After months of planning, the TiVo and the Seven Media Group are preparing to launch TiVo service in Australia. And in a completely unexpected turn of events, the companies have decided to eliminate the monthly subscription fee for TiVo service.
The service has been held up for a while due to program guide licensing issues in Australia. A personal video recorder isn't much good if you can't access TV listings for all the major networks. Now it looks like most of those wrinkles have been worked out, but TiVo faces competition from Foxtel, another PVR maker in Australia. In order to stay competitive, TiVo will be offering service free of charge.
In order to make up some of the lost subscription revenue, a TiVo box will cost Australian customers $500 AUD, which is about $482 US. That's cheaper than a US box with product lifetime service, but significantly more expensive than a standard TiVo HD unit with monthly service.
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Reader Comments (Page 1 of 1)
5-22-2008 @ 9:27AM
Linda Cameron said...
That doesn't seem fair to TiVo subscribers elsewhere. I would jump at that deal here.
Reply
5-23-2008 @ 8:14AM
MegaZone said...
TiVo isn't the one offering the box in Australia, Seven Network is. Seven is the one who sets the pricing there, and they must feel this is the right move for them. Unlike TiVo, where the box and service is their business, TiVo is just one small part of Seven's overall competitive strategy. So they may be willing to make less on TiVo, maybe even a loss, to improve their competitive standing. And they do plan to use TiVo to deliver additional content via broadband - which they also have a hand in selling - and they could charge for that content as another revenue stream.