In addition to focusing on small- and medium-size U.S. operators, TiVo will seek to expand distribution in Western Europe, Rogers said. But TiVo has parted with one potential partner in Telenor’s Canal Digital direct-to-home satellite service in Scandinavia, Rogers said. TiVo signed an agreement with Canal Digital in late 2010, but the company has undergone a management shakeup, including the departure of CEO Tone Krohn Clausen, and is said to have been up for sale.

“They had a big strategic process they were going through in selling the company and we decided pouring resources into a company that might be selling itself near term might not be the smartest thing,” Rogers said. “It’s not clear what they are doing and for the kind of shoulder that it takes roll out what we do, we knew that it would not be the best circumstances.”

So we finally have an explanation of what happened with that deal. It’s dead, Jim. Well, at least for now. It sounds like the door is still open if Canal Digital sorts their issues out and is still interested, but TiVo doesn’t want to get involved for now.

You might have noticed the first sentence in the quoted material, about small- and medium-sized US operators. That’s actually the main gist of the CED article. TiVo is seeing most of their traction in the US come from those operators, and not the big boys. So they aren’t putting a lot of energy into pursuing ‘Comcast-size’ deals. While TiVo’s deal with Comcast is significant, it is clear that Comcast’s focus is on their own in-house developed service, X1. While it seems that Comcast will fulfill their end of the agreement and continue to expand coverage of TiVo support for XFINITY VOD, TiVo is really a secondary offering for them. Their primary push is going to be X1, and understandably so.

Five of the largest MVPDs in TiVo-served territories – Comcast, British Sky Broadcasting, DirecTV, Dish Network and Time Warner Cable – are working on DVR strategies in-house and are unlikely to ever adopt TiVo’s software as their primary platform. I’d also add Verizon FiOS and AT&T U-Verse to that list. While TiVo may be able to collect licensing revenue for their patents from these providers, there’s little chance they’ll contribute directly to subscriber numbers. But the small- and medium-size MSOs don’t have the resources to develop their own DVRs, so they need third party vendors to fill the need – which is where TiVo comes in. They’ve already had success in the US with MSOs such as RCN, Suddenlink, Grande Communications, and more.

Of course, they have landed one major MSO as well – Charter Communications. But the deal seems to be stuck in neutral. Charter began deploying TiVo in Fort Worth, TX last November and at the time planned a“full production launch enterprise wide in the first half of 2012.” However, in February of this year they announced they they were pushing the schedule out, without providing any new time frame.

Since then we haven’t really heard much, and Charter’s TiVo deployment remains limited to Dallas & Ft. Worth, TX. Rogers stated that TiVo is “working closely” with Charter to expand their deployment into new territories. There has been some speculation, which I also heard going around The Cable Show, that Charter might be one of the early customers for the new Pace XG1 running the TiVo software. And that could account for the hold up, waiting for the XG1 to be available, but that’s just a rumor and I don’t know that I’d put much stock in it.

Check out the Consumer Electronics Daily article for yourself.

I’m not really a big fan of PayPal myself, I only use it when I have to, but there is no denying they’re the 800 pound gorilla in the online payments arena. PayPal is a name known and trusted by most consumers, a strong brand accepted by a multitude of merchants. Like them or not, there really isn’t a better payments processor for TiVo to partner with. Someone like Amazon Payments or Google Wallet just wouldn’t give them the scope of PayPal. And there certainly seems to be a lot of potential, given the data shared by PayPal:

According to a survey conducted by PayPal in October 2011, half of TV subscribers (49%) show an interest in purchasing goods and services linked to the content they’re watching on TV, either directly from their television through their remote control, or on a companion device (smartphone or tablet). In addition, nearly 30% of those same TV subscribers said they would use PayPal to make those purchases. In fact, 89% of respondents knew about PayPal as an online payment service with 61% of them having used it in the last 12 months. Furthermore, according to research done by Nielsen, consumers who watch traditional television are engaged approximately 5.1 hours a day, whereas consumers who surf the Internet are engaged less than an hour a day.

TiVo and their agency partners will be working to bring PayPal-enabled ads to consumers in time for the fall 2012 TV season. It sounds like purchasing capabilities will be available to advertisers across TiVo’s ad placement offerings – Interactive Tags, Showcases, etc. I think that’s a good first step, but I think the real potential is integration with shopping channels. As well as the possibility of enhanced TV. How about watching a cooking show and being able to call up an onscreen display to order the host’s cookbook or their branded products? Or watching a fashion-based program and being able to order the clothing seen on the show? It’ll also be interesting to see if the payment system is part of the new SDK TiVo is preparing, to allow purchases via third party apps.

PayPal is also looking to expand this beyond TiVo, as they stated in their blog they’re also working with Comcast:

We’re excited to announce that we’re collaborating with industry leader Comcast Cable to explore opportunities that include enabling consumers to make purchases or donations related to the content they’re watching on television either directly through their TV using the remote control, or on a companion device such as a smartphone or tablet. We are also exploring opportunities for enabling consumers to accept coupons directly into their PayPal online wallet during television advertisements.

Though it sounds like their plans with Comcast are much less concrete than what was announced with TiVo today.

There is one thing about this announcement I could really do without – the term ‘t-commerce’. Yes, a ‘clever’ play on e-commerce and TV. Oh well, marketing, what can you do?

The press release is below:

TIVO TO INTEGRATE PAYPAL ENABLING SIMPLE SHOPPING ON TV AND STRENGTHENING ITS INTERACTIVE ADVERTISING SOLUTION

Will allow users to easily purchase featured products through a few clicks of the remote control improving advertisers’ ability to reach consumers in today’s fragmented TV viewing world

SAN FRANCISCO, CA – June 12, 2012 — TiVo Inc.(NASDAQ: TIVO), a leader in advanced television services and advertising solutions, and PayPal announced they have teamed up to provide TiVo users with the ability to purchase products featured in interactive advertisements on the TiVo user interface through PayPal, the faster, safer way to pay. This integration creates a new opportunity for advertisers and brands to connect with TiVo users and to turn their 30-second spots andinteractive TiVo ad placements into actionable purchasing opportunities through a one-time account link.

“In today’s fragmented TV viewing world it is harder than ever before for advertisers to reach their audiences, and it’s important to find creative ways to get in front of viewers,” said Tara Maitra Senior Vice President, General Manager, Content and Media Sales, TiVo Inc. “TiVo’s interactive ads allow advertisers to grab the attention of viewers in unobtrusive ways and on the viewer’s terms. By teaming with PayPal consumers will be able to instantly purchase products with just a few clicks of the remote after an easy, one-time account setup. PayPal’s expertise in online payments, customer service, and working directly with merchants and sellers makes the entire payment process easy and trustworthy and will create a valuable experience for TiVo users and advertisers.”

Scott Dunlap, Vice President of Emerging Opportunities and New Ventures for PayPal said, “At PayPal we have been redefining commerce from online to mobile to offline and we see television as the newest channel in commerce. Teaming up with TiVo will help us connect merchants and consumers via the TV set in the fastest and safest way possible. We are excited about the prospect of delivering a more complete and seamless couch commerce experience.”
TiVo’s other interactive advertising solutions are currently being used by various leading brands in a host of industries as they allow advertisers to target consumers in a time-shifted world without unwelcomed interruption and offer them the option of exploring products that interest them.

