Thoughts on the new pricing plans

The new plans are for an 80 hour Series2. I wonder if they’re going to standardize on the 80-hour only, or if you could get a 40 hour for less, or a 140 for more?

These new prices encourage two things:
- Signing up for longer periods
- Pre-paying instead of paying monthly

If you pre-pay, you save a bit over paying monthly. The longer you commit to, the less it costs per month. Prepay for a year and save $15.40, two years and save $85.80, three years and save $141.20 compared to the monthly fees. From past conference calls, fewer than 20% of TiVo subscribers opted for lifetime. And that was on a downward trend, especially since they introduced multi-unit discounts. So this isn’t going to be a big deal for the overwhelming majority of users. And they did test pricing like this last fall, with a great deal of success. One thing that isn’t clear, yet, is if you can upgrade. Say you activate with the one-year plan, decide you really like it, and what to upgrade to the three-year plan. I’d think TiVo would want to encourage that kind of thing, locking users in, but we’ll see.

I am sorry to see it go away myself, since I’d prefer to pay once and never again – and have the equity in the box for resale. But I can understand that the demand isn’t sufficient, and the old lifetime pricing was too low for TiVo. Hey, TiVo, how about $549-$599 for the box and lifetime? :-)

Thomas Hawk also has a summary of the conference call.

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  • klia

    Sorry, I’m still confused. Does their new pricing have any effect on those of us who already have TiVo boxes, or will we continue to pay what we’ve been paying each month?

  • megazone

    It does not effect current users.

  • jccohen

    If the pricing was too low, raise it.

    But even if the demand is low, why take an option like that away from those who DO want it?

  • klia

    Thanks. I thought so, but wanted to make sure.

  • megazone

    It probably simplifies the book keeping and improves their long term revenue from units in service for an extended period. There are countless possible pricing options they *could* offer, but too many options is confusing for buyers and makes the book keeping messier. So you pare it down to just the core options you believe the majority of the market will go for.

  • krellis

    Well, the 40 hour units aren’t available direct from TiVo at the moment. In fact, the only models listed on their web site at the moment are the 80 hour S2 SA, and the 40 hour Humax DVD Recorder. Oh, and they have factory renewed 40 hour units free after instant savings, if you go to the “Web Specials” section rather than the “TiVo Boxes” section. The fact that they don’t have the 40 hour units indicates to me that they might be phasing them out, or, at least, not planning on providing them except via retail outlets.