“Our aim was to double the size of the digital video recorder marker, which was about 50,000 in 2007,” Mr Warburton said. “We are on track to sell 25,000 by the end of December and are confident of reaching our 50,000 target.”

The 50,000 figure excludes DVRs sold by pay-television companies such as Foxtel, which has sold over 365,000 iQ & iQ2 DVRs since February 2005. Another pay-TV vendor, Austar United Communications reported 57,744 MyStar recorders sold by late October.

Seven says TiVo sales are running ahead of targets, due perhaps to their extensive marketing campaign. Seven spent an estimated AUD$3.5 million worth of airtime to promote TiVo during the Summer Olympics (which Seven Network aired). Since the Olympics their monthly marketing spend has been roughly AUD$200,000 between TV and print.

Overall it sounds like TiVo is doing fairly well down under.

The original agreement required Seven to pay TiVo a fee for each subscriber it signed. Under the new deal, which was finalised in April, TiVo will be paid a royalty based on how many recorders are sold here.

TiVo’s main competition in Australia will be the Foxtel iQ2 DVR, which retails for AUD$200 and carries a monthly AUD$10 subscription fee. If the AUD$700 price and no monthly fee rumors for the TiVo are true, that would mean a 50 month break-even compared to the iQ2. Which the TiVo is being pitched as a premium product it remains to be seen how it will fare in the Australian market. AFR says Foxtel has a subscriber base of 1.4 million, 350,000 of which have picked up the original iQ DVR, and 15,000 which have picked up the newer iQ2.

I guess we’ll see in a week what all of the details are with regard to pricing and features.

EDIT: The Sydney Morning Herald has also picked up the story, and they have a few more details. One thing the AFR didn’t mention, the iQ2 costs AUD$10-15 on top of the standard Foxtel subscription (Foxtel is a Pay TV service), which runs AUD$37.95 up to AUD$105.95 a month, depending on the level of service. TiVo, on the other hand, will work with the free-to-air programs so there is no additional cost. That does make quite a big different in the break-even point between the two products.

Due to the reduction in the monthly fee, Seven has had to renegotiate their deal with TiVo. That renegotiation contributed to the slip in the release date. Oddly the article also says“It is also understood Seven will not charge TiVo buyers for software upgrades for the first three years.”, which is strange since TiVo has never changed for software updates and it’d be odd for Seven to charge for them while charging a monthly fee. The original plan of using Internet telephony company Engin to handle distribution of the TiVo appears to have been dropped.

Picked up from Gizmodo Australia.