Smarthouse is reporting that Seven Network’s Hybrid Television Services is considering bringing Nero’s LiquidTV | TiVo PC to Australia. As I covered back in September, LiquidTV | TiVo PC turns a PC into a TiVo DVR with most of the feature you get in a standalone TiVo, and a few you don’t. Seven, of course, launched the standalone TiVo in Australia a mid-year. Bringing the PC software to Australia would expand the market to media center PC users, and I’m sure leverage the guide data infrastructure in place for the standalone model.

TiVo launched in Australia with a AUD$699 price tag and no subscription fees, and it has been doing OK base on past reports. But perhaps not well enough to satisfy Seven Network. Smarthouse reports that Hybrid Media Services, which was setup by Seven to handle TiVo in Australia launched a new TiVo offer. Under the new offer, called Flexirent, users are able to rent a TiVo for AUD$37.58/month over a three year period or AUD$48.22/month with a two year commitment. That would add up to AUD$1,352.88, or AUD$1,157.28, over the terms of the agreements. Conversely, it would eliminate the up-front cost, which may appeal to some users.

For users interesting in owning their TiVo outright, but for whom the AUD$699 cost is too much to swallow in one go, a 10-payment plan is also offered. AUD$69.90 a month for 10 months covers the cost of the TiVo.

The up-front, no fees and retail options remains for user who prefer that option.

Foxtel’s General Manager Box Office, New Media and Pay-Per-View, Brenden Moo responded by saying “I was under the impression that TiVo were not going to offer a subscription service their new Flexirent offering smacks of a disguised subscription fee”. That is one way to look at it, but he may be concerned as Foxtel’s pay-TV service subscription costs from AUD$37.95 up to AUD$105.95 depending on the package, and their iQ2 HD DVR is an additional AUD$200 up-front. So a TiVo subscription package priced about the same as their low-end offer with no up-front fee could provide some strong competition.

There’s another interesting tidbit on the TiVo Australia website, while they’re using MPEG-2 today for movie downloads, by March 2009 they plan to use MPEG-4 to reduce bandwidth usage and speed up downloads. Since other announcements for Australia have later appeared in the US it makes me wonder if we’ll be seeing MPEG-4 movie downloads in the US soon.

Seven Network, through Hybrid Television Services, has found another way to get TiVo to consumers in Australia - the Qantas Frequent Flyer program. Members of the Qantas Frequent Flyer program may now redeem their points to acquire a TiVo, or combine their points with cash in Points Plus Pay to obtain TiVo at a lower cost. If you’re a member of the Qantas Frequent Flyer program you’ll find TiVo in the Frequent Flyer Store.

Via Smarthouse.

Hybrid Television Services, which was setup by Seven Network to distribute TiVo in Australia, continues to expand their retail partnerships. The latest addition is David Jones, which landed an exclusive department store nationwide distribution agreement. They join specialty stores Harvey Norman, Dick Smith, Clive Anthony’s, and JB Hi Fi in selling TiVo in Australia. They’d be on shelves in David Jones stores starting November 10th, for the same AUD$699

Via Smarthouse.

Smarthouse reports that Seven Network is ready to begin offering the 500GB eSATA add-on drive for the Australian TiVo. The description given in their report seems to imply that it may be more locked down than in the US:

“The storage device will be exclusive to the TiVo and will record HD Television. Consumers will not be able to attach the device to other computers or recorders. The TiVo software will automatically see the device and record to it when the storage built into the device is full”.

In the US, of course, it is a standard Western Digital 500GB eSATA My DVR Expander, and the same drive works with Scientific Atlanta cable DVRs as well as with any PC that supports eSATA. Now, this could simply be the ‘Seven Media insider’ who was talking to Smarthouse not knowing that they were talking about. It is true that once you attach a drive to the TiVo it is formatted for the TiVo and you cannot them connect it to another device without reformatting it. But eSATA is eSATA and the drive can be reformatted and reused. I tend to suspect that will actually be the case in Australia too.

