Saving TiVo

Om Malik on how to save TiVo:

I think TiVo can be saved – actually with very little work. Here is how – TiVo should basically give away two million of these devices in next one month – hit the 5 million subscriber mark. That’s $65 million in monthly revenues (assuming everyone pays $13 subscription fees.) At those numbers the company can do $750 million in annual sales. Now since DirecTV customers are a big chunk of these customers, lets assume the revenue/annum is $600 million a year. Next cut back on marketing completely, ala Apple in lean years. Stop pushing the service – and turn TiVo into an exclusive club, a BMW among PVRs.

It worked for Mac, and could work for TiVo, but TiVo will need to find other revenue streams to make it work the way it did for Apple.

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