$12.14
0.18 (+1.51%)
TiVo, Inc. (NASDAQ:TIVO)
CAPS Rating:
The Company is a provider of technology and services for digital video recorders.
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The Company is a provider of technology and services for digital video recorders.
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The business model is dying. DVR technology is easily replicable, and TIVO's software is not absolutely superior or uncopiable. There isn't much in terms of brand name protection, since people choose their cable based on price and service, not brand like for clothing or cars.
TIVO has to compete against Microsoft, Verizon, and AT&T. These behemoths can crush TIVO by waging a war of attrition. Even though TIVO may have won against Echostar in trial, DirecTV has introduced its own competitor, moving away from TIVO. DirecTV had been a significant MSO for TIVO.
Also, DVR technology is not the wave of the future. The wave of the future is VOD through broadband directly to your TV. Also, new televisions come with hard drives attached or compatibility with external hard drives, meaning no one will pay a monthly fee to use this service.
Finally, simply looking at their income statement and balance sheet shows a very unprofitable/unhealthy company. If their CFO remains constant from last year, they will burn their cash reserve in 2 years. Analyst EPS outlook isn't positive by then. Could simply burn out if it can't find additional financing.
TIVO sent out it's death notice with spoon feeding the media misinformation based on bad statistics and then announcing they want to make money selling the misinformation. Basically, they have a numbers jockey viewing user habits. Why? Because their box tops are wired to the internet and send data back to the mother ship. Sell that idea on the floor of Best Buy and see who buys a box top. So, the numbers jockey starts talking to media guys...actually using a small subset of a TIVO-only audience to project which commercials American viewers liked during the Super Bowl. Laughably, then went on to suggest people don't watch the 10:00 PM hour because of TIVO time shifting statistics. Who didn't see the headline coming that TIVO will begin selling their statistics? This is a miserable business move, and most likely the result of quarter after quarter of operating losses. They need revenue. One has to wonder if they'd be in business if not for the EchoStar patent infringement award.
i think you guys are both wrong. Do either of you have tivoes? Its literally the greatest thing in existance. I would compare them to another relatively new company in a new market, netflix. Its not so much that what they do is so drastically different from the rest of the market, but its the only thing they do, unlike comcast or verizon dvr's which as a result just really suck in comparison. People who have tivoes love how they can very precisely pause, rewind, and fastforward tv. Its the kind of thing where once you get a tivo, its really hard to watch tv without it. Their interface is second to none and i really don't see anyone coming up to try and challenge them because they do what they do so well. I also completely disagree with the statement that they don't have brand name recognition. They absolutely have brand name recognition, it's outstanding in fact. Everyone knows what a tivo is, even if they don't have one. Hell, the product is called a "tivo" even more than its called a "dvr", kind of like kleenex. How'd that company turn out?
I don't buy Kleenex brand "kleenexes," I buy generics, and most people do the same for DVRs. Tivo's most essential features have been replicated to some degree and this trend will likely continue. The company has faced continual challenges, from generic DVRs, to On-demand cable, to internet video. The company has too much competition to have a good chance of thriving.