Full Description

TiVo Inc., incorporated in August 1997, is a provider of technology and services for digital video recorders (DVRs). The subscription-based TiVo service redefines home entertainment by providing consumers with a way to record, watch, and control live television and receive movies and television shows from cable, broadcast, and broadband sources, as well as other forms of video content from broadband sources, such as YouTube videos, and a collection of music videos and songs, and Internet radio. Additionally, the Company provides the TiVo service through agreements with television service providers and satellite television providers, as well as international cable and broadcasting companies. TiVo also provides advertising solutions for the television industry, including a platform for advertisers and audience research measurement. As of January 31, 2009, there were approximately 3.3 million subscriptions to the TiVo service.

TiVo offers such features as Season Pass recordings, WishList searches, TiVoToGo transfers, TiVoCast content (which includes content delivered from Amazon Video on Demand, Netflix, and others and in the future Blockbuster), TiVo KidZone, TiVo Online Scheduling and TiVo Search. The Company distributes the TiVo DVR through consumer electronics retailers and through its online store at TiVo.com.

TiVo receive revenues from three main sources: consumers, television service providers and advertisers. The Company’s primary source of revenues is from consumers, who subscribe directly to the TiVo service. TiVo also offers consumers the option to prepay for one to three years of TiVo service. TiVo also works with a satellite television provider, DIRECTV, Comcast, Cablevision Mexico, and in the future Cox, who pay the Company recurring monthly fees in order to offer the TiVo service to their subscribers. The Company receives fees for licensing and professional services from these and other customers. TiVo works directly with television advertisers, agencies, and networks to offer a variety of solutions for the television advertising market. These include short- and long-form video advertising, audience research measurement, lead generation and commerce. Some of the Company’s clients include advertisers and advertising agencies, such as Grey SF, Toyota Motors, Warner Brothers, Universal McCann, OMD, MediaEdge, Mediastorm, IdeaCity, Fox Corp, and the Procter & Gamble Company.

TiVo has developed a technology portfolio that makes the TiVo service available on a standalone retail DVR product line, that receives over-the-air digital signals and is CableCARD ready, on the integrated set-top boxes of satellite television provider DIRECTV, through software downloads on set-top boxes for cable television providers Comcast and in the future Cox, and through over-the-air standard DVB-T in Australia and in future New Zealand. The Company anticipates making the TiVo service available on set-top boxes of additional television service providers in the future. TiVo’s technology for enabling the TiVo service includes: the TiVo service client software platform, the TiVo service infrastructure and TiVo-enabled DVR hardware design.

The TiVo service client software runs on TiVo-enabled DVRs. It consists of operational software required for a TiVo-enabled DVR to deliver the TiVo service. The TiVo client software manages interaction with the TiVo service infrastructure. The TiVo service infrastructure enables the ongoing operation of the TiVo service, managing the distribution of services, and specialized content, such as program guide data, interactive advertising and TiVo client software upgrades. It interfaces with the Company’s billing and customer support systems for service authorization and bug tracking. In addition, the TiVo service infrastructure collects anonymous viewing information uploaded from TiVo-enabled DVRs for use in its audience research measurement efforts.

The TiVo-enabled DVR hardware design is a specification developed by TiVo for set-top boxes containing a hard disk drive, a central processing unit (CPU) and memory, digital video chips, a modem, and other components. The Company provides this design to its contract manufacturer that produces TiVo-branded DVRs. The DVR hardware design has been integrated into a variety of products including standalone TiVo service DVRs, DIRECTV receivers, DVD players, and DVD recorders. A TiVo-enabled DVR without a subscription to the TiVo service has minimal functionality.

The Company competes with Dish, DIRECTV, TV Guide, Microsoft, Aptiv, Digital Digeo, FIOS service, U-verse service, Nielsen, TNS and RenTrak.