This needs to be corrected as it is not 1 million retail customers but 1 million retail devices connecting to the service, which includes minis. Most retail owners have multiple retail devices so the actual number of retail owners is around 200,000 or less. I think the actual number of retail devices is around 960,000.What's the going CPM rate nowadays for preroll?
Did TiVo hire an army of sales reps to sell directly to advertisers in various markets?
Or are they just leveraging a back-fill ad network? (Substantially less revenue there)
how much revenue do we actually think this will bring in? They have less than 1M retail customers as of now. (Not all of which are eligible for ads)
if they're using an ad network I can't see them making a ton of money.
If they hired sales staff, that's a large cost and investment that they'd need to ensure they cover with generated sales.
Is there anything in their recent investor reports to give an idea of their anticipated revenue?
On the MSO side they count households so the actual number of devices is a lot higher. The last count I heard for MSO is like 6 million households and that number is from a few years ago. The number of MSO customers is growing and the number of retail customers is dropping so there really is no money in retail.
Since Rovi was Gemstar TVGuide they used to have ads on their TVGOS guides that were embedded in retail guides. There was a add pane on the left side of the guide. The cost of TVGOS (TVGuide on Screen) was included in the cost of the retail devices, and they then decided to add the ads in later to increase revenue to cover the cost of operating the consumer guide side of the business. The MSO side had the IGuide and PassPort Echo UI and they had the small ads in those guides.
Now Rovi bought TiVo so they are now doing the same with the retail side of the business. Hopefully they do not do what they did to us TVGOS users and give a 6 months notice that the service was ending and pull the plug. There was users that were threatening law suits back then but nobody ever done anything about it as the cost was to high to hire lawyers and litigate the case. There was a few that took their Sony DHG dvrs and through them in the lobby of their headquarters so Rovi would have to recycle them. Some users like me wrote corporate letters pleading our case to keep it going but that was no help either. It just ended up as a cost cutting measure to please the shareholders at the end of the day.