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TiVo shares decline on DirecTV report


By David B. Wilkerson, MarketWatch

Last Update: 4:40 PM ET Aug. 11, 2005**


SAN FRANCISCO (MarketWatch) -- Shares of digital-video-recorder pioneer TiVo Inc. fell more than 6% Thursday following a published report in which DirecTV's CEO reiterated the company's intention to begin marketing its own DVR.


TiVo shares declined 37 cents to close at $5.62.

A Reuters report quoted DirecTV Chief Executive Chase Carey as saying the company would cease promotion of TiVo-branded DVRs in favor of technology created by News Corp. subsidiary NDS Group PLC . News Corp. owns a controlling stake in DirecTV.


DirecTV spokesman Bob Marsocci said he's "surprised" that Wall Street reacted with a TiVo sell-off Thursday, given the fact that DirecTV has made its intentions known more than once since January.


DirecTV had previously said it would begin to offer NDS DVRs in its set-top boxes later this year. Marsocci said the new boxes would ship in October.


The NDS DVR is intended to have greater functionality than TiVo's, allowing more hours of recording time, faster speed, and the ability to mark certain parts of a program for later reference.


"If someone calls up and says they want a DVR, the first one that we'll tell you about is the new DVR," he said. "But if someone says their neighbor has the DirecTV with TiVo, and can they have that one -- we'll still make it available."


The existing agreement between DirecTV and TiVo will remain valid at least into 2007, Marsocci said.


Currently, a majority of TiVo's new subscribers each quarter stem from its relationship with DirecTV.


The company took a major step toward diversifying its profile in March when it agreed with Comcast Communications to co-develop a version of the TiVo service that would be made available to most Comcast customers by mid-to-late 2006. Comcast already markets its own DVR product.
 

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This basic story (with an earlier stock quote, obviously) was posted here six hours ago at post #4462:

http://www.avsforum.com/avs-vb/showt...page=149&pp=30


(Although to be fair, your story does have some interesting DirecTV comments.

Especially the one that TiVo units will be available at least until 2007.)
 

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This is at least the third time that news has been announced. I think an investigation into who's buying puts or selling short would be in order.
 

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And since DirecTV made its first official announcement about this six months ago, it is hardly new news. But why the TiVo stock would be continuing to take the (from this news), seems very odd.
 

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Quote:
Originally Posted by fredfa
(Although to be fair, your story does have some interesting DirecTV comments.

Especially the one that TiVo units will be available at least until 2007.)
That's so they can have something to swap when customers start complaining the new product is a POS. :D
 

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If I were TiVo, I'd say good riddance and adios, Comcast here I come
 

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It's only a matter of time before all tivos are obsolete. It's too easy to replicate. It's not like people care much about who makes their dvd player or vcr anymore. D* is doing the smart thing.
 

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Quote:
Originally Posted by sandiegojoe
It's only a matter of time before all tivos are obsolete. It's too easy to replicate. It's not like people care much about who makes their dvd player or vcr anymore. D* is doing the smart thing.
That explains why all the Comcast customers are so happy with their Moto boxes, and why Comcast has contracted with Tivo to try to fix them. :D
 

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Quote:
Originally Posted by sandiegojoe
It's only a matter of time before all tivos are obsolete. It's too easy to replicate. It's not like people care much about who makes their dvd player or vcr anymore. D* is doing the smart thing.
the value is definitely not in the hardware (which I agree is easily commoditized), but the TIVO UI is much better (IMHO) than what I've seen on other DVRs. I'm using the comcast DVR with the Microsoft s/w and it leaves a lot to be desired - navigating the UI is an excercise in frustration... :p
 

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Good point Ken H, except for one thing: as I understand it, DirecTV has been paying about three times what Comcast has agreed to pay.
 

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Quote:
Originally Posted by fredfa
Good point Ken H, except for one thing: as I understand it, DirecTV has been paying about three times what Comcast has agreed to pay.
But it will be an optional add on for the Comcast DVR as I understand it, so I can see why they'd pay less than DirecTV, where it was their only available product for years.
 

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Quote:
Originally Posted by RZ
The NDS DVR is intended to have greater functionality than TiVo's, allowing more hours of recording time, faster speed, and the ability to mark certain parts of a program for later reference.
Which finally explains why DirecTV has refused to allow TiVo to add the new TiVo-developed features to DirecTV-TiVo combination boxes. Now they can claim better functionality. I'd like to see them beat the HMO or TiVo-To-Go features available on "real" TiVo boxes :rolleyes:
 

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I have had TiVos since 2000, and an HD TiVo since May of last year. I love them.


I never had a problem, but as I recall a high percentage of the first HD TiVo boxes had to be returned.


So before bashing the new MPEG4 NDS boxes, why don't we wait to see how and if they work?


If they don't, we'll have plenty of ammunition. All we have now is supposition and fear of the unknown.
 

