TiVo Inc. is trying to get used to life without DirecTV. But it sure ain't easy. The digital video recorder (DVR) pioneer picked up just 53,000 new subscribers in the first quarter, down from 319,000 a year earlier, because it can no longer depend on former partner DirecTV to co-market the service.
In last year's Q1, TiVo gained 247,000 new customers through DirecTV's promotional efforts and 104,000 customers through its own sales efforts. But this time around TiVo netted just 2,000 new subscribers through DirecTV and 91,000 on its own. Partly as a result, the company reported a net loss of $10.7 million in the quarter, compared with a loss of $857,000 in the year-ago period.
Emphasizing the positive in their earnings report, company officials stressed that TiVo now has slightly more than 4.4 million subscribers, up 33% from 3.3 million a year ago. Revenues jumped 38% to $55.1 million from $40.0 million. But subscriber acquisition costs also jumped from $15.6 million to $21.1 million and other expenses rose as well as the company spent more heavily on price discounts, litigation and stock options.