TiVo will be working with its advertisers and agency partners to develop PayPal-enabled TiVo ads and Showcase campaigns beginning with the fall 2012 television season. This solution will also be available to TiVo’s MSO customers such as RCN, Suddenlink and more. Products purchased through PayPal will be charged to the TiVo user’s PayPal account through a secure transaction and shipped to the address the user has registered with PayPal for deliveries. Orders will be fulfilled either by the advertiser or a trusted merchant that accepts PayPal for payment.

TiVo and PayPal unveiled news of this new offering during the TV of Tomorrow Show 2012 in San Francisco. To learn more about TiVo’s interactive ad opportunities visit www.tivo.com/advertising. For more information about PayPal and t-commerce visit the PayPal Blog.

“TiVo Premiere has always offered the best of XFINITY TV channels with the most popular web services, and we are excited to now integrate the XFINITY On Demand library for Boston subscribers, delivering a true one-stop shop for at-home entertainment,” said Doug Bieter, Vice President of Retail Sales for TiVo, Inc. “We are pleased that TiVo Premiere users in the Boston area will have an opportunity to experience this great XFINITY On Demand content and we look forward to additional markets in the near future.”

TiVo states it is available in the ‘greater Boston area’, so it should cover a fairly large geographic area. The TiVo website has a zip code look up to determine if your area has service. I just checked my old Waltham, MA zip code, 02453, and the site reports that service is available. (These days I’m in Worcester, MA, 01606, which is Charter territory. So no XFINITY On Demand for me.)

There is a little bit of bad news though. If you’re one of the few users still clinging to the old ‘soft-TiVo’ (Comcast DVR with TiVo) that Comcast offered way back in 2008 in the area, it is time to give it up and buy a real TiVo. For those who don’t remember, this was a special software image for Comcast’s standard Motorola DVR hardware that gave it the TiVo UI. But it never worked very well as the hardware is under powered and you had the HW running the base OS, with a Java interpreter on top of that, which then ran the TiVo software. It was a great idea in concept, but it never worked well in reality. So I don’t think this is a big loss, and the retail TiVo Premiere unit is far more powerful and feature-rich than those old units.

Now that they’re launching On Demand support for retail TiVo Premiere units, Comcast is discontinuing support for the soft-TiVo units on or around August 1, 2012. So you have until then to pick up a TiVo Premiere unit if you want to continue to have TiVo in your home. Before you run out and buy one at retail – TiVo is offering you one for free! See tivo.com/bostonoffer for details. They’re offering a 320GB TiVo Premiere for free with a monthly rate discounted to $12.95 from the usual $14.99, with a one year commitment. Or product lifetime service is $499.99. This offer is only for users who still have the Comcast DVR with TiVo.

If you’d rather have the 500GB TiVo Premiere, the 1TB TiVo Premiere XL, or the 2TB, four tuner TiVo Premiere XL4 they’re offering $100 off on those. And if you want multiple units they’re offering factory refurbished units for $49.99. (Personally I’d just get the XL4 and wait for the IP STB due later this year for multi-room functionality.) Again, these deals are only for customers who currently have the old Comcast DVR with TiVo and who are looking to switch before their service is turned off on or around August 1st.

If you’re not a Comcast DVR with TiVo users, and you don’t yet have a TiVo Premiere with which to take advantage of this new support, there is a sale on the TiVo Premiere XL and TiVo Premiere Elite on – but it ends today. $50 off a factory-renewed Premiere XL or a new Premiere Elite – $149.99 and $349.99, respectively. And yes, Premiere Elite, not Premiere XL4 – they’re getting rid of the remaining pre-name-change stock, I asked. Same hardware, different badge on the front. Amazon has the 320GB Premiere for $89.99, the 500GB Premiere for $109.75, the Premiere XL for $203.24 (did they miss the memo about list dropping to $199.99?), and the Premiere XL4 for $342.10.

TiVo Premiere subscribers in additional markets across the country are expected to have access to the XFINITY On Demand library in the coming months. Visit www.tivo.com/comcast to learn more or to sign up for notifications when XFINITY On Demand becomes available on TiVo Premiere in additional areas. Boston is the second Comcast service area to receive XFINITY On Demand support, following the SF Bay Area.

Which area will be third? I think Chicago may have a shot. Why? Back in 2008 Chicago looked set to be the next market for the soft-TiVo, after Boston, but the roll out stopped before it launched there. And Chicago is one of two cities where Comcast launched tru2way support as a trial with TV manufacturers, before that effort fizzled as well. (The other city was Denver.) This means they’ve probably already done a lot of work upgrading their head ends there, and they are likely in a good position to take the upgrade for the new service. Plus Chicago is a large market, apparently 2.3 million cable households, so it would have a potential for a large return.

But that’s all speculation of course. Only Comcast knows where they’ll launch the service next.

Yeah Boston! MT @ stevegarfield Breaking: Available next week for Boston area Comcast @TiVo customers, XFINITY VOD bit.ly/JEaxLz

— Steve Wymer (@stevewymer) May 24, 2012

For those who don’t know, Steve is TiVo’s Head of Corporate Communications. So this is an ‘official’ source who would know. I suspect Comcast didn’t announce this during The Cable Show because they wanted to keep the attention focused on their X1 product announcements.

Thanks to Brennok for the tip.

EDIT: I originally said ‘Monday’ since Brennok had used that in his comment and it wedged in my brain and when I read Steve’s ‘next week’ I think I mentally filled in ‘next Monday’. I replaced ‘Monday’ with ‘next week’ throughout the post to better reflect what Steve actually said.

This actually isn’t a surprise, as I’ve posted a couple of times, a while back Comcast made the comment that New England was high on their list of territories to follow the SF Bay. Why? Well, to quote myself:

New England is where Comcast launched the old ‘soft-TiVo’ project. The software-only Java-based TiVo interface that was downloaded to run on their standard Motorola DVR hardware. Despite several years of effort it just never worked well. The HW was under-powered, and with the TiVo interface running in Java on a virtual machine running on top of the native OS, it wasn’t a great performer. And Comcast never seemed to iron out the issues with the head end that was supposed to allow them to dynamically push the TiVo software to units in the field. While the effort was abandoned when Comcast switched focus to XFINITY support for retail units, the existing deployment of soft-TiVo units are still supported. Comcast is looking to finally phase them out by getting the users to migrate to a TiVo Premiere once they can do so without losing their On Demand. So they have an incentive to prioritize New England.

So they still have a number of those old units in the field that they’d love to stop supporting, and I bet many of the customers would love the added benefits of having a real TiVo to boot. And perhaps Comcast will be able to recycle some of the work they did on the head end for that project to support the new roll out. In any case, TiVo confirmed today via email that Boston is the next market that will see this roll out. They didn’t provide a specific time frame, saying only that Boston would see this ‘soon’.

As always, you can sign up to be notified when this is available in your area at tivo.com/comcast

Remember, Comcast controls when this is rolled out to a new area, not TiVo. TiVo has delivered their part, the software integration on the unit. The other piece is the head end upgrades to support the service, and that’s what Comcast needs to do for each service area where this is deployed. That’s why it wasn’t flipped on for everyone at once, and why it is getting a region by region roll out. So don’t bother TiVo with questions about when it will come to your area. Odds are they don’t know, and even if they do know they can’t speak for Comcast until Comcast is willing to announce their plans. If you need to pester anyone, pester Comcast.

