal makes it a much more interesting math problem as you'd get about halfway thru year 4 and then it pays for itself. There is still the replacement issue though, if that matters to someone. And I agree there is a resale market for used Tivo's w/lifetime. But we honestly don't know what the market will be 4-5 years down the line or further if someone were to keep it longer. Very well may be it's still a viable option so another thing to think about, but also it could be Tivo (probably owned by some other company by then, but maybe not) won't allow reactivate with the lifetime on it. We just don't know. My fear is someone like Time Warner scooping up Tivo and then nullifying any resale value on the boxes.