TiVo Reports Results for the Second Quarter Fiscal Year 2009 Ended July 31, 2008

- Adjusted EBITDA for the second quarter was $10.6 million compared to a loss
of $(11.2) million in the year-ago quarter, exceeding guidance

ALVISO, Calif., Aug. 27 /PRNewswire-FirstCall/ -- TiVo Inc.
(Nasdaq: TIVO), the creator of and a leader in television services for digital
video recorders (DVRs), today reported financial results for the second
quarter ended July 31, 2008.
"This was another solid financial quarter for TiVo as we continued to
improve our financial profile by posting substantially better than guided
Adjusted EBITDA of $10.6 million and net income of $2.9 million," said Tom
Rogers, President and CEO of TiVo. "During the quarter, we made significant
progress in several key areas of our business: in terms of our mass
distribution strategy, Comcast has reaffirmed its long term support for our
partnership as evidenced by its roll-out in Connecticut; our international
footprint continues to grow with Seven's successful introduction of TiVo to
the Australian market; and on the standalone side of the business, with the
recent addition of YouTube content delivered right to the TV set, our vision
of creating the ultimate television dream machine is coming to fruition as
subscribers now have access to the broadest array of content, options, and
features in the world, delivering consumers what they want, when they want
it."
For the second quarter, service and technology revenues were
$53.5 million, compared with $56.5 million for the same period last year.
Adjusted EBITDA was $10.6 million, compared to guidance of $3 million to
$5 million and an Adjusted EBITDA loss of $(11.2) million in the year-ago
period. The better than guidance net income and Adjusted EBITDA were driven
by better than expected hardware margin and lower than anticipated operating
expenses, primarily from less marketing expenditures. TiVo reported net income
of $2.9 million, compared to guidance of a net loss of $(2) to $(4) million
and a net loss of $(17.7) million in the second quarter of last year. Net
income per share was $0.03, compared to a loss of $(0.18) per share for the
second quarter of last year. Note that last year's second quarter net loss and
Adjusted EBTIDA results were impacted by an $11.2 million inventory reserve
related to standard definition product, and this quarter we benefitted from
the utilization of $1.4 million of that inventory reserve.
In regards to our mass distribution strategy, a top Comcast executive
offered the following comments on the progress the TiVo on Comcast service has
made to date: "We are pleased with the progress of the TiVo service and have
broadened its footprint in our New England market to Connecticut. Refinements
to optimize the product's performance have been mostly completed,
significantly improving the user experience. Importantly, we intend to light
up a full marketing campaign around TiVo in September and, upon this
occurring, we will be announcing multiple additional markets to which TiVo
will be rolled out through next year. We will also continue to fund
development work for the TiVo product, which will include expanding the
feature set and adding support for Tru2way infrastructure."
Rogers stated, "Additionally, the TiVo service on Cox, which is currently
in trials, is on track for a launch in Cox's New England market later this
year."
"On the international front, Seven and TiVo successfully launched the TiVo
service in Australia and because of the significant consumer demand there,
retailers chose to release the product early. We are also extremely pleased
with the marketing shoulder Seven is putting behind this launch as they've
prominently featured TiVo in their marketing and programming including the
Olympic opening ceremonies, their top rated morning show, and a special
advertising spot they developed, which includes dozens of Australian
celebrities. International distribution is an increasingly important
component of our business model and there continues to be tremendous interest
from international distributors for the TiVo offering."
"In terms of our litigation with EchoStar and defending our intellectual
property, we are now in the enforcement phase of the process. On September 4,
2008, there is a contempt hearing scheduled to determine whether EchoStar is
in contempt of the injunction that has already been upheld by the U.S. Court
of Appeals for the Federal Circuit, enjoining them from selling and operating
infringing units as well as to determine further damages from EchoStar's
continued infringement after September 2006. We remain confident in the
outcome and look forward to final resolution in the near-future and to
realizing the value of our intellectual property."
Mr. Rogers continued, "On the TiVo-Owned side of the business, our goal of
making our standalone product a comprehensive video solution - one box, one
remote, one user interface and a one-stop shop for all content from all
sources is becoming a reality. We are continually adding more content choices
to our offering and recently announced the availability of YouTube. TiVo can
now provide access to more television and broadband content choices than any
other offering in the world, with thousands of movies and televisions shows
and millions of songs and videos available at any time."
"Our continued efforts to focus on efficient marketing spend and to work
with third parties who make their own marketing expenditures on behalf of TiVo
is underscored by the decline of our quarterly subscription acquisition costs
(SAC) to $135, a considerable decrease when compared to SAC of $758 during the
