TiVo a disruptive or a sustaining technology on the fact coming from the article, TiVo iS a disruptive technology * TiVo did not seek to become a media portal or a content aggregator. Instead, it would act primarily as a “facilitator” to third party content distributors. At the core of these offerings was Tivocast, a feature that let users access video contents feeds through main TiVo menu Two push Into broadband content distribution. TiVo could deliver such content only users who linked their TiVo devices to a broadband onnection.
In mid-2007, about 650,000 users fell Into that category, although an Increasing percentage ot new subscribers were connecting to TIVO Vla broadband (usually through a wireless connection). In addition. TiVo could offer broadband content only to its retail customers Mass distribution partners. according to TiVo leaders, did not yet have the ability to transmit TiVo-controlled content through their delivery networks. TiVo understood the challenge of pursing opportunities in so many fields. each with its own business model.
Nonetheless. the vision required TiVo to sustain operation on all of these fronts at least until the company could clarify which of its bets were right ones. What was TiVoS strategy in the initial years of it operation? TiVcfs goal is to change the way consumers watch television, broadband video. and advertising and to generate revenues through the deployment of its entertainment services and technology to television viewing households worldwide.
The key elements of TiVo strategy initial years of its operation are: Sales and distribution: Stand-Alone sales and Mass distribution * Diversify Sources of Revenue: AS TiVo’S subscription base is large, it can offer interactive advertising capabilities to programmers and advertisers, Which take advantage Of the unique tagging, recording, storage, and viewing capabilities Of the TiVo service.
* Audience Research and Measurement: TiVo’S ability to track users’ Viewing habits opened up another promising business line for the company. In June 2006, TiVo launched its Audience Research and Measurement (ARM) unit, which expanded the company’s existing product line in this area. Its core ARM products was the commercial Viewership Report, which charted hot. ers watched – or did not watch – commercial content. Software and Intellectual Property: Protecting and, where possible, monetizing Intellectual property (IP) had become an increasingly vital element of TiVo’s strategy.
International Operation and branding: the strength of the TiVo brand Is an advantage in attracting consumers. cable and satellite television providers, and other customers. Comcast and Cox would promote and deploy TiVo-branded DVR software to their subscribers.There is a large opportunity to leverage the TiVo service and technology outside the united States. What have been the key successes and first mover – Due to the first mover in this market, it took time and money to copy this advantage. The first version of its product/service was fully loaded with all the innovative additional features that maximized the viewer’s experience. – TiVo wanted to grow speedily within this new segment by looking for partnerships with TV distribution. TiVo could also increase its speed to market by focusing on developing its service and licensing its hardware technology to large Consumer Electronic ompanies.
What have been the key failures and weakness of this strategy? Although TiVo has their advantage of first mover, they has to face with many other disadvantage of one. There are a lot of other competitors which will try to copy model and invest more and more capital. The competitors also take advantage from the failures from TiVo to improve their products. Stand-Alone DVR sales: To become stand-alone TiVo customers, consumers first had to buy a TiVo DVR either directly from the company or from a CE retailer. They then had to subscribe to the TiVo service on either a monthly or a multi-year basis. A TiVo DVR was virtually worthless without that service. This model were not in favor of customers because it was not flexible.
What should TiVo do going forward? What strategy do you recommend and why? – Enrich media content of product: cooperates with film maker to have the right to distribute through TiVo network. – On-cloud storage: no more needed to be stored in the HDD. The cloud technology helps TiVo and customers inherited low cost for the products. – Optimization tools for their products: customization or internet connection optimization are the best examples which customers often looking for an online solution.