Smarthouse also says Seven is set to roll out the TiVo to other retailers, now that Harvey Norman’s three month exclusive is up, including retailer Dick Smith. (What is it with Australian retailers and guys names?) Retailer JB Hi Fi CEO Richard Uechtritz says they still haven’t decided if they will stock TiVo.

Interestingly this story comes just one day after Smarthouse posted a rumor mongering story entitled “Is Seven Media Set To Dump Tivo?” In that story they claimed that ‘Seven Media insiders’ told them that sales through Harvey Norman failed to hit targets and that they were now ‘reviewing their options’. They also said it was “slammed by reviewers.” And pulled this bit from the Australian PC Magazine:

PC Magazine wrote “unlike its US counterpart, the Aussie TiVo is a crippled box. Shipping with a 160GB HD, the TiVo allows you to record up to a pathetic 32 hours of HD or 62 of SD television.

Having personally read a lot of reviews of the Australian TiVo, I have to wonder about the agenda behind this particular Smarthouse article. The reviews of the Australian TiVo have been overwhelmingly positive. Yes, there are issues, and probably the primary one is the hard drive size. But APC was also off base saying it was ‘crippled’ compared to the US box - it has the same 160GB drive. It has lacked the option for eSATA expansion available in the US, but, as above, that’s coming. And calling 32 hours of HD ‘pathetic’? A wee bit of hyperbole. That’s more recording time than the original TiVo models had at all. And more than the TiVo HD has in the US (we tend to have higher bitrates, apparently.) And most users are happy with it. I remember reading that APC ‘review’ when it first appeared, particularly because it was probably the single harshest review of the lot and the only one that I recall being wholly negative. It seemed like the author started out looking for reasons to slam the TiVo. It read more like a rant than a review.

Smarthouse goes on to say “A key problem for Seven Media is content and the emergence of IPTV which will allow consumers to download movies and other content to a HD TV screen.” Yet the author doesn’t say why this is a problem. This is odd, especially since Seven Network has stated that this is specifically not a problem, quite the opposite, since the TiVo will also server as their IPTV gateway into the home. It struck me as very strange that the author would lay this out as a problem with nothing to support the argument when Seven’s stated plans for TiVo include broadband content delivery and IPTV features.

Smarthouse then goes on to talk about Nero’s LiquidTV and declares it a threat to Seven’s TiVo offering. But while they mention it goes on sale October 15th, they fail to mention that’s only in the US, Canada, and Mexico. And really, those who will opt for an HTPC are mostly a different market from those who will opt for an STB. LiquidTV | TiVo PC is no more a thread to Seven’s TiVo box than it is a threat to standalone TiVos in the US - basically none. And that, of course, hinges on some future launch of a version for Australia. The North American version won’t do any good as you need an EPG feed to use it.

The whole article just seemed like sensationalism without any real evidence to back it up, just rumors and unfounded speculation.

I was checking for this repeatedly yesterday, since Australia is across the date line, but the news hadn’t popped before I crashed for the night. Well, it hit while I was asleep and we finally have product, pricing, and availability details for TiVo in Australia.

While July 1st was the launch day, units will be available for retail purchase starting July 29th. The units will be sold at retail in Harvey Norman and Domayne stores (both owned by Harvey Norman) for AUD$699 with no monthly fee, as expected. It was previously reported that Harvey Normal will have a three month exclusive on the sale of TiVo in Australia. While consumers will not be able to purchase a unit in stores until July 29th, beginning July 17th Harvey Norman will be conducting in-store demos to prep the market for the retail launch. The TiVo will also feature in the next Harvey Norman catalog which will be landing in Australian mailboxes during the next week.

ISP Unwired, a Seven subsidiary, will provide distribution and support for both retail and online TiVo purchases. TiVo will launch with all of the standard DVR features found in the US - Season Passes, WishLists, KidZone, TiVo Suggestions, etc. The TiVo USB WiFi adapter will also be available for AUD$59 for customers who cannot use the built-in wired Ethernet connection.

