Cable Technology Feature Article
Tivo Adding Subscribers at Record Rates
By Oliver VanDervoort, Contributing Writer
Lost in all the excitement of the battle by cable providers to retain television viewers is the fact that a teaming up of those cable providers and services like Tivo seem to be the best bet. The makers of one of the very first versions of the Digital Video Recorder (DVR) for televisions, the company just released its second quarter revenue report and was happy to point out that the company had seen a huge 41-percent jump in subscribers in that quarter.
The company was only too happy to point out that the subscriber base jumped thanks in large part to brand new dealsit has struck with cable and satellite providers that make the Tivo DVRs less expensive and more attractive to consumers. Not everything was rosy from the report, though it appears that the negatives had been expected while the positives were a welcome surprise for a company that has resided in the background of the cable industry for well over a decade.
Tivo’s CEO Tom Rogers (News - Alert) saysthat his company actually set a new record in the second quarter in regards to gross profit. Unfortunately for the company’s bottom line, they are involved in several court battles, including a particularly mean spirited one with Verizon (News - Alert) that is cutting heavily into profits. Those court costs meant that Tivo actually posted a net loss during the second quarter and the company (who goes to back to trial with Verizon in October) is expecting another net loss in the third quarter.
Despite the legal problems (and assuming they can ride them out) 2012 is looking like it will be an extremely good year for the television recording pioneer. Tivo had a net loss of 33,000 subscribers in 2011, but saw a net gain of more than 230,000 customers in the last quarter alone. Rogers says he believes that his company will end up with a net gain of more than 1 million subscribers by the end of 2012.
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Edited by Rachel Ramsey