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Okay... is TiVo, Inc serious? Lifetime for TiVoHD

Discussion in 'The OT' started by Earl Bonovich, Apr 25, 2008.

  1. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    So.. in my daily checking of all the major tech info sites...
    I see this one today on EngadgetHD

    http://www.engadgethd.com/2008/04/25/tivos-blue-moon-special-tivo-hd-lifetime-service-for-698/

    TiVo, Inc... is now offering (for a limited time)... LIFETIME service for TiVoHD...

    At the rate of: $698.99 (you have to love the psychological $1.01 discount so that it is not $700... anyway)

    This is not a jab at the TiVo technology, and has nothing to do with the technology of TiVo...

    This is a big... Huh? at TiVo, Inc...

    What are they thinking? Are they that desperate for cash right now, that they need a big influx in cold hard cash?

    According to TiVo.Com... the best pre-paid monthly plan... will get you service for $8.31 a month.... It would take you a little over 84 months... to recoup the cost of the lifetime at that rate... 7 years... so let's knock that down to 6 years... at a better discounted rate if you could pre-pay for 6 years...

    On DirecTV at least... for each DVR it is basically $5.99 a month for the first DVR, and $4.99 for each one after that. (The $5.99 on the first one is the DVR fee, the $4.99 for each one after is the mirror/lease fee)

    So... throw out the initial upfront costs... which can be anything between $0 and $199 per DVR on DirecTV... and $0 and $299 for a TiVoHD (depending of vendors, specials, sales, rebates, ect)....

    And for the sake of argument... individual carrier prices... are with in 10% of each other (if you compare as close as you can get plans to one another... that is about right )

    So...just focusing on the monthly service fees.

    It would take you roughly 117 months on DirecTV at $5.99 a month to equal the lifetime service fee. That is almost 10 years...... who thinks the technology is going to be the same in 10 years? On any platform.

    There is no guarantee either that the lifetime will transfer (even though they have done it)... but for how long is it going to be transferable?

    So again... this is not about the technology of TiVo....
    But more so about TiVo, inc... what in the world are they thinking?

    Given there are still big questions about the compatibility with Switched Video on cable-co's... and that "dongle" they have talked about to make it compatible is no where to be seen yet...
     
  2. Lee L

    Lee L Hall Of Fame

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    Well, they used to have it at $299 and when they discontinued it, they said that they were not making money like they should on it because people kept old crap TiVo boxes for years past their expected EOL. I am pretty sure people will still pay $300 for a Series 1 box on eBay.

    They just priced it high enough to make some $$ this time.
     
  3. mhayes70

    mhayes70 New Member

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    :lol: Yeah, what are they thinking. 10 years. We are lucky if current technology last one year.
     
  4. glennb

    glennb Hall Of Fame

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    I'm surprised TiVo is still in business with the competition of the DIRECTV HD DVR, the DISH NETWORK HD DVR, and cable company HD DVRs. A lot of people probably prefer to get a DVR from their TV service provider instead of going out and buying a TiVo and then having to pay a TiVo fee every month just to use the darn thing.
     
  5. Mavrick

    Mavrick Hall Of Fame

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    Okay Here is a price breakdown for each item in the offer:

    Tivo HD DVR: $299.00
    Tivo Wireless Network Adapter: $59.99
    Tivo Lifetime Service "If they still sold it seperate": $299.00
    Total Combined Price: $657.99

    Total amount of markup for this package: $41.00
     
  6. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    You forgot to inlcude the TiVo plush doll...

    And the Tivo Wireless Network Adapter... how much is that bad-boy pre-marked up...

    Either way... if you knocked the cost down to $600... it would still take over 5 years to recoup on TiVo, Inc... and 8+ on DirecTV... (Can someone do the math for the other major carriers... )
     
  7. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    TiVoHD unit is $299 list at TiVo.com
    TiVo Series 3 I don't think is being produced anymore.
     
  8. bidger

    bidger Hall Of Fame

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    I received the e-mail for the Blue Moon special and scratched my head. Don't see how it's a great deal, but if you mention it on the TCF, I'm sure they'll find it one. I know that some TiVotees fight it when they're compared to Apple fans, but I see the parallel. They'll pay more for what they consider infinitely superior technology. But, I've seen the TiVo HD priced at ~ $240 on some sites, even if you add $40 for the adapter (more reasonable than the $60 TiVo wants), it's under $300, so you're paying $400 for service on the unit.

    I believe TiVo overvalues DVR functionality in that to add a second TiVo to your account, you're still paying more than what DIRECTV charges you for the first DVR. I realize that you can do more with it than standard DVR, but I can say the same for my MCE 2005 PC and I don't have to pay a sub to do so.
     
  9. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    Thanks for that post bidger... I didn't connect the dots... that the price included the TiVoHD in the price...

    So let's quickly redo the math... and knock out the $300 list price for the unit.

    That leaves $400 for lifetime.

    Still would take: over 5 years to offset the price of the DirecTV DVR.
    Still would take: over 4 years to offset the $8 a month rate for TiVo service

    And that if you don't account for any promotions or deals on the hardware up-front cost.

    So even if you did have to contract with DirecTV for 2 years... you are basically contracting with TiVo for at least 4 to offset the cost...

    Once you get past your return date.
     
  10. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    It may also be an attempt to set a price point ... with no intent of actually charging customers that much (unless the customer is gullible enough to buy such a deal).

    By having a price point they have an answer for those demanding a "forever" price and could use this price in negotiations with DISH or others who may license Tivo technology in the future. This may be more about charging DISH $698.99 per millions of DVRs for a lifetime license than charging customers.
     
  11. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    And that is why we have a discussion forum...

    Didn't think of that... good point.
     
  12. Cholly

    Cholly Old Guys Rule! DBSTalk Club

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    Look at things another way: I bought the TiVo HD DVR and have Time Warner cable. With the TiVo, I have one multistream CableCard for digital connectivity. The CableCard rents for $1.75/month, compared to around $14/month for TW's Scientific Atlanta 8300HD DVR -- a savings of around $12/month in cable costs. The lifetime service therefore puts me ahead of the game in less than 3 years.
    Yes, it would be even cheaper if I opted for the 3 year prepay in retrospect.

    We have 4 TiVo DVR's in our home: a Philips Series 1, a Series 2, a Series 3 and an HD TiVo. All but the Philips have lifetime service.
     

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