A big problem TiVo faced was getting people to “adopt” their product. With many features and functions, it was not as easy to explain TiVo as it was to experience, making it difficult to convince prospective customers. Due to the high 30-hour recording capacity of TiVo, it was more expensive than most televisions sets and over double the price of most satellite dishes. How could historical TV viewer habits change so dramatically with the introduction of one new product? TiVo was in a new category with no real reference points, which discouraged and delayed consumers making their purchase decision.
With the ability to give clients the opportunity to skip advertisements, TiVo faced a significant threat to the advertisement industry, which is a huge aspect of the whole TV industry as it is very dependent on advertising revenues. Television Networks wanted TiVo to complement their business instead of competing against it. They want to use TiVO to improve advertising revenues. TiVo also had the ability of motorizing the viewer rates of their programs so they could improve their strategy to increase markets share and gain competitive advantage. Advertisers wanted TiVo to