It has been a long time coming, but TiVo Premiere using Comcast customers in the San Francisco Bay Area now have access to XFINITY On Demand content. Well, at least some of them. It started rolling out on April 9th and should be rolled out across Comcast’s SF Bay service area by the end of the month. So if you’re a Comcast customer in the SF Bay Area and you don’t have XFINITY On Demand on your TiVo Premiere yet – give it some more time. You can check for current availability in your zip code, and sign up for notification of future availability, at tivo.com/comcast.

As for Comcast customers outside of the SF Bay Area – you’ll just have to keep waiting. Comcast hasn’t announced any definite plans or schedules for expansion of XFINITY On Demand support for TiVo to other service areas. And this is 100% in their hands. TiVo has delivered their end, but Comcast needs to update their head-end systems in each service area before they can enable this. The only indication we’ve had is that New England is high up on the list to get this after the SF Bay roll out is complete.

New England is where Comcast launched the old ‘soft-TiVo’ project. The software-only Java-based TiVo interface that was downloaded to run on their standard Motorola DVR hardware. Despite several years of effort it just never worked well. The HW was under-powered, and with the TiVo interface running in Java on a virtual machine running on top of the native OS, it wasn’t a great performer. And Comcast never seemed to iron out the issues with the head end that was supposed to allow them to dynamically push the TiVo software to units in the field. While the effort was abandoned when Comcast switched focus to XFINITY support for retail units, the existing deployment of soft-TiVo units are still supported. Comcast is looking to finally phase them out by getting the users to migrate to a TiVo Premiere once they can do so without losing their On Demand. So they have an incentive to prioritize New England.

Beyond that all we’ve heard is that other service areas will see support “in the coming months”. You’d have to ask Comcast for more details – not that they’re talking just yet.

Joshua covers a lot of interesting territory, with the primary focus being on TiVo’s app support. TiVo is focused on providing a consistent app environment across their platforms, be it retail or provider units. Today the focus on on the Adobe Air/Flash environment which is used on the retail and MSO Premiere units in the US, and the Virgin Media and ONO boxes in Europe. There is still support for the Java environment used on earlier platforms, as in HME, and TiVo is looking at other environments.

For developers seeking to get their app onto TiVo they work directly with TiVo for the retail market, but need to work with the providers for their TiVo units. TiVo can help facilitate those conversations for developers seeking to get their apps on multiple platforms, but it is up to the individual operators to approve an app for their customers.

He also talked a bit about working with different size operators, from giants like Comcast and Charter with millions of users, down to small MSOs with 150,000 subscribers. Definitely worth watching, IMHO. Now if we could just have the SDK released and actually start seeing more apps!

Via Broadband TV News

Adjusting for Comcast’s new numbers the top five MSOs, Cablevision, Charter Communications, Comcast Corporation, Cox Communications, and Time Warner Cable, collectively deployed 557,296 CableCARDs. Extending that to the top ten MSOs gives a small bump to 595,296, which shows how many customers are concentrated into the largest MSOs. By way of comparison, these same ten MSOs have installed more thsn 32,000,000 CableCARDs in MSO provided STBs. And that is the best evidence of just how badly CableCARD has flopped in the retail market.

At this point TiVo is effectively the only retail CableCARD vendor left! There are a handful of PC CableCARD tuner products, but the total sales are negligible. CableCARD enabled TVs are all but gone from the market. And now that Moxi is gone I think TiVo is the last retail CableCARD DVR. Personally I think this demonstrates why we need AllVid to create a truly competitive open market.

Cablevision reports 27,472 CableCARD subscribers, an increase of 8% over the previous report. But before you get too excited, the new numbers include subscribers from Optimum West, which was integrated into Cablevision during the quarter. These 27,472 subscribers account for 39,462 CableCARDs, so there are a number of multi-card households. During the reporting period they actually had 5,288 new CableCARD installs, 57% of which were self-installs. The rest opted for professional installs, which cost an average of $34.95. The good news is they average 1.0 truck rolls per install, so they get it right the first time. And they charge $2/month per card.

Charter reported a total of 31,884 CableCARDs in service. And they still average 1.5 truck rolls per professional installation, the worst of the lot. I can believe it, I’m a Charter customer. The techs I’ve worked with have all been great, but many have expressed a desire for more training on CableCARD and TiVo. I’ve heard from a number of them that they’re really not being trained, and it seems like there are a couple of ‘experts’ in the area that they always end up calling. (I’ve had to have Charter out a couple of times for CableCARD and/or Tuning Adapter issues. Invariably it ends up being a back end problem, but the phone techs give up and insist on sending truck. Then the tech ends up calling around until he finds the right person to fix the issue.) Charter also charges $2/month per card, and an average of $35.00 for professional installs.

Comcast, from their corrected 2/23/12 numbers, has 370,407 CableCARDs in customer homes. Since the last report they installed 25,789 new cards, with only 29% being self-installs. It seems like Comcast customers opt for professional installs 71% of the time, which I find surprising, though it might be explained by the pricing. While they charge an average of $26.00 if it is a separate trip, it drops to $7.15 if it is part of a larger installation. And it takes an average of 1.04 truck rolls, so odds are good they’ll get it right the first time. Comcast’s first card is generally free, and additional cards in the same device average $1.50. (It isn’t in the report, but I believe additional cards in other devices are normally $2/month.)

Cox has 52,479 CableCARDs in service, at an average cost of $1.99/month. Customers who opt for a professional install pay an average of $24.00, though it takes an average of 1.1 visits. So your more likely to get to have the chance to get to know your installer better than with Cablevision or Comcast.

TWC has 75,542 CableCARDs in use with 54,575 subscribers, so again we know there are a number of multi-card households. TWC’s cards are the most expensive, at an average of $2.37 (I’ve heard that they charge quite a bit in some areas, which would explain the elevated average). Surprisingly their install numbers are even most skewed than Comcast’s, with 83% electing professional installs, which cost an average of $28.16. Why do so many people opt for professional installation? I’d love to know the motivation there.

All in all, not much has changed since the last report. I wish the different MSOs would normalize their reporting – some report self-install vs. professional installs. Some report costs with more granularity. Subscribers vs. number of cards. It’d be nice if they’d all report the same things in the same way. I can dream.

We knew the issue was a contractual one, between Netflix and content owners. They did not have the rights to stream to MSO hardware. But it seems the issue was specifically with Starz, and now that Netflix and Starz have parted ways that obstacle is gone. Well, maybe. No one is sure if the Starz deal was the only obstacle, or if there are similar clauses in contracts with other rights owners, and Netflix isn’t commenting. But there is some hope:

The Starz deal was why RCN Corp. was unable to offer Netflix on TiVo boxes when the cable operator launched its TiVo offering in May 2010, RCN Senior Director of Video Product and Video Network Operations Jason Nealis tells Light Reading Cable. He says he’s eager to reopen the dialogue with Netflix now that that Starz deal has expired.

I suppose if anyone would have inside information it’d be Jason, since he’s the point man for RCN’s TiVo implementation.

Of course, TiVo could always implement DLNA, which would open the door to work arounds. Which is how ARRIS gets Netflix on their MSO Moxi units, via PlayOn running on a user’s computer, as stated in this video:

Or, when TiVo publishes their SDK, perhaps PlayOn could create an app for TiVo.

