"Certainly based on the feedback that we’ve gotten it appears promising," Rogers told analysts on TiVo's third-quarter earnings call, predicting that the company would gain more subscribers from sales of standalone TiVo receivers during the fourth quarter.
TiVo had been charging $299 for Premiere, a DVR that integrates broadband video content. Under the holiday pricing scheme, monthly subscription prices for the DVR will increase from $12.99 to $20. (See New TiVo DVRs Built for Web & Cable Content and TiVo Building tru2way Version of New Interface.)
Rogers wouldn't rule out extending the pricing strategy beyond the holiday season. While TiVo said that the steep hardware discounts could take a $10 million toll on earnings during the fourth quarter, Rogers was confident that the strategy would drive an increase in average revenue per subscriber.
TiVo could use a jolt in subscribers. It lost 112,000 of them during the third quarter, a total comprising a decrease of 45,000 TiVo-owned subscribers and a drop of 67,000 subscribers through partnerships with pay-TV providers. TiVo now counts 2.27 million subscribers. (See TiVo Posts Q3.)
Rogers said TiVo is driving subscriber growth through a distribution deal with RCN Corp. , and that it expects to see more growth in 2011 through its deals with DirecTV Group Inc. (NYSE: DTV), Cox Communications Inc. , and Suddenlink Communications , as well as European pay-TV firms such as Virgin Media Inc. (Nasdaq: VMED) in the UK, ONO in Spain, and Canal Digital in Scandinavia.
TiVo has also seen “significant interest” from small and mid-sized US MSOs, Rogers added. (See TiVo Covers Its Cable Bases , Cox, TiVo Strike a DVR Deal and Suddenlink Boxes Up TiVo Deal and RCN to Expand TiVo 'Premiere' Rollout.)
Also worth noting from TiVo’s earnings call:
— Steve Donohue, Special to
Tivo dumping their newest Premier model at $99 is a desperation move by bad management. The monthly subscription hike to $20 ($240/year) will drive away more prospective customers than their price cut could possible attract.
Tivo management are not listening to customers who have wanted to stream video between DVRs and from their DVRs to computers and various mobile devices, functionality that other DVRs and Slingbox now provide. The new Premier DVR is also still very buggy after several months in customer hands, with a new user interface that's more difficult and still incomplete.
I tried out a PremierXL DVR as a possible upgrade to the previous model TivoHD, but sent it back in disgust. I also canceled the monthly subscription for one of two existing TivoHD units to start the migration away from their brand to a more innovative alternative.