same period last year even considering that the prior year's SAC included the
impact of the $11.2 million inventory reserve. We are driving TiVo sales
through relationships with leading retailers and consumer electronic
manufacturers that will also market the product. For example, we are currently
working with many Best Buy stores in six of its larger markets where TiVo is
being made available as part of a special bundled offer as the recommended
cable set top box of choice to be purchased with HD televisions. Also in these
markets, Best Buy is creating a TiVo-branded living-room environment, making
the television entertainment experience as compelling as possible. These
efforts, along with others, will enable us to build on our standalone business
while we also manage subscription acquisition costs and overall marketing
expenditures."
"Another key example of our partnering with third parties to use their
marketing resources to drive TiVo is the announcement we made today with the
leading consumer entertainment industry magazine, Entertainment Weekly. We
are teaming up with Entertainment Weekly to deliver and jointly market its
'What to Watch' TV picks directly to the television while TiVo automatically
records the recommended shows. This ensures that broadband enabled TiVo users
always have these top picks available to watch whenever they tune in. This
partnership allows two powerful brands to work together to create a seamless
television viewing experience, underscoring TiVo's goal of providing easy
solutions that bring together television viewing with an individual's
lifestyle. We are encouraged by the number of media companies that continue
to express real interest in using TiVo's technology to help bring innovation
to their existing business models, and view these relationships as an
opportunity to drive incremental subscriptions in an efficient manner.
TiVo-Owned subscription gross additions for the second quarter were
approximately 36,000, compared to 41,000 gross additions for the year-ago
period. The TiVo-Owned monthly churn rate was 1.5%, up from 1.3% in the prior
quarter and equivalent to the rate in the fourth quarter of fiscal 2008.
Overall, TiVo-Owned subscriptions ended the quarter at approximately 1.7
million. As expected, TiVo reported a net decline in MSOs/Broadcaster
subscriptions during the period as DIRECTV is no longer deploying new TiVo
boxes and other mass distribution deals are still in the early phases of
deployment. Cumulative total subscriptions as of July 31, 2008 were 3.6
million."
Rogers continued, "We are also making solid progress in our advertising
business. TiVo has created a number of ad solutions that are aimed at
overcoming the enormous challenge facing the television industry as DVR-based
consumer control becomes even more pervasive. We continue to build strong
relationships with many television advertisers, advertising agencies,
television networks, and cable operators and are working with all of them to
solve the issues that come with commercial avoidance. The progress we have
made is clear: when compared to last year's second quarter, approximately 50
percent more advertisers utilized TiVo in the second quarter of this year.
This is an indication that TiVo will play a meaningful role in the future of
television advertising."
"More specifically, we continue to prove that our ad solutions are some of
the most unique and innovative available to marketers. We recently announced
a deal with Amazon that provides TiVo users with the ability to purchase
products from Amazon.com directly from their TV sets, enabling advertisers to
strategically promote merchandise on any network or program. The new Product
Purchase offering garnered significant media attention largely due to the fact
that the new interactive advertising solution is consistent with how people
actually watch television, and brings immediacy to product purchase because it
focuses on the media products themselves. Critical to its success, viewers
can pause what they are watching while searching for and purchasing
merchandise right from their TV, and then return to their show without having
missed a second -- a component absent from previous failed interactive
advertising efforts attempted by many over the years. The application of this
approach to the increased use of product placements as an advertising tool is
also a very promising one."
"In regards to our Audience Research & Measurement business, there is no
more important issue to the business of television than understanding the
impact of DVRs on viewing behavior. TiVo has been working closely with the
media industry to help bring higher levels of measurability to TV advertising,
similar to those achieved on the Internet. During the quarter, we launched
our Power||Watch(TM) ratings service that provides, for the first time, a
report that gives commercial ratings in a DVR environment based on demographic
data. This powerful research tool is essentially a companion to our flagship
Stop||Watch(TM) ratings service, which compiles second-by-second behavioral
and viewership data from a separate anonymous sample. A critical finding of
our new ratings service is that all types of viewers are fast-forwarding ads
at high rates, and the notion that only 'early adopters' of TiVo DVRs are
skipping commercials has now been debunked."
"We also entered into an agreement with a leading media marketing research
company, TRA, to license anonymous viewing data from TiVo's standalone
subscription base and market a bundled offering that provides marketers with
the ability to get from a single source reports that measure the effectiveness
