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TIVO Distribution Momentum in the United States, Europe, and in Retail Sets the Stage for Strong 2011

As the demand to bring Internet content directly to the television proliferates, TiVo Inc. (NASDAQ: TIVO), a company specialized in advanced television services and digital video recorders (DVRs), continues to solidify its role as the provider of the best consumer experience for television entertainment. The new distribution deals TiVo has signed over the last twelve months, both as a supplier to pay television operators around the world and in the U.S., demonstrate the success the company has had in turning its mastery of the DVR into one of the most elegant and comprehensive solutions for an increasingly complex world of content, devices, and video services.

Naveen Chopra, Senior Vice President, Corporate Development & Strategy, TiVo, said, "The last year has seen the continuation of major changes in how television content is distributed and consumed. At TiVo, we are excited to see our vision, one of a world where virtually any content can be consumed at the time and place consumers desire, continuing to become a reality. Our invention of the DVR over ten years ago was a critical milestone in the evolution of TV and it demonstrated that new viewing paradigms demand real technology innovation along with an unrelenting focus on distilling complex technology down to a simple, elegant solution for mainstream consumers. Since then we have continued to lead the charge to redefine television by being the first to incorporate Internet delivered video-on-demand with traditional linear television services. And now, TiVo represents one of the most comprehensive entertainment experiences out there. Unlike the growing number of partial solutions entering the marketplace, TiVo remains the only way for consumers to get all the content they love in one place, with one box, one user interface, and one remote control. Consumers don’t want to be limited to just iTunes, or Netflix, or Hulu, or Amazon, or their traditional pay television service. These are all critical components of the entertainment experience and we know consumers want it all. With this in mind we have designed a next generation user experience and a suite of technology components that enable the entire world of over-the-top content to be seamlessly integrated with the full breadth of cable and satellite TV."

TiVo’s unique consumer proposition has attracted the attention of numerous pay television operators around the world who have quickly identified the importance of being the provider of the most compelling and comprehensive video product in the market. Over the last year, TiVo has signed deals with a number of operators to deploy TiVo’s software and user experience, representing millions of potential future TiVo subscriptions. TiVo’s ability to offer operators two unique approaches to bringing the TiVo experience to their subscribers has accelerated this success. Today TiVo can port its software to a variety of third party set-top boxes as it is doing in its deals with Virgin Media, Canal Digital, and ONO. It can also allow U.S. operators to convert its retail set-top box product into a quickly deployable and cost effective operator provisioned platform, an approach that enabled both RCN and Suddenlink to rapidly launch advanced video platforms.

Chopra said, "Operators in the U.S. and around the world are asking TiVo to help them develop an advanced television solution that will meet the increasing consumer demand for broadband content right to the TV set, delivered in a way that, unlike many of the recent specialty devices on the market, doesn’t remove or undermine the operator’s role as the primary content distributor."

In the U.S., TiVo is the only deployed hybrid solution available today for cable operators. TiVo currently has deployed solutions with RCN and Suddenlink, with COX and DIRECTV expected to follow in the future.

Outside the U.S., TiVo has deals with operators that will enable it to reach close to seven million potential subscribers in Europe, including deals with Virgin Media, the largest cable operator in the UK, ONO, the largest cable operator in Spain, and Canal Digital, the largest satellite provider in Northern Europe.

Chopra concluded, "TiVo is fast becoming known for so much more than just the DVR as evidenced by the significantly expanded role we play with our distribution partners. In years past, they used TiVo as a premium DVR. Today, they recognize the need to provide a great user interface on every device they serve regardless of whether it is DVR, traditional set top box, or a television set, and have enlisted TiVo to provide this experience."

TiVo also saw a significant increase in sales of its stand-alone retail box compared with the year ago period, which it attributes to growing consumer awareness of TiVo as the most comprehensive television entertainment solution as well as competitive holiday pricing.

 [January 7, 2011]


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