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Tivo: A New Product Launch-Replaytv

Autor:   •  October 13, 2015  •  Case Study  •  1,429 Words (6 Pages)  •  571 Views

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Tivo had a new product to launch which satisfied the trifecta-  intensity of liking , new, different and need for fulfilment.

ReplayTV – the competitor had the same concept ready for future release.

                          One solution to strike down the competition at very beginning was the product placement.

Vision and facts :

98 % of the country’s household own a TV

In 1999 78.1 million houto the number of channels seholds spent 34.4 billion to receive cable and 14,5 million households received subscription based satellite tv. These services gave a growing access  of more than 53 channels.

Even though the tv access is huge and the interest in viewership is high, yet the unsatisfaction of the consumers was very evident, because of the unavailability of their favourite shows during their preferred times.  Recording the show on a VCr eventhough was available, the complexity involved in programming the VCR did not allow a lot of consumers to make use of the resource.

Ideal tv deals would be

  1. Availabitly of the show when they wanted.
  2. Shows programmed to suit their personal taste
  3. Pausing , fast forward, slowing down, rewinding any live show to run through their favourite parts over again skip what they aren’t interested in.

TiVo’s Vision- to increase consumers control over television viewing.  

                          TiVo allows the user to search a complete guide of television programs and digitally store between 20 and 60 hrs of desired programming.

Complications : Tivo didn’t have enough funds to manufacture the PVR, hence decided to partner with Sony and Phillips .

Tivo subsidized the production of the  PVR for lower end models under $500, hoping to increase the Speed of Penetration.

It has the monthly fee or the lifetime membership.

Initially the subscription fee would be the company’s primary source of revenue but once the critical mass of consumers adopted TiVo, the subscription service would be the major revenue source.

A value driven television (iTV) was intended to be designed to sell targeted access to advertisers and programmers.

AOL/Time Warner invested more than $240 million

TiVo System:

                         Similar to a high power PC running on a Linux operating System. Hard drive being its important feature(stores the shows in digital manner).

Cost and compatibility considerations, TiVo uses the same hard drives that are usedin desktop computers.

TiVo working : when a program in recorded, the PVR coverts the program into a digital format and then compresses into MPEG II ( similar is used to create DVDs).

The compressed recordings are then stored on the hard drive as separate files, allowing random, nonlinear access to individual programs. The hard drive records and compresses around the clock.The live Tv is digitally processed before being displayed in the TV.

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