Tivo Case Study Tv's Case

861 Words 4 Pages
TiVo was a service that gives consumers the ability to choose what to watch and when to watch. It was also the first digital video recorder, and put the control into the consumers’ hands instead of the networkers’. However, TiVo is best suited for networkers, as TiVo failed to market towards consumers and receive much recognition; instead, TiVo successfully partnered with networks to monitor consumer watch patterns and properly deliver ads and content.
To consumers, TiVo was a liberating device that gave them control over which shows they wanted to watch and when they wanted to watch. Instead of relying on networkers to determine times, consumers were able to manage their own preferences. Furthermore, consumers were given the ability to skip
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TiVo’s new features offered consumers the opportunity to not be limited by networkers. However, changing consumer habits was extremely difficult. Most consumers are satisfied if a product is “good enough,” so they do not see a reason to switch. In TiVo’s case, on-demand television was new, but few really switched. Moreover, TiVo’s marketing campaign did not succeed as it was more difficult to explain the features of TiVo than to experience them, generating limited interest. TiVo’s financials reveal the great investment into sales and marketing. Yet, TiVo still experienced tremendous net losses every single quarter from September 1999 to June 2000. Thus, TiVo attempted to change mass consumer behavior but failed; it did not achieve product market fit. Although its users were satisfied and ninety percent would refer the product, there were few early adopters. TiVo first tried to find early adopters but research showed that few were willing to actually make the investment. Additionally, early adopters did convince many others to make the purchase. The price for the product was also high, originally costing $999, turning away lower and middle-class consumers who could not afford to pay. Consequently, TiVo could not generate revenue or profit and awareness of its product was low. Even though it was the first product to launch and enter the market, TiVo faced strong …show more content…
Since TiVo used personalized advertising and tracked user preferences through the shows they watched and like reactions that networks could use to schedule popular shows at prime times to increase viewers and adjust advertising to make it more effective. Tracking behavioral patterns allowed networks to market more effectively and predict audience sizes and demographics. Furthermore, TiVo’s season pass, retained more viewers and made committing to a show much easier. As a result, networks experienced increased viewers and were able to match users with their preferences and provide more personalized advertising and suggestions, increasing satisfaction. By partnering with networks, TiVo was able to give networks data that was previously difficult to attain. Networks could now properly target their viewers and suggest items that would eventually increase ad effectiveness and revenue. Consumers would also view TiVo as a fit, meeting all their needs from recommending shows to advertising products they were interested in. In turn, consumer opinions would increase as would TiVo’s consumer base since high satisfaction rates naturally increased publicity and help to build the brand. Thus, the relationship between TiVo and networks was mutually beneficial creating a win-win situation that could be tapped into many times. However, the relationship between TiVo

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