Monday, August 09, 2004

TiVo's Marketing Strategy - Becoming a platform

For months I have been calling for TiVo to lower prices and broaden their distribution if they want to survive. Today the company announced that they have lowered prices and extended distribution. The company will now offer a rebate of $100 on each unit sold, making the 40 hour series 2 unit only $99. The company will also start selling Humax branded recorders at Sam's Club... an important step in getting broader distribution.

As I have stated before, the company has a finite window to build a user base from which they will launch future services. While not exactly possible due to channel conflict, but optimally, I believe the company should be giving away their 40 hour unit for free to really get a user base out. Soon I expect for them to announce a video on demand alliance with Netflix, who needs a way to reach TVs in the home.

No comments: