TiVo tries rebate to lure subscribers

TiVo will drop the price of its low-end digital video recorder to $99, the company said Monday, as part of a plan to rapidly increase subscribers to its service.

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  • davef3138

    What is the actual cost of the hardware to Tivo? This seems risky…

  • megazone

    IIRC it is a couple of hundred dollars all told for the 40 hour units for manufacturing, warehousing, etc. They’re using the cell phone model – they sell the HW at a loss and require a service subscription.

    They’re also planning to offer PPV video over broadband, etc. And they sell advertising, etc. The more boxes they have in the field the more revenue they’ll get from add-on services, the more valuable their userbase is to advertisers, etc.

    And they’re trying to get a strong foothold before cable box DVRs grab too much market, and also to reduce their reliance on DirecTV since that is looking a bit shaky.