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One complaint about Tivo is how they seeming refuse to make programming changes a background activity. I can see why when you add a program or Season Pass that you need to wait to make decisions on conflicts. But why you need to wait for it to think when you delete something is beyond me.


As to the new device, doesn't the company have a DVR in Europe or England that is pretty lowly regarded? If so, I wouldn't hold my breath for this to be a great device.
 

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A few more details ---

DirecTV Plans to Stop Marketing TiVo DVRs


By Alex Pham Los Angeles Times Staff Writer August 12, 2005


DirecTV Group Inc. said it would stop marketing TiVo Inc.'s digital video recorders in October, when the satellite television company plans to introduce its own service.


"The product we will market is our product," DirecTV Chief Executive Chase Carey said Wednesday at the Reuters Telecommunications, Cable and Satellite Summit in New York.


El Segundo-based DirecTV announced in January that it would begin selling its own recorder this year alongside TiVo. But Carey's comments marked the first time the company stated that it would cease promoting TiVo, which enables users to record TV shows and pause live television.


"Our marketing and sales efforts will focus on our new DVR," DirecTV spokesman Bob Marsocci said. The recorder is being developed by NDS Group, a British unit of News Corp., which has a 34% stake in DirecTV.


DirecTV, under an eight-year contract scheduled to end in February 2007, is still required to sell TiVo subscriptions to its customers but will do so only when customers specifically request TiVo, Marsocci said.


Executives at TiVo declined to comment.


TiVo shares fell 37 cents, or 6.2%, to $5.62.


TiVo had enrolled 2.1 million of its 3.3 million subscribers from DirecTV as of April 30. Although DirecTV's decision is not expected to affect current TiVo subscribers, analysts say the move will significantly slow the number of new customers for TiVo. In the three months ended April 30, 77% of TiVo's new subscribers came from DirecTV.


"That figure is likely to go to zero," said Alan Bezoza, analyst with investment firm Friedman, Billings, Ramsey & Co.


Alviso, Calif.-based TiVo, whose troubled relationship with DirecTV has been widely known, has been seeking other partners. In March, TiVo signed a deal with Comcast Corp. to offer service to the cable company's 21.5 million customers starting next year. And this month, the National Cable Television Cooperative, representing more than 1,000 independent cable companies, agreed to offer TiVo to its 14 million subscribers.
 

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Quote:
Originally Posted by fredfa
Good point Ken H, except for one thing: as I understand it, DirecTV has been paying about three times what Comcast has agreed to pay.


holy crap- I thought D* was down to around a buck a box with the volume they are at. So Comcast is paying 35-40 cents?
 

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i just quickly scanned this thread and didn't see it but i saw a quote someplace in one of the stories from Carey where he said somehting like 'It's up to Tivo to make a product our subs want to buy'.


I found that a positive that if Tivo has a better mousetrap they will use it. The sticking point i guess is if Tivo wants to spend the money to develop software for Directv that Directv has essentially said they wont pay for. I guess it TiVo decides they need critical mass or it's worth the buck a month then they will be bothered if not i guess Tivo is bye bye.


THe plus side is HMO and all appears already to be in the Directv software but Tivo doesn't want to GIVE it to them gratus. So at some point Tivo could perhaps just view it as a sunk cost and give it to them. But then they would have to be afriad that no one would ever pay for upgrades again.


OR maybe at some point Directv allows Tivo to sell directly to their subs for a cut. I'm thinking the UNCENTRIC HMC will make me happy but if it doesn't and TiVo has features thatthey dont at some point, I would weigh the options and think about paying more to TiVo.


I guess time will tell.
 

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Quote:
Originally Posted by michaelk
iTHe plus side is HMO and all appears already to be in the Directv software but Tivo doesn't want to GIVE it to them gratus. So at some point Tivo could perhaps just view it as a sunk cost and give it to them. But then they would have to be afriad that no one would ever pay for upgrades again..
I believe it's DirecTV that is keeping it from being activated.
 

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Quote:
Originally Posted by fredfa
A few more details ---

DirecTV Plans to Stop Marketing TiVo DVRs


By Alex Pham Los Angeles Times Staff Writer August 12, 2005


DirecTV Group Inc. said it would stop marketing TiVo Inc.'s digital video recorders in October, when the satellite television company plans to introduce its own service.
Hmm...the prices for the HD-TiVo should fall through the floor by then...


I wonder if this means they'll be taken off the market or will they continue to sell at ever reducing prices until the 2007 contract ending date...?
 

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Quote:
Originally Posted by Karyk
I believe it's DirecTV that is keeping it from being activated.
That's what we've always heard from TiVo. Of course, it could mean that DirecTV is keeping it from being activated by not paying TiVo for it. That would make TiVo's statement true as well as provide a better explanation for why DirecTV hasn't rolled it out.


Of course, DirecTV, as always, refuses to tell their customers anything, so it's all speculation.
 
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