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TiVo thinking outside the "box" to raise the bottom line

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TiVoWhile TiVo may have revolutionized television, and even coined a new word as the word TiVo has become synonymous with the digital video recording technology it pioneered. But a company based on a single technology, revolutionary though it may be, can struggle. And since its inception in 1999, TiVo has operated in the red. With other companies undercutting TiVo in the DVR market, the company lashed out at everyone and anyone for infringing on their intellectual ideas.

This New York Times article details that on November 29, the Patent and Trademark Office recognized TiVo's patent on the technology allowing viewers to watch one show while recording another. Couple that with a smaller quarterly loss than anticipated and the company sees a bright future.

To facilitate this, TiVo has been making strides to appease frustrated advertisers, scared that viewers are skipping their commercials, as well as making alliances with those same cable/satellite providers with rival DVRs. CEO of TiVo Tom Rogers said, "We are very much a technology company. At the same time, in the last year and a half we've substantially moved in the direction of becoming a media company." TiVo has been trying to make amends with its industry brethren by offering second-by-second ratings analysis of watched commercials as well as looking into static banners that will run even during fast-forwarded commercials.

DVR is a growing segment of the industry, as is the whole notion of "TV On Demand" and TiVo is well positioned to stay at the forefront of how to marry this new way of watching television with the old way of paying for it (advertisement). Other recent strategic alliances include one with Music Choice, which will allow TiVo subscribers to choose from a library of thousands of music videos what to watch and when to watch, as well as Photobucket and Picasa Web Albums for photo sharing and Nero for deeper computer integration of the TiVo software. As the television moves closer and closer to being the multimedia center of the household, TiVo looks pretty well positioned to be a key part of making that a reality. And making bucketloads of cash in the process.

And if all of this means that I don't have to stop playing online video games to catch the latest episodes of Samantha Who? and Reaper, and that I can receive pictures of my nephews without having to get up off my butt, and I can watch the latest Britney Spears trainwreck video, then I am in fanboy heaven!

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