Given TiVo’s working relationship with Comcast, and their integration of Comcast’s XFINITY On Demand into retail units, I have to wonder if we might see support for Comcast’s Streampix streaming service land on TiVo as well. That’s something I certainly would not expect to see supported on units provided by other MSOs, but it would be a welcome addition to retail units. And it would make sense, seeing as Comcast’s deal is for support or retail units and I’d expect them to be happy to have their streaming service on those boxes.

Via Light Reading Cable.

But in looking at this page I noticed something else. TiVo has a general page linking to all of their MSO offerings. Now, we know all about RCN, Suddenlink, Grande Communications, and Charter. But there are two other MSO’s listed on the page which I’d previously managed to overlook: Comporium and Northland Communications.

I have to say, finding TiVo on Comporium’s website wasn’t easy, but it is there. They’re a small MSO with service areas in North & South Carolina. It looks like they put out a press release way back on 2/2/11 announcing the TiVo Premiere. They lease each TiVo Premiere for $16.95/month, which is $10 more than their standard HD DVR for the first box, but only $4 more for each additional box. That doesn’t seem like too bad a deal.

Finding TiVo on the Northland site is much easier. They’re another small MSO, but much more spread out according to their “Who We Are” page:

Northland Communications currently owns and operates smaller-market cable systems in Alabama, California, Georgia, Idaho, North Carolina, South Carolina, Texas and Washington. Northland is headquartered in Seattle, Washington and has a divisional office in Statesboro, Georgia.

It looks like Northland is referring customers directly to TiVo for purchases, but they’re also offering leases on TiVo Premiere units for $13.95/month in ‘select sites’.

Comporium is one of the small MSOs serviced via TiVo’s partnership with Evolution Digital, as much as stated in the press release. I’m not positive about Northland, but I expect the same is true there given their size. If you know of other small MSOs offering TiVo to their customers please let us know in a comment. I’m sure these deals can’t be adding many subscribers to TiVo’s totals, but every little bit is a positive. And I think small MSOs offering TiVo is a good thing for the customers too.

• DirecTV will finally release the new THR22 DirecTiVo in “early December”.
• Charter will be launching retail “very soon”.
• Comcast OnDemand support is in field trials now.

I think the DirecTiVo news is the most anticipated, so in TiVo’s own words:

Additionally, DirecTV has informed us that they intend to initiate the launch of the TiVo-DIRECTV product in select markets in December with a nationwide rollout to follow early next year.

Still, don’t set your expectations too high. We know the new DirecTiVo is based on the old HR22 DVR and it will lack a number of features found in the current DirecTV DVRs. DirecTV really doesn’t seem to want to release it, but they’re obligated to do so. They’re clearly focused on their in-house units with their five-tuner DVR, new HD UI, and whole-home support.

In other news, TiVo has had their first increase in total subscriptions in four years – adding 117,000 subscribers compared to a 33,000 loss last quarter. This is mainly thanks to Virgin Media’s runaway success, but also growth from RCN & Suddenlink. With ONO, Grande Communications, and Charter coming online, and the new DirecTiVo finally shipping, the MSO subscribers will become even more significant going forward. And TiVo indicated further MSO deals are pending, with TiVo having responded to several Request for Proposals.

Conversely, the retail side continues to slide. They added 30,000 new subscribers, but lost 60,000 old ones – for a 30k net loss. MSOs actually added 147,000 – the lower 117,000 net add is due to this loss. The good news is the new subscribers are worth more to TiVo as the higher monthly fees increase revenue per customer. If & when Comcast launches VOD support on TiVo and provides some marketing and free installations, as promised, it may help the retail numbers. But it seems clear the MSO side of the house is going to be the real growth engine.

Oh, there was one other interesting point. Rogers mentioned that most of TiVo’s development now serves both MSO & retail. They’re building a common code base for all platforms, MSO and retail, to better leverage their R&D spending. In the past the two sides operated pretty much independently. Remember the soft-TiVo product for Comcast & Cox was a completely new Java code base. While retail boxes remained on the conventional development path. Now MSO & retail units will be running common, if not identical, software and hardware will also be shared.

We’re already seeing that with the TiVo Premiere Q for MSOs and TiVo Premiere Elite for retail. It is basically the same box with a different hard drive capacity. And the 14.x software used by MSOs, such as RCN, and the retail units is from a common base. This means that any feature TiVo develops can be released to retail and offered to their MSO partners simultaneously – contractual issues permitting of course. (See Netflix being unavailable on MSO units.) It is also makes things more efficient, you don’t need two development teams both implementing the same thing on different platforms. Even the software for Virgin Media and ONO, which runs on third party hardware, appears to be from the common code base.

One thing I was hoping to hear, but didn’t, was news on the TiVo Preview coming to retail. I really want this and it is annoying that it is available to MSOs but not retail. It is the perfect companion to the TiVo Premiere Elite.

Overall though, I thought it was a pretty good quarter.

I’ll tackle the second one first, Comcast. For this one I think people just aren’t paying attention. This was announced back in May, and ever since people have been asking when? Which doesn’t make much sense, as the announcement says when and where we’ll see it!

These statements by Comcast and TiVo relate to, among other things, the future integration, availability and promotion of Xfinity TV On Demand Service on TiVo Premiere set-top boxes in select markets with the first expected market to be San Francisco Bay Area early next year and availability in additional markets after that.

OK, so it is hidden in the fine print, but it is there. Elsewhere Comcast made statements that the first customers may see pilot deployments around the end of the year. So either way we shouldn’t expect anything until around the end of the year, and then it’ll be a limited deployment for a while I’d bet. Deploy to one area, shake things out, then expand. But as Comcast is bringing Xfinity TV On Demand to a number of platforms this isn’t an effort unique to TiVo. What’d be really interesting is if Comcast sold some kind of OTT subscription so non-Comcast customers could access Comcast OnDemand. That’d be radical.

And just in case you think Comcast might be backing out, they just mentioned this in a filing with the FCC:

We are working with TiVo on a solution to deliver Xfinity On Demand to TiVo CableCARD devices. We are aiming to start trialing the service later this year.

So be patient.

Now, what about Cox? The deal with Cox was announced way back in August, 2010 and since then both parties have been pretty much silent on the progress, if any. This has led to increasing speculation that the deal collapsed and both parties were just ignoring it. But that doesn’t appear to be the case. Thanks to a comment on InvestorVillage I was alerted to a comment posted on the DSL Reports Forums by a Cox employee in July:

As far as TiVo Premier goes, it is still an active project, but we don’t have a launch date to announce yet.

One comment from Cox in July not enough? Well on Tuesday TiVo responded to a comment on Facebook:

We are working with Cox to enable their VOD on the TiVo Premiere. As soon as we have more information on timing we will update the page!

It is certainly taking a while, but I’m not that surprised. IP-enabling OnDemand isn’t a trivial task. I wouldn’t be surprised if it turned out to be more work than Cox & TiVo expected. But I’m glad to see the work continues.

That’s how much of a flop CableCARD has been at retail, less than 2% of the cards deployed are used in retail devices, like TiVo. I don’t blame the retail devices, but rather the pain involved in obtaining CableCARD (self-installs only mandated 8/8/2011) and the artificial limitations on retail CableCARD devices (no OnDemand, for example). tru2way is an even bigger flop, basically being stillborn. And this is why I don’t feel like we can rely on cable industry developed solutions, but rather we need something like a solid AllVid mandate backed by and FCC with some teeth to make sure it happens.

