Tivo: Pioneering the Interactive Television



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Code : BSM0007

Year :
2004

Industry : Engineering, Electrical and Electronics

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Founded in 1997, California-based TiVo Inc., pioneered the personal television industry with its product TiVo, a Digital Video Recorder (DVR). TiVo came as an accessory that could be attached as a conduit to the television and satellite cable so that television viewers could pause and rewind television broadcasts by recording video streams to the DVRís hard drive. TiVo started as amanufacturing firmand gradually evolved to become a service and technology provider. TiVoís DVR became a hit as it offered the TV viewers options to pause, rewind and record live shows according to the schedule they preferred. Subscribers to TiVoís service grew expoentially from nil when it started, to nearly 1.3 million, and generated revenues of $77.35million for the fiscal year ended January 31st 2004. The company had set itself ambitious goals of 10million subscribers, 75%annual revenue growth, and 40%operatingmargin by the end of 2006. The industry is expected to grow to nearly 25million subscribers by 2008, given that the number of households in the US is 105 million.

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