of advertising, by analyzing the long sought correlation between advertising
and precise purchasing data emanating from the very households that viewed the
advertising. The TiVo-TRA offering not only provides this unique view, but
does so on an unprecedented scale for up to one million households by
utilizing a proprietary method of matching anonymous viewing behavior with
purchasing behavior."
Mr. Rogers concluded, "We believe this quarter we delivered strong
financial results, and continued to gain traction in our mass distribution
strategy, continued to expand our advertising and audience research business,
and continued to take the necessary steps for us to successfully capitalize on
the growth opportunities in our TiVo-Owned business in the future. We are
beginning to see the results of our hard work and believe that we have all the
right pieces set in motion to move the business forward."
Management Provides Financial Guidance
For the third quarter of fiscal 2009, TiVo anticipates service and
technology revenues in the range of $49 million to $51 million, a net loss in
the range of ($7) million to ($9) million, and Adjusted EBITDA in the range of
($1) to $1 million.
This financial guidance is based on information available to management as
of August 27, 2008. TiVo expressly disclaims any duty to update this guidance.
Management's guidance includes Adjusted EBITDA, a non-GAAP financial
measure as defined in Regulation G. TiVo has provided a reconciliation of
EBITDA and Adjusted EBITDA to net income (loss) in the attached schedules
solely for the purpose of complying with Regulation G and not as an indication
that EBITDA or Adjusted EBITDA is a substitute measure for net income (loss).
Conference Call and Webcast
TiVo will host a conference call and Webcast to discuss the second quarter
financial and operating results and guidance outlook at 2:00 pm PT (5:00 pm
ET), today, August 27, 2008. To listen to the discussion, please visit
http://www.tivo.com/ir and click on the link provided for the Webcast or dial
(888) 245-0932 (no password required). The Webcast will be archived and
available through September 4, 2008 at http://www.tivo.com/ir or by calling
(719) 457-0820 and entering the conference ID number 3952414.
About TiVo Inc.
Founded in 1997, TiVo (Nasdaq: TIVO) pioneered a brand new category of
products with the development of the first commercially available digital
video recorder (DVR). Sold through leading consumer electronic retailers and
TiVo.com, TiVo has developed a brand which resonates boldly with consumers as
providing a superior television experience. Through agreements with leading
satellite and cable providers, TiVo also integrates its DVR service features
into the set-top boxes of mass distributors. TiVo's DVR functionality and ease
of use, with such features as Season Pass(TM) recordings and WishList(R)
searches and TiVo KidZone, have elevated its popularity among consumers and
have created a whole new way for viewers to watch television. With a continued
investment in its patented technologies, TiVo is revolutionizing the way
consumers watch and access home entertainment. Rapidly becoming the focal
point of the digital living room, TiVo's DVR is at the center of experiencing
new forms of content on the TV, such as broadband delivered video, music, and
photos. With innovative features, such as TiVoToGo(TM) transfers and online
scheduling, TiVo is expanding the notion of consumers experiencing "TiVo, TV
your way.(R)" The TiVo(R)service is also at the forefront of providing
innovative marketing solutions for the television industry, including a unique
platform for advertisers and audience research measurement.
TiVo, "TiVo, TV your way." Season Pass, WishList, TiVoToGo, and the TiVo
Logo are trademarks or registered trademarks of TiVo Inc.'s subsidiaries
worldwide. (C) 2008 TiVo Inc. All rights reserved
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements relate to,
among other things, TiVo's future business and growth strategies including
TiVo's mass distribution strategy and bundling efforts, profitability and
financial guidance, distribution of the TiVo service domestically with Comcast
and Cox and internationally with Seven in Australia , growth and innovation in
TiVo's advertising and audience research measurement business and the
licensing thereof, the timing and availability of broadband content, TiVo's
software development for the cable industry, the results of TiVo's litigation
with EchoStar, TiVo's future marketing spending and related activities, and
financial performance. Forward-looking statements generally can be identified
by the use of forward-looking terminology such as, "believe," "expect," "may,"
"will," "intend," "estimate," "continue," or similar expressions or the
negative of those terms or expressions. Such statements involve risks and
uncertainties, which could cause actual results to vary materially from those
expressed in or indicated by the forward-looking statements. Factors that may
cause actual results to differ materially include delays in development,
competitive service offerings and lack of market acceptance, as well as the
other potential factors described under "Risk Factors" in the Company's public
reports filed with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the fiscal year ended January 31,
2008, Quarterly Report on Form 10-Q for the quarter ended April 30, 2008 and
Current Reports on Form 8-K. The Company cautions you not to place undue
reliance on forward-looking statements, which reflect an analysis only and
speak only as of the date hereof. TiVo disclaims any obligation to update
these forward-looking statements.

