TiVo loses $4 million
This post was updated at 3:45 p.m PT with information from the earnings call.
TiVo on Wednesday reported a loss of $4.1 million, or 4 cents per share, for the first quarter of fiscal year 2010.
It's a letdown for TiVo, which a year ago recorded a $3.6 million profit. The Alviso, Calif.-based maker of digital video recorders had been anticipating a $6 million to $8 million loss for the quarter ended April 30.
The company's technology and service revenue was $48.5 million, down just more than 12 percent from last year's $54.4 million. But TiVo did see an uptick in revenue from the sale of DVR hardware, up from $6 million a year ago to $6.4 million during the most recent quarter.
About 37,000 more people bought subscriptions to its DVR service directly from TiVo, to bring the current total of all subscribers to 3.2 million.
CEO Tom Rogers put a positive spin on the results during Wednesday's conference call with analysts. He called it "a solid quarter" and said he believes TiVo "started fiscal (year) 2010 off on the right foot."
He stressed the company's strategy of becoming a single destination for all video entertainment, whether it's content from cable, satellite, or streaming over broadband.
Though TiVo essentially invented the DVR market, it's never been able to capture a mass audience on its own. It did manage to eke out a profit last fiscal year of $104 million, or $300,000 without counting the large sum it was awarded from its lawsuit with EchoStar last fall.
To increase its subscriber base, it has relied heavily on partnerships with companies like DirecTV, Cox Cable, and Comcast, which is beginning to roll out its TiVo service in a few markets. Recently TiVo has added more streaming-video options through partnerships with Blockbuster, Netflix, and Amazon HD.
Looking ahead to next quarter, TiVo anticipates a net loss between $6 million and $8 million.
TiVo stock was down 2.9 percent to $6.78 per share in after-market trading.
Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica. 
Sadly, its never been that way. Despite the fact that Tivo is a household name, the company itself doesn't profit from the name recognition. I think part of that is that not enough consumers actually got to own a true Tivo before owning the DVR's provided by satellite and cable companies, which, in my understanding, are inferior to true Tivo's... But if you never had a Tivo, you wouldn't know what you're missing.
So Tivo suffers from the classic brand name problem other companies have faced. Kleenex (facial tissues), Q-tips (cotton swabs), etc. We use the brand names to describe products that aren't really made by the brand name company. So the name gets co-opted without the origin company reaping the benefits.
A DVR is just equipment. A TV guide is all you need to make a DVR rock and roll. Since the Cable/Satallite operators should be giving you the TV guide as part of the service the only thing TiVo has to sell is a "better" version of what should be free.
Drop the service fee, start charging for software updates (as needed), and subsidize the TV guide information with partnerships like Netflix and Blockbuster and I think you'll get a ton more customers.
They need to charge less for the hardware, get their software spruced up and more open (I'd *love* a web interface to my season passes, or online control / streaming of my tivo!) and sink some cash into explaining why a Tivo is better than a cable DVR or a MythTV box.
[CNET editors' note: Prohibited content deleted.]
Yes you get a 'Tv Guide" but it is so much more, especially in the past couple of years.
1) 'Tv Guide' but the interface itself is what really sets TiVo apart.
2) The ability to pause, rewind, fast forward TV (all DVRs do this) Season Pass manager, etc...
3) Learns what you like and recommends other programs.
4) Streaming music and pictures from my home network.
5) Netflix and Blockbuster streaming
6) Amazon movie rental/purchase (this is the only way I watch movies at home)
7) A Bunch of games
8) Lots of media like podcasts, TiVo only videos etc.
9)TiVo to Go!!! transfer shows to my laptop and watch them anywhere (great when there is no internet)..
10 ) Compatible with Slingbox.
11) Can scheudle things online while away from home.
TiVo has changed the way I watch TV.... no way I can go back.
- by kfdodgerfan May 28, 2009 8:18 AM PDT
- When is the DirecTV HD Tivo coming out?
- Like this Reply to this comment
-
(9 Comments)