TiVo phasing out lifetime service plan (merged)
03-08-06, 08:20 PM
#1
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TiVo phasing out lifetime service plan
http://news.com.com/TiVos+lifetime+s...l?tag=nefd.top
I wonder what the fine print is on the $16.95/mo for 3 years - if your box dies during that time period, does this cover a replacement box, or would it require an additional 3-year contract?
TiVo's lifetime service plan dies
By Daniel Terdiman
Staff Writer, CNET News.com
TiVo is phasing out its popular lifetime service plan and implementing a series of flexible pricing options that include the company's hardware, the DVR maker announced on Wednesday.
For some time, customers of the leading digital video recorder technology and service provider have been able to pay a $299 flat fee for lifetime TiVo service. But the Alviso, Calif., company said it plans to eliminate that option as of next week.
"Clearly, it's something that's had some popularity with our subscriber base," said Todd Juenger, TiVo's vice president of strategic planning.
"We understand it's a great value, but in balancing trying to provide customers with great value and our own business interests, we think it was too far in favor of good value to make sense for us financially," Juenger said.
TiVo customers who already have the lifetime plan will not be affected, according to the company.
Now, TiVo said it hopes to keep attracting new customers by offering several service packages that include its 80-hour Series2 DVR boxes in the price and that therefore require no up-front hardware investment.
Customers signing a one-year plan will pay $19.95 a month for TiVo service and a box, while a two-year commitment lowers the price to $18.95 a month, and a three-year agreement to $16.95 a month.
The company's decision to include its equipment as part of service plans is not a surprise. Last month, CEO Tom Rodgers hinted that the company was leaning that way.
In a statement Wednesday, Rodgers said, "Over the past several months, we have done extensive research on our pricing strategy and distribution model with a focus on finding the simplest and most efficient way to increase sales and drive penetration of the TiVo service."
Last week, TiVo announced KidZone, a service that enables parents to search for programming appropriate for their children and separate those shows from content recorded for adults.
By Daniel Terdiman
Staff Writer, CNET News.com
TiVo is phasing out its popular lifetime service plan and implementing a series of flexible pricing options that include the company's hardware, the DVR maker announced on Wednesday.
For some time, customers of the leading digital video recorder technology and service provider have been able to pay a $299 flat fee for lifetime TiVo service. But the Alviso, Calif., company said it plans to eliminate that option as of next week.
"Clearly, it's something that's had some popularity with our subscriber base," said Todd Juenger, TiVo's vice president of strategic planning.
"We understand it's a great value, but in balancing trying to provide customers with great value and our own business interests, we think it was too far in favor of good value to make sense for us financially," Juenger said.
TiVo customers who already have the lifetime plan will not be affected, according to the company.
Now, TiVo said it hopes to keep attracting new customers by offering several service packages that include its 80-hour Series2 DVR boxes in the price and that therefore require no up-front hardware investment.
Customers signing a one-year plan will pay $19.95 a month for TiVo service and a box, while a two-year commitment lowers the price to $18.95 a month, and a three-year agreement to $16.95 a month.
The company's decision to include its equipment as part of service plans is not a surprise. Last month, CEO Tom Rodgers hinted that the company was leaning that way.
In a statement Wednesday, Rodgers said, "Over the past several months, we have done extensive research on our pricing strategy and distribution model with a focus on finding the simplest and most efficient way to increase sales and drive penetration of the TiVo service."
Last week, TiVo announced KidZone, a service that enables parents to search for programming appropriate for their children and separate those shows from content recorded for adults.
03-08-06, 09:10 PM
#3
DVD Talk Gold Edition
More info from tivo.com:
TIVO ANNOUNCES NEW PRICING PLANS
New Bundled Offering, Flexible Pricing and Service Commitments Will Simplify Offering for Consumers
ALVISO, CA — March 8, 2006 — TiVo Inc. (NASDAQ: TIVO ), the creator of and a leader in television services for digital video recorders (DVR), today announced new, simplified pricing plans that will make it easier for consumers to add TiVo to their home entertainment experience. For the first-time ever, through TiVo's direct sales channel, customers will be able to bundle together the purchase of their TiVo® 80-hour Series2® box and service at an all-in-one price, based on a one-, two-, or three-year commitment. There will be no separate price for the TiVo unit and TiVo® service. The specific bundle prices that will be available at www.tivo.com or by calling 1-877-BUY- TIVO are:
* The price for a TiVo box and a one-year service commitment is $19.95 a month or $224 prepaid
* The price for a TiVo box and a two-year service commitment is $18.95 a month or $369 prepaid
* The price for a TiVo box and a three-year service commitment is $16.95 a month or $469 prepaid
TiVo developed these new pricing plans after completing market research among new and existing TiVo subscribers and by conducting extensive testing of the pricing options with randomized group of consumers in the marketplace. The results of the research were overwhelmingly favorable to the bundling together of the TiVo unit and TiVo service. As is the case with subscribing to the TiVo service today, an early cancellation fee will apply if service is terminated prior to the end of the chosen period. In the case of prepaid subscriptions, no refund will be made upon early termination.