TIVO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and share amounts)
(unaudited)

Three Months Ended Six Months Ended
July 31, July 31,
2008 2007 2008 2007

Revenues
Service revenues $48,174 $53,376 $96,617 $107,531
Technology revenues 5,369 3,084 11,776 7,016
Hardware revenues 11,699 6,199 17,644 8,492
Net revenues 65,242 62,659 126,037 123,039
Cost of revenues
Cost of service
revenues (1) 11,245 10,064 22,439 20,219
Cost of technology
revenues (1) 3,124 3,696 7,044 7,203
Cost of hardware
revenues 15,249 28,271 25,593 38,919
Total cost of revenues 29,618 42,031 55,076 66,341
Gross margin 35,624 20,628 70,961 56,698
Research and
development (1) 15,323 15,070 30,071 29,315
Sales and marketing
(1) 5,906 5,381 11,842 10,684
Sales and marketing,
subscription
acquisition costs 888 9,015 2,047 14,805
General and
administrative (1) 10,869 10,392 21,205 21,614
Total operating
expenses 32,986 39,858 65,165 76,418
Income (loss) from
operations 2,638 (19,230) 5,796 (19,720)
Interest income 421 1,331 1,000 2,747
Interest expense and
other (94) 209 (181) 126
Income (loss) before
income taxes 2,965 (17,690) 6,615 (16,847)
Provision for income
taxes (23) - (36) (8)
Net income (loss) $2,942 $(17,690) $6,579 $(16,855)
Net income (loss) per
common share - basic $0.03 $(0.18) $0.07 $(0.17)
Net income (loss) per
common share - diluted $0.03 $(0.18) $0.06 $(0.17)
Weighted average
common shares used to
calculate basic net
income (loss) per
share 100,025,002 97,084,184 99,705,914 96,956,656
Weighted average
common shares used to
calculate diluted net
income (loss) per
share 102,217,222 97,084,184 102,489,411 96,956,656

(1) Includes stock-
based compensation
expense as follows :
Cost of service
revenues $239 $178 $430 $335
Cost of technology
revenues 507 504 1,113 967
Research and
development 2,140 1,967 4,122 3,595
Sales and marketing 336 332 876 808
General and
administrative 2,352 2,261 4,510 4,177

