TiVo Forced to Cut Recorder Premium

08 September 2005

Alviso, California headquartered company TiVo has slashed the cost of its digital video recorders in an effort to regain a competitive footing amid fierce rivalry in the US.

The DVR-pioneering corporation, with 3.6 million subscriptions, has significantly marked down the price of its entry-level digital recorder from $100 to $50.

While practically a household name, TiVo is fighting to match the fame of its brand with a lasting business model in an increasingly crowded US market.

Satellite and cable television companies, including the likes of Time Warner and Comcast, are utilising their extensive base of customers and promoting their own DVRs. TiVo's rivals can offer DVRs for free by offsetting the unit price against the revenue they reap from television subscription fees.

In addition, TiVo charges $12.95 (€10.39; £7.04)-a-month for online services that update DVR data and television guides, whereas market competitors on average charge less.

Data sourced from Wall Street Journal Online; additional content by WARC staff