Tivo Executive Summary
TiVo is a digital video recorder that allows viewers to watch what they want, when they want to watch it, and it allows pause and instant replay functions of live TV by storing information on a hard drive. It gives they user or users to ability to create their own personal television schedule by using the regular television programs. TiVo’s features include the ability to fast-forward, ultimately skip, through commercials and also input their own viewing preferences. TiVo also has popular features such as the “season pass” which allows users to specify their favorite shows, so that all episodes were recorded automatically. One of the most popular strength of TiVo was the “thumbs up” and “thumbs down” buttons that allowed viewers to indicate how much they liked or disliked what they were watching.
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
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