TiVo signs Skyworth to build smart TVs powered by TiVo OS

TiVo's smart TV strategy took another step forward this week as the Xperi-owned company signed on China's Skyworth to integrate sets powered by TiVo's operating system in its 2024 lineup.

Skyworth is TiVo's fifth TV OEM partner, joining Vestel, Sharp, Konka and Argos, a UK retailer that is on board to sell TiVo-powered TVs this spring. Within that group, Vestel is now shipping TiVo TVs in seven countries in Europe, including the UK and Germany, under more than a dozen brands, including JVC and Telefunken.

Speaking Thursday on Xperi's Q4 2023 earnings call, CEO Jon Kirchner reiterated that the company expects to launch TiVo-powered smart TVs in the US by the end of 2024.

Xperi's US strategy will face an uphill climb considering the competition with TV makers such as Samsung (Tizen), LG Electronics (webOS) and Vizio (in the process of being acquired by Walmart), as well as Roku, Google (Android TV/Google TV), Amazon (Fire TV) and Xumo, the Comcast-Charter national streaming joint venture.

Target: 2 million TiVo TVs by year-end

But with its initial focus on Europe, TiVo hopes to exit 2024 with 2 million TiVo-powered TVs in the market, putting it on track for a broader plan to have 7 million smart TVs powered by the TiVo OS in the market by 2025.

Related:TiVo advances on smart TVs, streaming options for broadband partners

Kirchner has also charged his company to add at least one additional TV OEM partner this year.

Focus on 'video-over-broadband'

Turning to pay-TV, TiVo is looking for growth of its IPTV platform to eventually offset the decline of its legacy/core video business.

TiVo made some progress on that front in 2023. TiVo's IPTV business saw revenues for the full year climb 38% to $60.02 million as its core pay-TV business declined 10% to $184.68 million. Total pay-TV revenues for full-year 2023 declined 2%. For Q4 2024, total pay-TV revenues were $66.06 million, down 1%.

Within TiVo's IPTV category (something the company likes to call "video-over-broadband"), the company is also pushing TiVo Broadband – a new suite of services tailored for broadband-only customers that features TiVo's interface, its TiVo+ free, ad-supported streaming television (FAST) service and the ability for broadband-only subs to upgrade to a fuller IP-based pay-TV offering. Buckeye Broadband, Blue Stream Fiber, Blue Ridge and Bluepeak are among the first to sign on for the TiVo Broadband package.

Kirchner wants the company to drive at least ten more TiVo Broadband wins this year. "There's quite a bit of interest," he said.

TiVo ended the year with 1.9 million IPTV subscribers, a number that Kirchner expects to reach 2.4 million by the end of 2024.

Related:TiVo makes some hay with 'TiVo Broadband'

Kirchner's broader expectation is for TiVo to exit 2025 with nearly 10 million devices/households on its platform (7 million connected TVs and about 2.8 million IPTV customers), and 10 million cars outfitted with the company's DTS AutoStage platform.

(Source: Xperi Q4 2023 earnings presentation)

With other Xperi businesses factored in, such as connected car and consumer electronics, the company posted Q4 revenues of $137.23 million, up 1%. For full-year 2023, revenues rose 4% to $521.33 million.

Xperi shares were up 22 cents (1.96%) to $11.47 each in after-hours trading Wednesday.