But I digress, let’s get back to this report and look at each of the five MSOs reporting.

Cablevision has 25,303 CableCARD subscribers with 36,692 cards deployed, an average of 1.45 per household. For this reporting period, which spans time before and after the self-install mandate, 43% or 1,395 were professional installs and 57% or 1,851 were self-installs. They charge $2/month per CableCARD. And if the customer elects for a professional installation there is a fee that averages $34.95, but the average number of truck rolls per install is just 1.0, so it seems like they get it right the first time.

Charter Communications had 31,425 CableCARDs in service as of August 31, 2011. They begin allowing self-installs on August 1, before that a professional installation was required. Interestingly Charter says their average number of truck rolls per install is 1.5, which indicates they’re customers probably have some more trouble getting it working. I’m a Charter customer and I have required multiple truck rolls in the past due to installers not having working cards on their truck, etc. Charter also charges and average of $2/month per CableCARD, and there is an average $35.00 fee for professional installs.

Comcast is the big one, with 367,064 CableCARDs in customer homes. In this reporting period they installed 38,403 CableCARDs, split almost exactly 50/50 between professional installs and self-installs. The average truck rolls per install is 1.03, so it seems like they get it right nearly every time. Comcast also has the best pricing, the first card is free and each additional card is $1.50/month. For professional installation, if it is part of a larger install it is an average of just $7.15. For a trip just to install a CableCARD they charge an average of $26.

Cox Communications has 50,791 CableCARDs in the field. Each card costs $1.99/month. For professional installations they charge an average of $24 and it takes an average of 1.1 truck rolls. So not as good as Cablevision and Comcast, but certainly a lot better than Charter.

Time Warner Cable has 74,047 CableCARDs in place with 53,503 customers. Until 8/8/2011 and the FCC mandate they required a professional installation, since they they’ve allowed self-installs. Which helps explain the 87%/13% split for the reporting period. The good news is they seem to get it right with an average of 1.03 truck rolls for professional installs, which cost an average of $26.64. CableCARDs run an average of $2.50/month.

So it seems like Charter is having the most trouble getting CableCARD working right the first time, and Cox is struggling a little, but Cablevision, Comcast, and Time Warner Cable are doing fairly well in that department.

There’s more interesting information in the full report, if you care to read it.

• Comcast: Checking their website it doesn’t look like anything has changed since last week. There are still FAQs saying that you need a professional install, but CED Magazine is reporting that they’re allowing self-installs now:
  

  “Certain markets have had limited self-install options for CableCards since about 2007,” said Comcast spokeswoman Jenni Moyer. “Beginning in early August, we’ll start rolling out a CableCard self-install program across our footprint where customers will be able to go into our sales, service or payment centers and pick up a CableCard self-install kit, go home, install it, and then call in to activate it.”

  Comcast doesn’t ship the CableCard self-install kits to customers.

• Time Warner Cable: As expected, TWC has started allowing CableCARD self-installs. They’ve even created help guides for InfiniTV, Moxi, and TiVo.
• Cox Communications: They were already allowing CableCARD self-installs before the mandate. They have an instruction sheet online.
• Charter Communications: Their website gives mixed signals. The FAQ still says professional installation, but they have a self-install page. I think they just missed updating the page:
  

  Due to the technical complexity associated with the pairing of the devices, all installations of a CableCARD MUST be completed by a Charter Technician. Self-installation of CableCARDs is NOT an option for customers and thus customers cannot pick up a CableCARD from a local office

• Verizon FiOS: As with Cox, they were already offering CableCARD self-installs. You can order your CableCARD online.
• Cablevision: They’ve also been offering CableCARD self-installs. The information is on their site.
• Bright House Networks: They allow self-installs for Road Runner broadband, which means they should be allowing CableCARD self-installs as of August 8th. But I can’t find info on self-installs on their site, and there is a page that still says they’ll be allowed soon:
  

  CableCARDs are professionally installed by Bright House Networks. The option to install a CableCARD yourself will be available in the near future.

  If anyone knows of information on their site indicating CableCARD self-installs, leave a comment.

• Suddenlink Communications: According to their CableCARD FAQ they are allowing self-installs.
• Mediacom Communications: I couldn’t find a good reference on their website, but a post on their support forum by one of their reps on Saturday indicates they are allowing users to pick up CableCARDs and do self-installs:
  

  You can pick-up or have a tech install a cable card for you for a minor fee. This would be $1.99 per month for each card.

• Insight Communications: I couldn’t find anything useful on their site. Searching their site for ‘CableCARD’ only returns four hits. It looks like they offer broadband self-installs, so they should be covered by the August 8th mandate. If you have more info, let us know in a comment.
• CableOne: Same as Insight, nothing clear from their site. It seems like they offer broadband and cable box self-installs, so they should also be covered under the August 8th mandate. Leave a comment if you have any info, thanks.
• WideOpenWest Networks: Their website still says they require a technician to install CableCARD, it is under the ‘Equipment’ section of the FAQ.
  

  Can I install a CableCARD by myself?

  No. To ensure that your installation is performed properly, a technician is required to install and activate your CableCARD. Please contact us to set up an installation appointment.

  They do seem to allow cable modem self-installs, so they should be under the mandate.

• RCN: I couldn’t find a good page on their site, but I did find a forum post on DSLReports dated July 28th, by Jason Nealis, RCN’s Sr. Director, Video Product and Video Operations:
  

  The way this will work is that a customer can receive a kit via mail or they can pick one up at a local office.

  In the Kit it will have instructions on whom to call, basically you will install the card and then go thru a IVR and have the work order closed and a hit sent to the card.

  Then you will have to call in with your pairing information and have the card paired to receive encrypted channels.

OK, I think that’s deep enough. These smaller provider’s tend to have sites that aren’t as useful when it comes to finding info, and those I’ve listed already cover the vast majority of cable customers in the US.

If you have any additional info, please leave a comment.

EDIT 8/11: Matthew Zinn, Senior Vice President of General Counsel for TiVo, today made a blog post about the new CableCARD rules which included a few useful links:

In the meantime, for additional information regarding CableCARDs and consumers’ rights visit www.fcc.gov/guides/cablecard-know-your-rights or www.fcc.gov/guides/digital-cable-compatibility-cablecards-plug-and-play.

If you have questions as to whether your cable operator is complying with the CableCARD rules, you can email the FCC at CableCARDEnf@fcc.gov or call (202) 418-1160. To file a complaint, visit www.fcc.gov/complaints.

If your cable provider isn’t following the new rules, report them to the FCC.

Well, they’re something of a mixed bag. Comcast’s policies seem to vary territory to territory. In some areas they seem to have been allowing CableCARD self-installs pretty much since they first launched, while in others they require ‘professional installation’ to this day. As this thread on DSLReports illustrates, it is still a bit of a confusing mess. Today some customers are able to pick up a CableCARD from their local office, while in others, despite mentioning the FCC mandate, are being“told basically ‘not going to happen anytime in the future’“.

Interestingly, back in June Comcast had a page on their site which made things perfectly clear – but I can’t find any sign of the page, or anything similar, on their site today. And here’s a screencap from back then as proof – click on it for a larger version. The text is:

Can I install a CableCARD myself or does a technician need to come to my home?