"Over the past several months, we have done extensive research on our pricing strategy and distribution model with a focus on finding the simplest and most efficient way to increase sales and drive penetration of the TiVo service among consumers," said Tom Rogers, CEO of TiVo. "After extensive testing and evaluation of various pricing and packaging approaches, we will launch a subscription option that combines the sale of the TiVo service together with the TiVo box. This is great for TiVo subscribers who will now have the ability to get TiVo service with no upfront hardware costs."
As part of the announcement, TiVo is also announcing an update to its service-only options, providing consumers that purchase a TiVo unit at a retail outlet with the option to pre-pay for one-, two-, or three-years of TiVo service. The product lifetime service option will be eliminated next week. With the ability to pre-pay for TiVo service, TiVo is standing by its efforts to deliver choice to its customers and continuing to spread the "TiVo, TV Your Way" message.
"We are committed to providing our customers a great value for their dollar and enhancing our ability to add subscribers through more flexible pricing options," said Mr. Rogers.
The changes to the pricing structure and service-only options will launch next week. The changes will not affect TiVo's current base of subscriptions.
TIVO ANNOUNCES NEW PRICING PLANS
New Bundled Offering, Flexible Pricing and Service Commitments Will Simplify Offering for Consumers
ALVISO, CA — March 8, 2006 — TiVo Inc. (NASDAQ: TIVO ), the creator of and a leader in television services for digital video recorders (DVR), today announced new, simplified pricing plans that will make it easier for consumers to add TiVo to their home entertainment experience. For the first-time ever, through TiVo's direct sales channel, customers will be able to bundle together the purchase of their TiVo® 80-hour Series2® box and service at an all-in-one price, based on a one-, two-, or three-year commitment. There will be no separate price for the TiVo unit and TiVo® service. The specific bundle prices that will be available at www.tivo.com or by calling 1-877-BUY- TIVO are:
* The price for a TiVo box and a one-year service commitment is $19.95 a month or $224 prepaid
* The price for a TiVo box and a two-year service commitment is $18.95 a month or $369 prepaid
* The price for a TiVo box and a three-year service commitment is $16.95 a month or $469 prepaid
TiVo developed these new pricing plans after completing market research among new and existing TiVo subscribers and by conducting extensive testing of the pricing options with randomized group of consumers in the marketplace. The results of the research were overwhelmingly favorable to the bundling together of the TiVo unit and TiVo service. As is the case with subscribing to the TiVo service today, an early cancellation fee will apply if service is terminated prior to the end of the chosen period. In the case of prepaid subscriptions, no refund will be made upon early termination.
"Over the past several months, we have done extensive research on our pricing strategy and distribution model with a focus on finding the simplest and most efficient way to increase sales and drive penetration of the TiVo service among consumers," said Tom Rogers, CEO of TiVo. "After extensive testing and evaluation of various pricing and packaging approaches, we will launch a subscription option that combines the sale of the TiVo service together with the TiVo box. This is great for TiVo subscribers who will now have the ability to get TiVo service with no upfront hardware costs."
As part of the announcement, TiVo is also announcing an update to its service-only options, providing consumers that purchase a TiVo unit at a retail outlet with the option to pre-pay for one-, two-, or three-years of TiVo service. The product lifetime service option will be eliminated next week. With the ability to pre-pay for TiVo service, TiVo is standing by its efforts to deliver choice to its customers and continuing to spread the "TiVo, TV Your Way" message.
"We are committed to providing our customers a great value for their dollar and enhancing our ability to add subscribers through more flexible pricing options," said Mr. Rogers.
The changes to the pricing structure and service-only options will launch next week. The changes will not affect TiVo's current base of subscriptions.
03-08-06, 09:20 PM
#4
DVD Talk God
Yeah. I love my Tivo to death, but if I had to pay $20/month for their service, I'd surely move onto whatever cable company's box that was out. I have DirecTivo so I pray that I can keep it another year or so.
03-08-06, 09:24 PM
#5
DVD Talk Legend
$20/month for tivo?