TIVO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(unaudited)

July 31, 2008 January 31, 2008
ASSETS

CURRENT ASSETS
Cash and cash equivalents $105,777 $78,812
Short-term investments - 20,294
Accounts receivable, net of allowance
for doubtful accounts of $1,263 and
$1,194 14,456 20,019
Inventories 9,910 17,748
Prepaid expenses and other, current 3,685 3,792
Total current assets 133,828 140,665

LONG-TERM ASSETS
Property and equipment, net 10,620 11,349
Purchased technology, capitalized
software, and intangible assets, net 12,225 13,522
Prepaid expenses and other, long-term 1,735 1,513
Long-term investments 4,451 -
Total long-term assets 29,031 26,384
Total assets $162,859 $167,049

LIABILITIES AND STOCKHOLDERS'
EQUITY

LIABILITIES
CURRENT LIABILITIES
Accounts payable $14,211 $23,615
Accrued liabilities 25,273 28,834
Deferred revenue, current 54,357 59,341
Total current liabilities 93,841 111,790

LONG-TERM LIABILITIES
Deferred revenue, long-term 30,604 38,128
Deferred rent and other 145 309
Total long-term liabilities 30,749 38,437
Total liabilities 124,590 150,227

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Preferred stock, par value $0.001:
Authorized shares are 10,000,000;
Issued and outstanding shares -
none - -
Common stock, par value $0.001:
Authorized shares are
275,000,000;
Issued shares are 102,225,380 and
100,098,426, respectively, and
outstanding shares are
102,008,361 and 99,970,947,
respectively 102 100
Additional paid-in capital 808,753 792,654
Accumulated deficit (768,507) (775,086)
Treasury stock, at cost - 217,019
shares and 127,479 shares,
respectively (1,530) (846)
Unrealized loss on marketable
securities (549) -
Total stockholders' equity 38,269 16,822
Total liabilities and
stockholders' equity $162,859 $167,049

TIVO INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six Months Ended July 31,
2008 2007

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $6,579 $(16,855)
Adjustments to reconcile net
income (loss) to net cash provided
by(used in) operating activities:
Depreciation and amortization of
property and equipment and
intangibles 5,070 5,206
Stock-based compensation expense 11,051 9,882
Inventory write-down - 7,486
Loss on inventory barter
transaction - 989
Allowance for doubtful accounts 69 637
Changes in assets and liabilities:
Accounts receivable 5,494 6,502
Inventories 7,838 (3,007)
Prepaid expenses and other (115) 224
Accounts payable (9,595) (17,218)
Accrued liabilities (3,561) (8,011)
Deferred revenue (12,508) (15,613)
Deferred rent and other long-
term liabilities (164) (128)
Net cash provided by(used in)
operating activities $10,158 $(29,906)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term and long-
term investments - (15,014)
Sales of short-term investments 15,294 9,000
Acquisition of property and
equipment (2,535) (3,900)
Acquisition of capitalized software
and intangibles (318) (375)
Net cash provided by (used in)
investing activities $12,441 $(10,289)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common
stock related to exercise of
common stock options 5,050 1,484
Proceeds from issuance of common
stock related to employee stock
purchase plan - 1,826
Treasury Stock - repurchase of
stock for tax withholding (684) (265)
Net cash provided by financing
activities $4,366 $3,045
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $26,965 $(37,150)

CASH AND CASH EQUIVALENTS:
Balance at beginning of period 78,812 89,079
Balance at end of period $105,777 $51,929

TIVO INC.
OTHER DATA
Guidance
Reconciliation
Three Months
Three Months Ended Six Months Ended Ending
July 31, July 31, October 31,
2008 2007 2008 2007 2008
(In thousands) (In thousands) (in millions)

