Light Reading

TiVo Racks Up More Big Gains

Alan Breznick
2/27/2014
50%
50%

Though it didn't quite hit all of Wall Street's financial targets for the quarter, TiVo wrapped up its latest fiscal year with record subscriber gains and revenue increases as it continued to make deals and deploy its set-top boxes and software in North America and Europe.

Wrapping up perhaps its best year ever, TiVo Inc. (Nasdaq: TIVO) added 319,000 subscribers in its fiscal fourth quarter, which ended Jan. 31, including a record 313,000 cable customers. As a result, it closed the fiscal year with 4.2 million subscribers, versus 3.1 million a year earlier. Most notably, it closed out the year with 3.2 million subscribers through its MSO partners, versus 2.1 million cable customers a year earlier. (See TiVo Boasts Record Gains.)

TiVo president and CEO Tom Rogers said the impressive cable subscriber gains came from both sides of the Atlantic as the company continued to make inroads in the US and Western Europe. For instance, the Spanish MSO ONO added 65,000 TiVo subscribers, boosting its total to 323,000. The Swedish MSO com hem AB brought in 38,000 new customers as it began its TiVo rollout in the fall. (See Top European MSOs Embrace Next-Gen Video.)

On the retail front, TiVo reported 6,000 new retail customers in the quarter for its boxes. Though that number seems pretty paltry, it represents the company's first quarterly increase in TiVo-owned subscribers in six years; a year earlier, it lost 13,000 retail customers. TiVo also boosted its gross retail subscriber additions substantially and cut its customer churn rate to the lowest level in almost eight years.

Rogers credited the retail turnaround to the consumer popularity of TiVo's line of next-generation Roamio set-tops, which offer large hard drives, more tuners, and the ability to stream live and recorded programming to multiple screens inside and outside the home. "Roamio is changing the way that viewers consume television," he said on the company's earnings call late Wednesday; 78% of streaming-capable customers are using the video streaming features each month. (See New TiVo DVRs Top Cable Efforts.)

Thanks to these subscriber gains, TiVo reported that fiscal fourth-quarter net sales revenue rose almost 20% from a year earlier to $106.3 million. That still fell below the Wall Street consensus estimate of more than $112 million. Full-year net sales revenue rose more than 30% to $406.3 million.

Despite the big revenue increases, TiVo posted a profit of just $710,000 for the quarter, mainly due to a onetime noncash charge of $4.8 million related to an earlier acquisition. Though the profit came in well below the Wall Street consensus estimate of $6 million, it still represented a reversal from a year earlier, when it posted a loss of $15.8 million. For the year, TiVo reported net income of $271.8 million, versus a $5.3 million loss for the previous year.

TiVo executives said they're looking for more gains on the cable and retail fronts in the coming year. In the US, the company is counting on Comcast Corp. (Nasdaq: CMCSA, CMCSK) to drive retail Roamio sales as the MSO, which has integrated its Xfinity On demand VoD service with TiVo boxes in 60% of its markets, rolls out that integrated service to the rest of the country.

Rogers said Comcast will extend the program's reach to Atlanta, Chicago, Houston, and the remaining markets by the end of June. "We feel very good about what Comcast has been able to do for us. We think we'll continue to push that hard in those markets."

TiVo is also looking for big returns from Digitalsmiths Corp. , the video search and recommendation specialist it bought for $135 million last month. With the addition of Digitalsmiths' customer base, Rogers said, TiVo has working relationships with 18 of the top 25 US pay TV providers, including Time Warner Cable Inc. (NYSE: TWC), DirecTV Group Inc. (NYSE: DTV), and Dish Network LLC (Nasdaq: DISH). (See TiVo to Acquire Digitalsmiths.)

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
3/18/2014 | 7:53:41 PM
Re: The future for TiVo
This is true. More importantly, it leads to forgetting that you ever had to make a choice at some point. I can see why providers don't want to give users an unlimited leash but at the same time, we don't like limits for things we pay for.
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
3/3/2014 | 4:41:18 PM
Too bad Simple.Tv isn't really a competitor
I was hoping Simple.TV would be a competitor to Tivo, but then Comcast started to encrypt all of its channels (since the FCC told them they could start doing so last year). Over the air transmissions are not quite the digital nirvana they were supposed to be. Instead of the "nice" snowy picture you'd get with analog OTA TV, digital OTA TV gives you a binary option of a clear picture or a garbled pixelated one (or a simple blue screen).