They're crazy, that's just way too much for a glorified VCR especially with the price of DVD recorders these days. Yes, I know the $20 / month includes the equipment, but it's still outrageous.
They're crazy, that's just way too much for a glorified VCR especially with the price of DVD recorders these days. Yes, I know the $20 / month includes the equipment, but it's still outrageous.
03-08-06, 10:49 PM
#7
DVD Talk Limited Edition
Originally Posted by Jadzia
What if you don't want to rent-to-own?
At that price, I'd say the standalone DVR market is pretty much going away, but the Series 3 has some features that could get me to switch from my beloved Replay (but not at 20 bucks a month)
03-08-06, 11:44 PM
#11
DVD Talk Hero
Well, I was going to hold off and purchase the Series3, but I'll be damned if I'm going to pay $200+/year in service fees after spending several hundred dollars on the unit itself.
They might as well shut the whole company down. They are obviously just putting off the inevitable.
They might as well shut the whole company down. They are obviously just putting off the inevitable.
03-08-06, 11:47 PM
#12
DVD Talk Gold Edition
The changes to the pricing structure and service-only options will launch next week. The changes will not affect TiVo's current base of subscriptions.
im assuming by that it means that my $12.95 isn't going to change. Am i correct?
im assuming by that it means that my $12.95 isn't going to change. Am i correct?
03-09-06, 12:15 AM
#13
DVD Talk Legend
Originally Posted by B.A.
Well, I was going to hold off and purchase the Series3, but I'll be damned if I'm going to pay $200+/year in service fees after spending several hundred dollars on the unit itself.
03-09-06, 12:18 AM
#14
DVD Talk Hero
Originally Posted by Jeremy517
Based on that article, the $200+ includes the price of the box.
03-09-06, 12:27 AM
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That was a dumb dumb DUMB move by Tivo. They just shot themselves in the foot. In fact, they may have just shot themselves in the chest. With media PC's now selling in droves and lots of good computer DVR's available, you cannot charge for a monthly service.
03-09-06, 12:29 AM
#16
DVD Talk Legend
Originally Posted by B.A.
I just don't see them handing out the Series3 w/out a substantial up-front payment. But maybe they will have to as you said to stay in business.
- The article is wrong and the box isn't included. Seems unlikely to me. I can't imagine them charging $20/month for just the service. That would be a huge rate increase
- You own the box, and there will be some different price plan after your initial commitment is up. The initial monthly charge would just help spread out the cost of the box to you. Again seems unlikely, due to the lack of mention of what happens at the end of the commitment, and the fact that that they don't mention selling the box outright.
- You're just leasing the box, and what they mean when they say "price for a box" is just your lease price. The seems most likely to me, and as you mentioned, seems like the end of TiVo. Or at the least, the end of new standalone TiVo business (and the beginning of a great market on eBay for TiVos with lifetime). The deal with Comcast would likely be the only thing that would keep the company afloat.
03-09-06, 12:48 AM
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Yeah i'm pretty confused.
Is there any article that includes if this One Year Commitment at $20 a month include the box?
If so, does the rate drop once you finally purchase the box?
Is there any article that includes if this One Year Commitment at $20 a month include the box?
If so, does the rate drop once you finally purchase the box?
03-09-06, 06:01 AM
#19
DVD Talk Legend
I would certainly pay $20/month with no upfront cost for a Series 3 TiVo given the fact it'll be a dual-tuner HD DVR.
If that's not going to be the case for their next gen consule, the timing of this is pretty weird.
If that's not going to be the case for their next gen consule, the timing of this is pretty weird.
03-09-06, 06:05 AM
#20
DVD Talk Legend
Originally Posted by edytwinky
If so, does the rate drop once you finally purchase the box?
03-09-06, 06:37 AM
#21
DVD Talk Godfather
Originally Posted by Chew
I would certainly pay $20/month with no upfront cost for a Series 3 TiVo given the fact it'll be a dual-tuner HD DVR.
If that's not going to be the case for their next gen consule, the timing of this is pretty weird.
If that's not going to be the case for their next gen consule, the timing of this is pretty weird.
So on a standard unit, about $200, I year covers the cost of the box, and you are still stuck paying $200 a year just to be able to record your shows?
I don't think so.
I was looking forward to the HD-Tivos but this is a giant flashing neon sign saying just buy a media PC for the living room.
Goodbye Tivo. You set the standard, but you will be missed. Who in their right mind would do this with the cable & satellite companies boxes only being $5 or so a month? I'd be surprised if they got any new subsribers at all.
03-09-06, 07:55 AM
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Originally Posted by edytwinky
Is there any article that includes if this One Year Commitment at $20 a month include the box?