Net income (loss) $2,942 $(17,690) $6,579 $(16,855) $(7) - $(9)
Add back:
Depreciation &
amortization 2,498 2,586 5,070 5,206 $2 - $3
Interest income &
expense (405) (1,324) (969) (2,724) $(1)
Provision for
income tax 23 - 36 8 $0 - $1
EBITDA 5,058 (16,428) 10,716 (14,365) $(6)
Stock-based
compensation 5,574 5,242 11,051 9,882 $5 - $7
Adjusted
EBITDA $10,632 $(11,186) $21,767 $(4,483) $(1) - $1

EBITDA and Adjusted EBITDA Results. TiVo's "EBITDA" means income before
interest income and expense, provision for income taxes and depreciation and
amortization. TiVo's "Adjusted EBITDA" is EBITDA less expense for stock-based
compensation. EBITDA and Adjusted EBITDA are not measures of financial
performance under generally accepted accounting principles, which we refer to
as GAAP. A table reconciling TiVo's EBITDA and Adjusted EBITDA to GAAP net
income is included with the condensed consolidated financial statements
attached to this release. We have presented EBITDA and Adjusted EBITDA solely
as supplemental disclosure because we believe they allow for a more complete
analysis of our results of operations and we believe that EBITDA and Adjusted
EBITDA are useful to investors because EBITDA and Adjusted EBITDA are commonly
used to analyze companies on the basis of operating performance. In addition,
because of the variety of equity awards used by companies, the varying
methodologies for determining stock-based compensation expense, and the
subjective assumptions involved in those determinations, we believe excluding
stock-based compensation enhances the ability of management and investors
evaluate our operating performance over multiple periods. Management does not
use EBITDA or Adjusted EBITDA as a measure of liquidity because, among other
things, they do not exclude the impact of deferred revenues associated with
the amortization of product lifetime subscriptions. We do not use stock-based
compensation expense in our internal measures. A limitation associated with
these non-GAAP measures is that they do not include any stock-based
compensation expense related to hiring, retaining, and incentivizing the
Company's workforce. EBITDA and Adjusted EBITDA are not intended to
represent, and should not be considered more meaningful than, or as an
alternative to, measures of operating performance as determined in accordance
with GAAP.

TIVO INC.
OTHER DATA

Subscriptions
Three Months Ended July 31,
(Subscriptions in thousands) 2008 2007

TiVo-Owned Subscription Gross
Additions 36 41

Subscription Net
Additions/(Losses):
TiVo-Owned (42) (19)
MSOs/Broadcasters (136) (126)
Total Subscription Net
Additions/(Losses) (178) (145)
Cumulative Subscriptions:
TiVo-Owned 1,686 1,708
MSOs/Broadcasters 1,937 2,489
Total Cumulative
Subscriptions 3,623 4,197
% of TiVo-Owned Cumulative
Subscriptions paying recurring fees 60% 59%

Included in the 1,686,000 TiVo-Owned subscriptions are approximately
194,000 lifetime subscriptions that have reached the end of the period TiVo
uses to recognize lifetime subscription revenue. These lifetime subscriptions
no longer generate subscription revenue.
Subscriptions. Management reviews this metric, and believes it may be
useful to investors, in order to evaluate our relative position in the
marketplace and to forecast future potential service revenues. The TiVo-Owned
lines refer to subscriptions sold directly or indirectly by TiVo to consumers
who have TiVo-enabled DVRs and for which TiVo incurs acquisition costs. The
MSOs/Broadcasters lines refer to subscriptions sold to consumers by
MSOs/Broadcasters such as DIRECTV, Cablevision Mexico, Seven(Australia), and
Comcast for which TiVo expects to incur little or no acquisition costs.
Additionally, we provide a breakdown of the percent of TiVo-Owned
subscriptions for which consumers pay recurring fees, including on a monthly
and a prepaid one, two, or three year basis, as opposed to a one-time prepaid
product lifetime fee.
We define a "subscription" as a contract referencing a TiVo-enabled DVR
for which (i) a consumer has committed to pay for the TiVo service and (ii)
service is not canceled. We count product lifetime subscriptions, until both
of the following conditions are met: (i) the period we use to recognize
product lifetime subscription revenues ends; and (ii) the related DVR has not
made contact to the TiVo service within the prior six-month period. Product
lifetime subscriptions past this period which have not called into the TiVo
service for six months are not counted in this total. During the quarter ended
April 30, 2006, we discontinued general sale of the product lifetime service
option. During the quarter ended January 31, 2008, we began offering product
lifetime service subscriptions only to existing customers and in May 2008 we
began offering product lifetime subscriptions to all customers. Effective
November 1, 2007, we have extended the period we use to recognize product
lifetime subscription revenues from 48 months to 54 months for product
lifetime subscriptions acquired on or before October 31, 2007. Additionally,
we also increased the amortization period to 60 months for new product
lifetime subscriptions acquired on or after November 1, 2007. We are not aware
of any uniform standards for defining subscriptions and caution that our
presentation may not be consistent with that of other companies. Additionally,
the subscription fees that some of our MSOs/Broadcasters pay us may be based
upon a specific contractual definition of a subscriber or subscription which
may not be consistent with how we define a subscription for our reporting
purposes.

