TiVo records subs increase for first time in four years
Joseph O'Halloran ©RapidTVNews | 24-11-2011 Despite the fact that the company is ubiquitously known to the point of becoming a verb like Hoover, TiVo has just recorded its first increase in total subscriptions since 2007.
For its third quarter ended 32 October 31 2011, TiVo reported total net subscriptions of 2.04 million, with approximately 117,000 additions, a huge swing-around compared with the 33,000 subscription losses in the previous quarter.
For the third quarter, the digital video recorder (DVR) pioneer posted service and technology revenues of $51.8 million, up 25% year-over-year. The company had issued a guidance of $49 million to $51 million, $41.3 million for the same quarter in 2010 and $49.6 million in Q2 2011.
However, TiVo reported a net loss of $24.5 million, compared to guidance of a net loss of $27-29 million and a net loss of $20.6 million in the same quarter last year.
The subs growth is largely attributable to major contract wins with operators over the last few months in particular with Virgin Media in the UK who deployed TiVo-based services to more than 220,000 subscribers; RCN expanding its TiVo product offering through the deployment of a whole-home solution; live implementations at Spanish operators ONO and Grande. Charter Communications will also begin initial deployments shortly and DirecTV intends to launch its TiVo offering in select markets in December with a nationwide rollout to follow early in 2012.
Commented TiVo President and CEO Tom Rogers: "Our efforts to get TiVo in more homes globally continues to accelerate…Our mass deployment efforts are proving successful and gaining momentum with pay-TV operators worldwide. These operators recognise the need to retain their position as the key providers of a video experience for consumers…We believe that penetration within our current distribution deals and potential new deployment deals along with stabilising our TiVo-Owned business, where churn has slowed and new subscriptions have come in at much higher subscription fees, is setting the foundation for the long-term growth.”
Going forward, TiVo says that it will focus on four key areas, namely executing on current distribution deals; signing new distribution deals; reducing R&D and litigation spend over time; protecting our intellectual property.