Professional installation by a Comcast technician is available. In addition, starting on August 1, 2011, CableCARD self install kits will be made available at Comcast front counters. If you would like to install the CableCARD yourself, you will be able to pick up a CableCARD Self Install Kit at a Comcast front counter and activate the CableCARD by calling our CableCARD activation hotline at 1-800-XFINITY.

Please note: If you choose to use a CableCARD Self Install Kit, we are unable to provide you with assistance over the phone with the installation of the CableCARD. You will need to refer to the owner’s manual for your device or call the manufacturer’s toll-free number to answer questions about CableCARD installation.

Obviously the FCC mandate is now for August 8th and not the 1st, and customers are still reporting today that not all offices are allowing pick ups. And, indeed, it seems like the workers in some offices aren’t even aware of the mandate. So what will happen come next Monday?

I guess we’ll find out soon enough.

Yesterday Hank, a reader from Spencer, MA, contacted me to let me know that he’d received a notice in the mail from Charter that they will be switching to SDV on February 2, 2008 and that, as a TiVo user, he could claim a free Tuning Adapter on or after January 5th. Spencer is very close to my home in Worcester, MA, where I also have Charter. I haven’t received the notice yet, but it may well be waiting for me when I return from CES next week. I’m kind of hoping it is, I’d like to get some hands-on experience with the Tuning Adapter to see if it works as well as promised.

And today TVBarn.com is reporting that Time Warner has begun deploying Tuning Adapters in Austin, TX.

It is about time, but it is nice to see this finally getting into the hands of TiVo users to allow them to tune SDV content.

We are rolling out TiVo beyond the Boston market test, where things are going quite well and we are going to be introducing other cities, probably starting with Chicago in the first quarter next year

This isn’t too surprising as Chicago is one of two cities where Comcast has rolled out tru2way support (the other being Denver – maybe they’ll be next?), and, as Light Reading’s Cable Digital News points out, it is another territory where Comcast uses Motorola hardware. Still no word on when Comcast and TiVo will complete the work to being the software to Cisco/Scientific Atlanta DVRs.

Comcast is also running a new TV spot to advertise the TiVo software:

He followed up in July, and by then the bloom was already off the rose. His patience was low with the performance issues by then and he was experiencing frozen screens and missed recordings. He was already considering returning to the standard Comcast DVR.

Things apparently improved for a while starting last month. The number of glitches dropped and the performance seemed to improve. But then, last week, he was locked out of On Demand and lost the ability to record anything – and that was the last straw. As he sums it up:

My two biggest gripes with the Comcast + TiVo service were its speed and reliability. Setting a recording took anywhere from 20 seconds to over a minute. With Comcast DVR, a recording is set almost instantaneously. Service reliability was the bigger issue; TiVo would regularly freeze up and required to be reset–a process that required me to pull the cable box out, unplug it, plug it back in, and wait 10 to 15 minutes for the service to return–and then re-enter the 30-second skip code for the remote. Other than encouraging me to read more, the only advantages I found with TiVo were its suggested recordings, its ad-free channel guide, and a better organized list of recorded shows, which grouped multiple recordings of a show and all HD recordings into folders.

I’d really like to see TiVo succeed in bringing their software to cable DVRs, but the road so far has been long and rocky. At this point it seems that there is still a lot of work to be done, and some of the troubles may be due to the lack of power in the fielded hardware. The TiVo software is running on top of a middleware layer (currently a precursor to tru2way, and it should be tru2way in time) which runs on top of a base OS, and that means it will be hard to match the performance of a native OS. A solution for this could be newer generations of cable DVR hardware which are bring designed from the start to support tru2way applications, instead of existing hardware that has been updated with software.

There are so many variables involved it is hard to say if the troubles are with TiVo’s software, the middleware layers, the base OS, the hardware, the head-end servers, or something else. So the issues may be out of TiVo’s hands. But in the end it doesn’t matter to the end user, they just want the software to work and don’t care who’s problem it is. So I hope that TiVo and their partners can sort things out and make it ‘just work’, or it will continue to struggle to gain traction.

The cable industry is aggressively rolling out tru2way support and all of the MSOs, except for Charter, have promised to have it available by July 1, 2009. Charter says they’ll have completed roll-out by July 1, 2010. So the territory where tru2way TVs will be usable will be rapidly growing in the coming months.

This is clearly a very limited roll-out that is more about bragging rights, I don’t think they’ll be selling a huge number of these sets just yet. The 42″ TH-42PZ80Q plasma has an MSRP of $1,599.95 and the 50″ TH-50PZ80Q plasma has an MSRP of $2,299.95. It is great to see the technology hitting the streets, it is a good sign for the future. We’ll certain to see a lot of tru2way products come CES in January.

The press release has more details:

Oct 15, 2008 16:34 ET

Panasonic Announces Arrival of First Tru2way™ HDTVs at Retail

Consumers in Chicago and Denver Will be First to Experience Comcast’s Video On Demand Without a Set-Top Box

Panasonic Tru2way-Enabled VIERA Plasma HDTVs to Go on Sale in Late October at Abt Electronics, Ultimate Electronics and Circuit City Stores

CHICAGO, Oct. 15 /PRNewswire-FirstCall/ — Panasonic (NYSE:PC) , the consumer electronics industry leader in the development and application of tru2way technology, and Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) , the nation’s leading provider of entertainment, information and communications today announced the arrival of the first tru2way VIERA HDTVs at Abt Electronics in Glenview, IL and officially declared the tru2way platform active in Chicago and Denver.

Tru2way technology is being used to create a common software platform that will enable cable companies, consumer electronics companies, content developers, network programmers and others to extend interactivity to the TV set and other kinds of devices. The new Panasonic VIERA HDTVs are built with tru2way technology inside, enabling consumers to access two-way digital cable programming, like video on demand, without a cable operator-supplied set-top box. Panasonic and Comcast have worked together to lead the development and deployment of tru2way technology and related products which are based upon specifications developed by CableLabs®, the industry’s research and development arm.

“The arrival of the first tru2way HDTVs at retail combined with Comcast’s activation of its first tru2way head ends are among the most significant milestones in the cable industry and are a huge win for consumers,” said Dr. Paul Liao, Chief Technology Officer, Panasonic Corporation of North America. “At the May 2008 Cable Show, we stated with great confidence that the first tru2way HDTVs would be available for consumer purchase at retail by fall 2008. We are especially delighted to have partnered with Comcast and CableLabs to make good on that promise and bring the benefits of open networks to cable subscribers.”

Comcast customers in the Chicago and Denver areas will be the first in the U.S. to have access to tru2way digital cable service with additional cities expected to go live in the coming months. The tru2way VIERA HDTVs will be available in the Chicago area at Abt Electronics in Glenview and at Circuit City locations as well as at Ultimate Electronics and Circuit City stores in the Denver area.

“We see tru2way technology as the gateway for our customers to experience the next generation of interactive television, and our work with Panasonic to develop and support the first fully digital-cable-ready HDTVs is an important first step in making that happen,” said Mark Hess, Comcast’s Senior Vice President of Video Product Development. “This common platform also will let us develop an exciting array of interactive services and applications that we can deliver on our advanced fiber network to a variety of consumer electronics devices.”

Added Dr. Richard R. Green, President and CEO of CableLabs, “We are delighted to see the arrival of Panasonic tru2way products in the marketplace. As tru2way technology is adopted by operators like Comcast nationwide, consumers can be confident that exciting new interactive digital cable products and services from innovative companies, such as Panasonic, will work seamlessly with any cable network that supports OpenCable specifications nationwide.”

