Cable Technology Feature Article
Tivo's Cable Operator Customer Revenues Jumps 83 Percent in Q4
By Michael Guta, TMCnet Contributing Writer
When TiVo (News - Alert) was first introduced in 1999 it was a great concept and one that consumers preferred over DVD recorders and the vanishing VCR. Since that time, the consumer electronics industry has introduced many new items, but TiVo is still around. Although the number TiVo-owned subscriptions have declined in recent years, revenue from cable operator customers is seeing an increase.
Multiple system operators (MSOs) around the world are entering distribution deals with TiVo in growing numbers. This accounts for the 83 percent increase in the fourth quarter that ended January 31st, which generated $8.2 million from MSOs. Additionally the company added 222,000 net new customers with this partnership through cable companies during the same quarter totaling 2.12 million. While it made gains in other sectors it lost 13,000 TiVo-owned subscribers which stands at 1.3 million.
TiVo is making great strides outside of the US and one of its biggest MSO customers is Virgin Media (News - Alert) in the UK. Virgin added almost 900,000 net TiVo subs in 2012 which accounts for 35 percent of its video subscriber base. Another European company in Spain, ONO had a strong quarter with TiVo deployments. The service provider companies in the U.S. include GCI (News - Alert), Mediacom Communications, Suddenlink Communications and RCN.
"We are very excited about the growing distribution of TiVo and about the deepening relationships we have with operators around the globe,” said TiVo president and CEO, Tom Rogers (News - Alert).
The revenue the company generates with MSO subscribers is considerably less than with TiVo owned subscribers. The average MSO for the last quarter earned the company $1.36 while the average TiVo own subscriber earned $8.82.
In order to stay relevant in the future TiVo has to find ways to incorporate cloud-based entertainment for the consumer. As cable companies move towards cloud integration the applicability of TiVo to their platform will not be necessary. The company is going to launch TV Everywhere which will provide multiscreen delivery.
Overall TiVo posted revenues of $88.9 million which was up 34 percent from the previous year, but it reported a net loss of $15.8 million compared to the $7.2 million net income a year earlier.
Edited by Amanda Ciccatelli