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First, you are mistaken in your assumption that the $10 or $13 fee for TiVo or UTV is for guide data. DirecTiVos and UTVs use Directvs own enhanced guide data, downloaded via satellite 24/7, and they only need to call TiVo once a month to confirm service. SA TiVos use dial-up connections to a local UUNET for guide data so they call nearly every day, but it's the same guide data Tribune supplies to everyone, so for a SA TiVo your paying for the necessary download, not for the info itself (exactly).Originally posted by Kenster
This justification doesn't work when you can get a free television guide, complete with VCR+ codes, in your Sunday newspaper. I, for one, would love to have a UTV, or DirecTivo, but don't think it's worth $10 to $13 per month for a SAT fed program guide. Since there is already a program guide that comes with D*TV service, why does that not work with UTV, or DirecTivo?
Second, the extra $10 a month (or $250 one-time fee) is for use of TiVo software, a sort of licensing agreement. It is set up this way to get the unit into a store and sell it at a lower out-of-pocket price, then get the user to subscribe to the service that uses the hardware to make money on the back-end - the exact same way cell phones have been sold for years.
TiVo could have sold the units like RePlay does - $700 to $1000 covers hardware and subscription/software license costs in one shot. Nobody would have bought them at that price, so they cut the license cost out of the shelf price and sold them for $300 - $500, then gave people options - 1) Pay $250 once and use it until it dies or 2) Pay $10 a month (now $13 on SAs) and use it until you sell it or throw it away. When the DirecTiVos came out, they allowed ALL DTiVos on the same account to be used for a single $10 monthly fee or a single $250 "lifetime" fee since they dont require as much support from TiVo.
A TiVo is a helluva lot more than a glorified VCR, even one with the over-rated VCR+. R&D costs to make a TiVo do what it does have been/still are expensive (and it works damn near flawlessly). After using their system for 5 months, the $10 I pay to Directv to use my 2 DTiVos is the most satisfying part of my Directv bill - I feel I actually get my $10 worth. A year ago I thought paying $10 to record TV was ridiculous, but TiVo's Season Passes, Wishlists, tremendous search capabilities, commercial skip, live buffering - the list goes on, but all these have shown me that I never want to go back to watching TV the old way ever again .