Tivo Case Analysis 2007
NAME: NGUYEN TAT DAT
SUBJECT: BUS 632
TIVO – CASE STUDY 1. Is TiVo a disruptive or a sustaining technology
Base on the fact coming from the article, TiVo is a disruptive technology * TiVo did not seek to become a media portal or a content aggregator. Instead, it would act primarily as a “facilitator” to third party content distributors. At the core of these offerings was TiVoCast, a feature that let users access video contents feeds through main TiVo menu * TiVo push into broadband content distribution. TiVo could deliver such content only to users who linked their TiVo devices to a broadband connection. In mid-2007, about 650,000 users fell into that category, although an increasing percentage of new subscribers were connecting to TiVo via broadband (usually through a wireless connection). Among eligible customers, usage of broadband features remained relatively low. In addition, TiVo could offer broadband content only to its retail customers. Mass distribution partners, according to TiVo leaders, did not yet have the ability to transmit TiVo-controlled content through their delivery networks. * TiVo understood the challenge of pursing opportunities in so many fields, each with its own business model. Nonetheless, the vision required TiVo to sustain operation on all of these fronts at least until the company could clarify which of its bets were right ones. 2. What was TiVo’s strategy in the initial years of it operation?
TiVo’s goal is to change the way consumers watch television, broadband video, and advertising and to generate revenues through the deployment of its entertainment services and technology to television viewing households worldwide. The key elements of TiVo strategy initial years of its operation are: * Sales and distribution: Stand-Alone sales and Mass distribution * Diversify Sources of Revenue: As TiVo’s subscription base is large, it can offer interactive advertising capabilities to programmers and
SUBJECT: BUS 632
TIVO – CASE STUDY 1. Is TiVo a disruptive or a sustaining technology
Base on the fact coming from the article, TiVo is a disruptive technology * TiVo did not seek to become a media portal or a content aggregator. Instead, it would act primarily as a “facilitator” to third party content distributors. At the core of these offerings was TiVoCast, a feature that let users access video contents feeds through main TiVo menu * TiVo push into broadband content distribution. TiVo could deliver such content only to users who linked their TiVo devices to a broadband connection. In mid-2007, about 650,000 users fell into that category, although an increasing percentage of new subscribers were connecting to TiVo via broadband (usually through a wireless connection). Among eligible customers, usage of broadband features remained relatively low. In addition, TiVo could offer broadband content only to its retail customers. Mass distribution partners, according to TiVo leaders, did not yet have the ability to transmit TiVo-controlled content through their delivery networks. * TiVo understood the challenge of pursing opportunities in so many fields, each with its own business model. Nonetheless, the vision required TiVo to sustain operation on all of these fronts at least until the company could clarify which of its bets were right ones. 2. What was TiVo’s strategy in the initial years of it operation?
TiVo’s goal is to change the way consumers watch television, broadband video, and advertising and to generate revenues through the deployment of its entertainment services and technology to television viewing households worldwide. The key elements of TiVo strategy initial years of its operation are: * Sales and distribution: Stand-Alone sales and Mass distribution * Diversify Sources of Revenue: As TiVo’s subscription base is large, it can offer interactive advertising capabilities to programmers and