Tivo

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14 months into launch:
 42000 subscribers  14000 new subscribers per quarter  102 million TV watching US households  0.4% penetration  Distribution not an issue  72% customer satisfaction

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Functions of DVR difficult to communicate
 Provocative “Network executive” ad  Other optional creative routes considered

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Barriers for trial:
    

Lack of Awareness Lack of Awareness of function/features Changing Habits in a most ritualistic TV viewing element of life Privacy Preconceived Reservations

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Communication
 PR & Website (Press unclear on new category; mixed reviews)  A very limited mass media campaign  TiVo produced video magazine & on screen TV guide

What you want to Show to What you want to See

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499$ +9$ p.m./99$ per year/199$ lifetime

Pause, Rewind, Fast Forward at Fixed cost Plus plus (Recording) came at recurring service charge Also recommendations of shows
  

Thumbs up / down: viewers Better programming suggestions Season pass

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Number of hours of recording depends on
 Hard drive capacity  Recording quality

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Distribution
 Sony / Philips (Retail distribution and in-store communication)  Best Buy  Circuit City and Sears

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50 billion $ TV advertising industry 2.4 TV sets per HH 7.4 hours a day per HH 4.3 hours a day per adult Larger sets Home audio systems
 In 1999, 20 million owned 25+

Buying Electronic Equipment
TV Advertising

30%

Store Staff

40%

inch a surround audio system  300% more than 1995

Publications & Advtg

56%

Friends/Relatives

71%

Work Neglect

Mood swings

Bait for Kids homework

Housework avoidance

“Widowed” during the Fall TV season

Most popular Shows

Networks

25 million viewers

Advertisers

52 billion $ tv ads

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62% watched more TV with the service TV became primary source of entertainment post ownership (31% vs. 16%) Lesser channel surfing (minus 31%) 70%... [continues]

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