What TiVo will not have in Australia, at least at launch, are most of TiVo’s networking features. Photo viewing, music playback, TiVoToGo (including transfers to PMPs like the iPod, etc), and others will be added later. As there is no monthly fee, it looks like Seven Network will be using these features as a revenue source, charging for the upgrade similar to how TiVo first introduced them as the ‘Home Media Option’. Pricing for the update has not been announced, but it has been referred to as ‘tens of dollars’, so it doesn’t sound like it will be that expensive. I think it could be possible that the costs would include TiVo Desktop Plus capabilities, which runs USD$24.95. It does sound like broadband downloads will not come at an additional fee, but since that’s a competitive advantage and a revenue stream in its own right it isn’t too surprising.

According to Seven’s press releases, they’ll begin rolling out the additional features soon after launch, to continue over the next year. Seven will reportedly be spending ‘millions’ during the Olympics, for which they hold the Australian broadcast rights, to promote the new TiVo service. The TiVo sold in Australia is based on the platform used by the TiVo HD in the US, and it supports analog and digital broadcasts. So it is ready for the growing number of digital (DVB-T) broadcasts in Australia. Like the TiVo HD, the Australian TiVo has dual tuners, which handle both standard- and high-definition, and a 160GB hard drive. It also has an eSATA port and Seven will reportedly begin selling a drive to expand the TiVo early next year. We’ll have to see if the port is actually enabled or not once consumers get their hands on the box, perhaps they’ll work with the 500GB Western Digital My DVR Expander drive used in the US.

According to Smarthouse:

“We are currently in discussions with several content providers and we have already built the backend structure that is needed to deliver content such as movies and content from third party providers. Our initial plan is to give consumers a significantly better recording and management experience of free to air TV and then follow this up with addition services”.
James Warburton said “While the service will be advertising free initially, we do plan to run banner advertising inside content going forward. For the consumer they only pay a one off fee of $699 and no ongoing subscription fees”.

Seven’s major competitor is the pay-TV service Foxtel, which offers their Foxtel iQ2 DVR. While the iQ2 is only AUD$200, AUD$500 less than TiVo, there is a monthly fee. 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. Since the TiVo records free-to-air broadcasts and has no monthly fee, it rapidly becomes the less expensive option.

Seven took the opportunity at launch to take a swipe at Foxtel. As reported via Smarthouse:

A senior Seven executive said “We will have no churn like Foxtel and we anticipate that from September onwards Foxtel will see massive churn as consumers switch to the free TiVo service”.

They took a number of other shots at Foxtel, getting some early jabs in at what will be their main competitor. Seven called attention to the 70% of the Australian TV marker which has “turned their back on Foxtel” and opted for free-to-air TV. And claiming that the 30% that have opted for Foxtel still spend half of their time watching FTA TV.

Seven Network Press Releases:
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Seven Network is planning to make an announcement Monday regarding the launch of the TiVo service in Australia, according to Smarthouse. And apparently Seven is very unhappy with parent company Unwired for leaking their plans to sell TiVo sans subscription fees and stealing thing thunder, as it were.

According to Seven Media insiders, James Warburton the network’s sales director “blew his stack” with Unwired CEO David Spence after he revealed to the Sydney Morning Herald last month intimate details in the TiVo roll out.

Unwired will handle distribution, sales, and service for TiVo in Australia, with the majority of units sold at retail. This is also interesting:

It is expected that consumers who take up the service could end up getting over 100 channels of content for free however the only hitch will be that users will be unable to remove advertising totally with new software set to deliver a commercial as they try to fast forward.

That really just sounds like the ‘billboard’ ads we have in the US, where static image ads may be displayed while fast forwarding through recorded commercials. Which really isn’t such a big deal. It isn’t known if the 30-second skip back door will work in Australia as it does in the US. I’m not sure where the 100 channels of content will come from, since there aren’t that many OTA DVB-T channels. I’m guessing they mean some kind of downloaded content.