Tivo Inc, an assignment
1.0 Introduction
The case is about the introduction of Tivo, a new service that provides the TV viewer the flexibility to watch what they want when. The product is expected to change the way people watch TV by offering them the flexibility in programming, skipping commercials, pausing live TV and recording programmes for future viewing.
In addition, the service offers captures the subscriber's preferences and can automatically record programmes that are considered to be in this category.
To obtain this service, the subscriber has to buy a Tivo set top box and the Tivo service. The box is installed between the broadcast feed and the television set and is able to store up to 30seconds of live programs before sending to the TV. Although this introduces a delay in the signal, it ensures that the viewer is able to rewind and pause live TV, skip commercials, etc.
While the product provides great benefits to the subscribers, and in fact 72% of the early adopters find the product very great, there are a number of concerns too.
The Television and the cable network operators are concerned with the possibility of this service becoming a threat to their industry, similar to the concerns they had during the introduction of the remote control.
Advertisers are also concerned that that if users must skip adverts, it will be difficult for the producers of consumer goods to drive their sales.
These concerns are however addresses by the possibility of taking advantage of the new technology to effectively reach the consumers.
2.0 A statement if the problem
The market penetration of TiVo has been very poor. Fourteen months after its introduction only 0.04% penetration has been achieved out of th ...