Hopefully Aereo wins in court someday!
DOShea
50%
50%
DOShea,
User Rank: Blogger
3/2/2014 | 9:52:06 AM
Re: The quote...
Ok, I've been reading up on the Roamio family, and it (primarily the Plus and Pro versions) sounds pretty cool. It might be the best thing TiVo has done hardware-wise. Still, TiVo's adherence to cable-style exhorbitant pricing makes the Roku 3 look like a more attractive, if not diractly comparable, option.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
2/28/2014 | 11:23:51 PM
Re: The future for TiVo
Actually, I'm partial to Comcast's UI.  Much less so with Verizon's UI.  Time Warner is okay (but now they're Comcast, so meh.)  Haven't really tried much else for the majors.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
2/28/2014 | 11:23:00 PM
Re: The future for TiVo
Agreed, Mitch.  I myself had to give up DVR as a cost-cutting measure a few years back, and now I just shrug my shoulders and rely on online viewing for most of my vegetative needs.
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
2/28/2014 | 11:22:10 PM
Re: The future for TiVo
@pcharles: Hmm, well, on the one hand, back when I didn't mind spending the money on DVR, my pet peeve was having to eventually delete shows to make room instead of getting to indefinitely save my favorites.

On the other hand, I don't have to do that with my Netflix queue...which has led to me to keep hundreds of titles on there that I know I'll never get around to actually watching.

Not having to make a decision leads to not making a decision at all.
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
2/28/2014 | 8:54:52 PM
Re: The future for TiVo
I guess it balances out either way. The monthyl rental amount for the provider's DVR box plus the additional taxes added due to it is probably not that far off from the $18-19.
pcharles09
50%
50%
pcharles09,
User Rank: Light Beer
2/28/2014 | 8:53:26 PM
Re: The future for TiVo
I've never owned a TiVo but that's a good point that you keep it regardless of the provider. Now knowing that, don't you think it'd be cool if TiVo had cloud storage so essentially you'd never "run out" of space (correct me if they already have this...)
albreznick
50%
50%
albreznick,
User Rank: Blogger
2/28/2014 | 4:55:08 PM
Re: The quote...
I think what Rogers meant, Dan, is that viewers are using their Roamio boxes to do a lot of video streaming, including streaming out-of-the-home. So that's not so 1999. But thst's notto say Rogers isn't still living in that era. He's been in the biz a long time now.     
albreznick
50%
50%
albreznick,
User Rank: Blogger
2/28/2014 | 4:51:40 PM
Re: The future for TiVo
Yes, that extra $19 monthly fee for TiVo's service does drive many away. But, as Mitch says, the TiVo user experience is superior to what any cable operatorcan offer. So the tradeoff is worth it for many.
Page 1 / 2   >   >>
Flash Poll
From The Founder
The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
LRTV Huawei Video Resource Center
Du Puts Its Faith in Huawei's Routers

4|9|15   |   3:42   |   (0) comments


Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
LRTV Huawei Video Resource Center
Huawei Gets Active in the Data Center

4|9|15   |   3:17   |   (0) comments


With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
LRTV Huawei Video Resource Center
Blue Consult & Huawei for a Better Solution

4|8|15   |   4:01   |   (0) comments


Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
LRTV Huawei Video Resource Center
Beach Petroleum on eLTE & Mining

4|8|15   |   3:09   |   (0) comments


Network systems integrator Jeremy Hamlyn explains how Huawei's secure packet-based trunking communications system, eLTE, can help remote communities and companies in the mining, oil and gas sectors, deploy efficient communications networks that are perfect for video and data as well as voice.
Upcoming Live Events
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
Hot Topics
Verizon Scores New OTT Content Deals
Mari Silbey, Independent Technology Editor, 4/16/2015
Can WiFi Calling Find Its Voice?
Iain Morris, News Editor, 4/13/2015
Senator Proposes New 'Title X' for Net Neutrality
Carol Wilson, Editor-at-large, 4/13/2015
Nokia, Alcatel-Lucent in Merger Talks
Iain Morris, News Editor, 4/14/2015
Nokia & Alcatel-Lucent: What's Going On?
Ray Le Maistre, Editor-in-chief, 4/15/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Cats with Phones
Steve's Phone Click Here
Steve Saunders's personal phone.