TIVO INC.
OTHER DATA - KEY BUSINESS METRICS

Three Months Ended July 31,
TiVo-Owned Churn Rate 2008 2007
(In thousands, except
churn rate per month)
Average TiVo-Owned subscriptions 1,712 1,719
TiVo-Owned subscription cancellations (78) (60)
TiVo-Owned Churn Rate per month -1.5% -1.2%

TiVo-Owned Churn Rate per Month. Management reviews this metric, and
believes it may be useful to investors, in order to evaluate our ability to
retain existing TiVo-Owned subscriptions (including both monthly and product
lifetime subscriptions) by providing services that are competitive in the
market. Management believes factors such as service enhancements, service
commitments, higher customer satisfaction, and improved customer support may
improve this metric. Conversely, management believes factors such as increased
competition, lack of competitive service features such as high definition
television recording capabilities for our low cost product offerings, and
increased price sensitivity may cause our TiVo-Owned Churn Rate per month to
increase.
We define the TiVo-Owned Churn Rate per month as the total TiVo-Owned
subscription cancellations in the period divided by the Average TiVo-Owned
subscriptions for the period (including both monthly and product lifetime
subscriptions), which then is divided by the number of months in the period.
We calculate Average TiVo-Owned subscriptions for the period by adding the
average TiVo-Owned subscriptions for each month and dividing by the number of
months in the period. We calculate the average TiVo-Owned subscriptions for
each month by adding the beginning and ending subscriptions for the month and
dividing by two. We are not aware of any uniform standards for calculating
churn and caution that our presentation may not be consistent with that of
other companies.

Three Months Ended Twelve Months Ended
July 31, July 31,
2008 2007 2008 2007
Subscription Acquisition Costs (In thousands, except SAC)

Sales and marketing, subscription
acquisition costs $888 $9,015 $18,292 $29,736
Hardware revenues (11,699) (6,199) (50,950) (41,858)
Less: MSOs/Broadcasters-related
hardware revenues 4,934 - 5,632 -
Cost of hardware revenues 15,249 28,271 78,592 114,378
Less: MSOs/Broadcasters-related
cost of hardware revenues (4,515) - (5,096) -
Total Acquisition Costs 4,857 31,087 46,470 102,256
TiVo-Owned Subscription Gross
Additions 36 41 262 362
Subscription Acquisition Costs
(SAC) $135 $758 $177 $282

Subscription Acquisition Cost or SAC. Management reviews this metric, and
believes it may be useful to investors, in order to evaluate trends in the
efficiency of our marketing programs and subscription acquisition strategies.
We define SAC as our total acquisition costs for a given period divided by
TiVo-Owned subscription gross additions for the same period. In the first
fiscal quarter of 2008, we revised our definition of total acquisition costs.
We now define total acquisition costs as sales and marketing, subscription
acquisition costs less net TiVo-Owned related hardware revenues (defined as
TiVo-Owned related gross hardware revenues less rebates, revenue share and
market development funds paid to retailers) plus TiVo-Owned related cost of
hardware revenues. The sales and marketing, subscription acquisition costs
line item includes advertising expenses and promotion-related expenses
directly related to subscription acquisition activities, but does not include
expenses related to advertising sales. We do not include third parties
subscription gross additions, such as MSOs/Broadcasters' gross additions with
TiVo subscriptions, in our calculation of SAC because we incur limited or no
acquisition costs for these new subscriptions. We are not aware of any uniform
standards for calculating total acquisition costs or SAC and caution that our
presentation may not be consistent with that of other companies.