Panasonic’s first tru2way enabled VIERA Plasma HDTVs will be offered in 42-inch class and 50-inch class sizes with integrated tru2way cable receiver capability within the set’s chassis. The TH-42PZ80Q and TH-50PZ80Q will be extensions of Panasonic’s critically acclaimed VIERA PZ80 series of 1080p Plasma HDTVs. The TH-42PZ80Q will have an SRP of $1,599.95 and the TH-50PZ80Q will have an SRP of $2,299.95. These tru2way HDTVs will allow consumers to access all digital cable services such as electronic program guides and the full range of interactive and video-on-demand programming – all accessible directly via the television’s remote control – without the costs or clutter associated with a traditional external cable set-top box.

In addition to tru2way technology, the VIERA TH-42PZ80Q and TH-50PZ80Q feature 480Hz Sub-field Drive for sharp motion image focus, 1,000,000:1 Dynamic Contrast Ratio, VIERA Link and a built-in SD Memory Card reader for playing back digital photos. VIERA Link allows the consumer to operate all VIERA Link equipped components with a single remote.

About Panasonic

Based in Secaucus, NJ, Panasonic Corporation of North America markets a broad line of digital and other electronics products for consumer, business and industrial use. The company is the principal North American subsidiary of Panasonic Corporation (NYSE:PC) , and the hub of Panasonic’s U.S. branding, marketing, sales, service and R&D operations. Panasonic Broadcast & Television Systems Co. is a leading supplier of broadcast and professional video products and systems. Panasonic Broadcast is a unit company of Panasonic Corporation of North America. Information about Panasonic and its products is available at www.panasonic.com. Additional company information for journalists is available at www.panasonic.com/pressroom.

About Comcast Corporation

Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK) (www.comcast.com) is the nation’s leading provider of entertainment, information and communication products and services. With 24.6 million cable customers, 14.4 million high-speed Internet customers, and 5.6 million Comcast Digital Voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems and in the delivery of programming content.

Comcast’s content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, VERSUS, G4, PBS KIDS Sprout, TV One, ten Comcast SportsNet networks and Comcast Interactive Media, which develops and operates Comcast’s Internet businesses, including Comcast.net (www.comcast.net). Comcast also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.

About CableLabs

Founded in 1988 by cable operating companies, Cable Television Laboratories, Inc. (CableLabs®) is a non-profit research and development consortium that is dedicated to pursuing new cable telecommunications technologies and to helping its cable operator members integrate those technical advancements into their business objectives.

™ tru2way, CableLabs and OpenCable are trademarks of Cable Television Laboratories, Inc.

Source: Panasonic

CONTACT: Chris De Maria, +1-201-348-7182, demariac@us.panasonic.com, or
Jeff Samuels, +1-201-392-4571, samuelsj@us.panasonic.com, both of Panasonic;
or Jenni Moyer, of Comcast, +1-215-286-3311, (c) +1-610-506-8951,
jenni_moyer@comcast.com

Web Site: http://www.comcast.com/
http://www.comcast.net/
http://www.panasonic.com/
http://www.panasonic.com/pressroom

EDIT: User mtchamp from the InvestorVillage TiVo board snail mailed me his copy of the original flier and I’ve re-scanned the images. I also made a scan of just the fine print, which wasn’t readable in the earlier scans.

That is, of course, if the numbers are true – and they may not be. See the table below and especially the first footnote¹. Comcast’s numbers for September are estimated to be 10-15% lower than actual due to an internal error. We could be looking at an increase of more than 34,000 users instead of only 2,000!

While 34,000 would certainly be better than 2,000, it still isn’t really setting the world on fire. Maybe the M-Card is a ray of hope in those numbers – if customers who previously used two S-Cards are trading them in for a single M-Card on devices like the TiVo HD, it would result in a lower cumulative number. Still, I don’t expect that’s a huge number either.

This is not to say that the total number of CableCARDs in use is that small, not at all. Since the FCC’s ‘integration ban’ went into effect on July 1, 2007, forcing cable MSOs to begin using CableCARDs in their own STBs, those same ten MSOs have deployed over 7,800,000 CableCARDs in their STBs. So in less than fifteen months they’ve deployed more than twenty times the number of CableCARDs as have been issued for 3rd party UDCPs in the four years they’ve been available.

The integration ban was supposed to force cable MSOs to ‘eat their own dog food’ and thereby improve support for CableCARDs. The idea was that this would help foster the overall CableCARD market. Better support from MSOs would lead to more products, which would mean more 3rd party UDCPs in the field. For the most part, this hasn’t happened.

Why not? Well, I think I can sum it up in one brand name: tru2way. Starting late last year, and getting an official launch at CES in January, OCAP became tru2way and marked a push to get consumer electronics companies on board. Then starting with Samsung in May, followed by a larger push by Sony later that month, CE vendors started jumping on the tru2way bandwagon.

What does this have to do with slow CableCARD adoption? Well, these same CE vendors have held off on releasing UDCPs while they work on tru2way-enabled devices. Why invest in developing and marketing a unidirectional product when you’re going to obsolete it with a two-way product in a year? The first tru2way products are starting to trickle out, and there will probably be a bunch of them on display at CES in January. So I think the push for tru2way was a major contributor to lax CableCARD pick up. Vendors just haven’t been releasing CableCARD-enabled products so there aren’t many options for consumers, which naturally means not many cards are being deployed. Really the only major CableCARD product out there right now is TiVo. CableCARD TVs are thin on the ground. CableCARD-enabled Media Center PCs have had anemic sales. And Digeo outright canceled their Moxi CableCARD HD DVR.

CableCARD was slow out of the gate, and by the time MSOs had the infrastructure worked out vendors were already looking toward round two with tru2way and they just decided to sit round one with UDCPs out entirely. The deployment of SDV and the need to develop a Tuning Adapter, and to support it, was very likely a factor in that as well. I don’t expect to see any real pick-up in CableCARD utilization until a sufficient number of tru2way devices are available to consumers, and then I do expect to see a real uptick.

The filing also has information from several MSOs on their CableCARD pricing and install practices. To compare June to September:

¹Comcast states that their September number may by low by 10-15% due to internal reporting errors.

The count for this reporting period of CableCARDs installed in one way retail devices in active customer homes is estimated to be 10-15% lower than the actual number due to internal Comcast reporting errors that are the result of an internal Division reorganization during the reporting period. The next quarterly report will more accurately reflect the actual count.

Since Comcast has such a large installed base this could be the reason for the seemingly small total uptick. The other four combined yield an increase of 3,429. Comcast’s apparent drop of 1,383 drags it down. But if they’re short just 10% they would actually have an increase of 20,334 users. And 15% would mean an increase of 31,192! So we’d be looking at a total increase of 23,763 to 34,621 – rather more than around 2,000. And that’s just from these five MSOs.

²Comcast allows self-installs in at least some areas – 68% used truck rolls, 32% were self-installs.

³First card is free, fee for additional cards.

⁴$10.43 if install is included with other services, $25.14 if purpose visit.

⁵0.2% of Time Warner installs are self-install, which is negligible.

⁶The average is $2.26, but they report most divisions are $1.75 – which must mean the remaining divisions are rather higher to bring the average up.

