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I read this (in essence) from this month's issue of Business 2.0 (mag) where it said:


"... coalition of entertainment companies sued Tivo competitor SonicBlue into bankruptcy."


Hollywood is afraid their broadcasts will become similar to what happened with the music industry with file trading over the internet.


What do you think of that? And why hasn't this same fate befallen Tivo?
 

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Quote:
Originally posted by ablang


And why hasn't this same fate befallen Tivo?
Because TIVO doesn't have built-in internet show sharing.
 

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Not to be rude, but this isn't new information, is it? I mean, we all know that TiVo wasn't sued because they don't have the two features that SB was sued over: Commercial Advance and File Sharing. Hollywood was afraid of intellectual property being shared, similar to Napster? Well... of course. That's what it was all about.
 

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Let's get to the point. Hollywood doesn't want to lose any money--no one wants to lose money. Anytime something takes away any revenue people fight. Everyone wants to protect what they have--even if what they have is a revenue stream. Hollywood isn't any different than anyone else. We all will fight for what we have regardless of what is right or wrong. In fact, what is right or wrong (to each individual) depends on what you want to maintain.


What's not "fair" is that the legal system can be used to punish those who don't have enough money to fight back. Of course, the only solution is for lawyers to work for free, except that eventually no one smart would study law then. This is the system we have today, and until money is worthless and people do things out of the goodness of their own hearts we must accept it as is.


Cheers
 

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Either that, or there are so many lawyers that they outnumber paying clients. Apparently, America seems to be rapidly approaching that situation. Until today, I didn't think there could be an upside to that.
 

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Don't forget the bath they took on their HUGE investment in United Microelectronics Corp. (UMC). Not only that, but their agreements prevented them from selling the shares all at once when things started going south, so they had to hold on to most of them until they were useless.


If you look at the history and the financial statements over the past three years, it clearly wasn't a result of just the lawsuits. They were just a contributing factor.


Heck just look at some of the issues with the old CEO and the money they ended up paying him... I'm amazed they lived long enough to add CA and show sharing, so they COULD be sued over them with the way things were going.
 

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Quote:
Originally posted by mibsy
Heck just look at some of the issues with the old CEO and the money they ended up paying him...
At least he had the guts to tell the board members to pay back the "loans" they gave themselves. Of course they fired him for it.


Until the mutual fund companies start act like the owners they are and reign in the boards, we (investors) are screwed.


Robert
 

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I think it might have had something to do with pricing themselves out of the market. They make some great and some unique items, but at mind-boggling SRP's. I'm a big fan of Replay and I think they've got the most innovative features and most well-written PVR interface going, but all current SB products (now D&M, I guess) are really pricey. Plus, the bit-bucket PVR's have vastly superior PQ.
 

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The overwhelming evidence from SonicBlue's own quarterly and annual reports is that the legal fees associated with lawsuit *not of their choosing* were but a small factor in the company's financial failure.
 

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And as to the, "why hasn't Tivo......"


Tivo is a larger company with greater investment. That being said, Tivo is bleeding red ink. By the end of the year, Tivo will be looking for a D & M or some kind of new deal.
 

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The answer is plain and simple. SB was a poorly managed company. They had a winning product on their hands and they blew it. They never gave Replay the marketing it needed, and they never made the deals necessary to get Replay into more homes.
 
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