Three Months Ended July 31,
TiVo-Owned Average Revenue per Subscription 2008 2007
(In thousands, except ARPU)

Total Service revenues $48,174 $53,376
Less: MSOs/Broadcasters-related
service revenues (5,781) (6,553)
TiVo-Owned-related service revenues 42,393 46,823
Average TiVo-Owned revenues per month 14,131 15,608
Average TiVo-Owned per month subscriptions 1,712 1,719
TiVo-Owned ARPU per month $8.25 $9.08

Three Months Ended July 31,
MSOs/Broadcasters Average Revenue
per Subscription 2008 2007
(In thousands, except ARPU)

Total Service revenues $48,174 $53,376
Less: TiVo-Owned-related service revenues (42,393) (46,823)
MSOs/Broadcasters-related service revenues 5,781 6,553
Average MSOs/Broadcasters revenues per month 1,927 2,184
Average MSOs/Broadcasters per month
subscriptions 2,009 2,554
MSOs/Broadcasters ARPU per month $0.96 $0.86

Average Revenue Per Subscription or ARPU. Management reviews this metric,
and believes it may be useful to investors, in order to evaluate the potential
of our subscription base to generate revenues from a variety of sources,
including subscription fees, advertising, and audience research measurement.
ARPU does not include rebates, revenue share and other payments to channel
that reduce our GAAP revenues. As a result, you should not use ARPU as a
substitute for measures of financial performance calculated in accordance with
GAAP. Management believes it is useful to consider this metric excluding the
costs associated with rebates, revenue share and other payments to channel
because of the discretionary and varying nature of these expenses and because
management believes these expenses, which are included in hardware revenues,
net, are more appropriately monitored as part of SAC. We are not aware of any
uniform standards for calculating ARPU and caution that our presentation may
not be consistent with that of other companies.
We calculate ARPU per month for TiVo-Owned subscriptions by subtracting
MSOs/Broadcaster-related service revenues (which includes MSOs/Broadcasters'
subscription service revenues and MSOs/Broadcasters'-related advertising
revenues) from our total reported net service revenues and dividing the result
by the number of months in the period. We then divide by Average TiVo-Owned
subscriptions for the period, calculated as described above for churn rate.
The above table shows this calculation.
We calculate ARPU per month for MSOs/Broadcasters' subscriptions by first
subtracting TiVo-Owned-related service revenues (which includes TiVo-Owned
subscription service revenues and TiVo-Owned related advertising revenues)
from our total reported service revenues. Then we divide average revenues per
month for MSOs/Broadcasters'-related service revenues by the average
MSOs/Broadcasters' subscriptions for the period.
Beginning in February 2006, pursuant to the most recent amendment of our
agreement with DIRECTV, TiVo began deferring a portion of the DIRECTV
subscription fees equal to the fair value of the undelivered development
services. Additionally, beginning in February 2007, DIRECTV began paying us a
monthly fee for all DIRECTV households with DIRECTV receivers with TiVo
service similar to the lower amount paid by DIRECTV for households with
DIRECTV receivers with TiVo service deployed since March 15, 2002, subject to
a monthly minimum payment by DIRECTV.
SOURCE TiVo Inc.

Investor Relations, Derrick Nueman of TiVo Inc., +1-408-519-9677, ir@tivo.com;
Media Relations, Whit Clay of Sloane & Company, +1-212-446-1864,
wclay@sloanepr.com, for TiVo Inc.