- Adjusted EBITDA for the second quarter was $10.6 million compared to a loss of $(11.2) million in the year-ago quarter, exceeding guidance
- Net Income for the second quarter was $2.9 million compared to a loss of $(17.7) million in the year-ago quarter
- TiVo service on Comcast now available in Connecticut; Comcast will also continue to fund development work for the TiVo product to expand the feature set and add support for the Tru2way infrastructure
- TiVo and Entertainment Weekly join forces to connect TV viewers with their favorite shows on an automatic basis
- TiVo successfully launched in Australia by Seven Networks
- YouTube videos now available on the TiVo service; TiVo now provides access to more television and broadband content choices than any other offering in the world
- TiVo’s recent research deal with media marketing research firm TRA ties anonymous viewing behavior to product purchases in millions of homes; Significantly changing the quality of information available to marketers

TiVo is continuing to bleed subscribers, which was expected. With DirecTV continuing to push their in-house HR20/21 DVRs are upgrades for DirecTiVo users, even with additions from Comcast, Cox, and Cablevision Mexico, TiVo lost 136,000 net MSO/Broadcaster subscribers. And while TiVo added 36,000 gross TiVo-owned subscribers, they lost 78,000 gross TiVo-owned subs, for a net loss of 42,000 TiVo-owned subscribers. This is mainly due to legacy subscribers upgrading to HDTV and opting for cable or satellite DVRs. This leaves TiVo with 1.686 million TiVo-owned subscriptions and 3.623 total cumulative subscriptions.

This may sound bad, but it is also partly because TiVo has made massive cuts in their marketing efforts to focus on profitability instead of subscriber growth. For the quarter just ended their subscriber acquisition cost was only $135, a massive decrease from the $758 of a year ago, and only a slight up-tick from the $118 of last quarter. Instead of lots of marketing, subsidies, and rebates, which drive up SAC, TiVo is focusing on working with retailers and other vendors to bundle TiVo with HDTV purchases to capture those upgraders before they pick up another DVR. They’re also focusing on their partnerships with Cablevision Mexico, Comcast, Cox, and Seven Network in Australia.

And in that area things are looking good. The TiVo launch in Australia with Seven Network has been going well and TiVo is happy with it, though actual figures have not been released. And Comcast is finally ready to start a major marketing push and to announce more territories:

In regards to our mass distribution strategy, a top Comcast executive offered the following comments on the progress the TiVo on Comcast service has made to date: “We are pleased with the progress of the TiVo service and have broadened its footprint in our New England market to Connecticut. Refinements to optimize the product’s performance have been mostly completed, significantly improving the user experience. Importantly, we intend to light up a full marketing campaign around TiVo in September and, upon this occurring, we will be announcing multiple additional markets to which TiVo will be rolled out through next year. We will also continue to fund development work for the TiVo product, which will include expanding the feature set and adding support for Tru2way infrastructure.”

Rogers stated, “Additionally, the TiVo service on Cox, which is currently in trials, is on track for a launch in Cox’s New England market later this year.”

“On the international front, Seven and TiVo successfully launched the TiVo service in Australia and because of the significant consumer demand there, retailers chose to release the product early. We are also extremely pleased with the marketing shoulder Seven is putting behind this launch as they’ve prominently featured TiVo in their marketing and programming including the Olympic opening ceremonies, their top rated morning show, and a special advertising spot they developed, which includes dozens of Australian celebrities. International distribution is an increasingly important component of our business model and there continues to be tremendous interest from international distributors for the TiVo offering.”

During the Q&A session when asked if Comcast had gotten to the point where they don’t require a truck roll for the TiVo software install, Rogers answered that that issue was a dependency on non-TiVo software and that Comcast was close to deploying the solution. It sounded like that was the gating factor for Comcast to launch the marketing effort, and that also helps explain Comcast’s satisfaction despite the delays, it doesn’t sound like it was TiVo’s problem.

During the Q&A session at the end of the call, Rogers once again mentioned a tru2way TiVo box, what the user community has started calling a ‘Series4′. He didn’t offer any specifics (unsurprisingly), but his feeling is that it will take more time for the industry to establish a national tru2way playing field to make it viable to release such a product. Personally I think that they may show something, prototype perhaps, at CES in January with the release for later in 2009 as most of the cable MSOs have pledged to have tru2way in place by July, 2009. Just my speculation.

You can get more information from TiVo’s release and key metrics.

Picked up from TWICE.

Press release below:

Jul 28, 2008 12:03 ET

LG Electronics, Cable Operators Reach Two-Way ‘Plug and Play’ Accord

Pro-Consumer ‘tru2way™’ Pact Clears Path for Video on Demand, Digital Video Recording and Other Interactive Services

ENGLEWOOD CLIFFS, N.J., July 28 /PRNewswire/ — LG Electronics, Inc. today announced the signing of a memorandum of understanding (MOU) with the top six U.S. cable operators, supporting the use of the “tru2way™” technology platform for delivering two-way interactive digital cable services without a set-top box.

“This pro-consumer pact means that LG tru2way HDTVs planned for 2009 and beyond will receive the newest interactive cable services, from video on demand to interactive programming guides, in virtually every media market and without a set-top box. Equally significant, it will facilitate the development of a viable, two-way retail market,” said Dr. Woo Paik, LG Electronics president and chief technology officer.

Developed by Cable Television Laboratories Inc. (CableLabs™), tru2way “plug and play” technology is backed by the nation’s six largest cable companies — Comcast, Time Warner, Cox, CableVision, Charter and Bright House Networks — which together account for an estimated 80 percent of all U.S. cable subscribers and some 105 million homes.

Underscoring the significance of today’s announcement is LG’s role as one of the fastest-growing consumer electronics brands in the United States. A long-time supporter of the CableLabs OpenCable™ initiative, LG Electronics is a leading manufacturer of digital flat-panel displays, digital HDTVs and related digital video products.

Dr. Richard R. Green, president and chief executive officer of CableLabs, said, “With the addition of LG — the latest in a series of MOUs our industry has entered into with leading consumer electronics companies — this again validates our tru2way technology, which employs the same Java-based platform used in mobile phones, interactive broadcasting and Blu-ray HD digital video recorders. Tru2way will allow cable operators, consumer electronics manufacturers, content owners and others to work together to provide creative interactive services directly to the consumer.”

Tru2way technology allows consumers to receive interactive cable services, including video-on-demand, voting and polling, games, and e-commerce in integrated retail DTVs without the need for a separate set-top box.

About LG Electronics

LG Electronics, Inc. is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in 114 operations including 82 subsidiaries around the world. With 2007 global sales of $44 billion, LG comprises four business units — Digital Appliance, Mobile Communications, Digital Display and Digital Media. LG Electronics USA, Inc., based in Englewood Cliffs, N.J., is the North American subsidiary of LG Electronics, Inc. In the United States, LG Electronics sells a wide range of digital appliances, consumer electronics products and mobile phones under LG’s “Life’s Good” marketing theme. For more information, please visit http://www.lgusa.com/.

CableLabs and tru2way are trademarks of Cable Television Laboratories Inc.

Source: LG Electronics, Inc.

CONTACT: John I. Taylor of LG Electronics USA, +1-847-941-8181,
jtaylor@lge.com; or Nathan Friedman of Ogilvy Public Relations,
+1-312-397-6009, nathan.friedman@ogilvypr.com, for LG Electronics, Inc.

Web site: http://www.lgusa.com/