Tivo Inc, an assignment
1.0 Introduction
The case is about the introduction of Tivo, a new service that provides the TV viewer the flexibility to watch what they want when. The product is expected to change the way people watch TV by offering them the flexibility in programming, skipping commercials, pausing live TV and recording programmes for future viewing.
In addition, the service offers captures the subscriber's preferences and can automatically record programmes that are considered to be in this category.
To obtain this service, the subscriber has to buy a Tivo set top box and the Tivo service. The box is installed between the broadcast feed and the television set and is able to store up to 30seconds of live programs before sending to the TV. Although this introduces a delay in the signal, it ensures that the viewer is able to rewind and pause live TV, skip commercials, etc.
While the product provides great benefits to the subscribers, and in fact 72% of the early adopters find the product very great, there are a number of concerns too.
The Television and the cable network operators are concerned with the possibility of this service becoming a threat to their industry, similar to the concerns they had during the introduction of the remote control.
Advertisers are also concerned that that if users must skip adverts, it will be difficult for the producers of consumer goods to drive their sales.
These concerns are however addresses by the possibility of taking advantage of the new technology to effectively reach the consumers.
2.0 A statement if the problem
The market penetration of TiVo has been very poor. Fourteen months after its introduction only 0.04% penetration has been achieved out of the total of 102million TV watching population. This is also reflected in the poor revenue position of the company. Exhibit 3 shows that the company recorded a loss every quarter since the introduction of the product in September 1999 and has been getting worse.
3.0 Issues from the case
3.1 The Product
TiVo is a combination of a set top box and service. Users will have to buy a box and subscribe separately for the service.
The product allows the user a lot of flexibility in watching TV with the following benefits:
Alternative to VCR; no video tapes needed and longer recording time.
Better recording quality due to digital technology.
Ability to pause live TV and replay instantly without missing subsequent programs. This deals with the possibility of distractions while watching favourite programmes.
A third method is to program all cable boxes from the headend to display a
Due to compression, TV audio and video require less bandwidth and multiple digital TV channels can fit unto one satellite transponder as oppose to a single analogue channel occupying the whole transmission line.
The data compiled by the Nielsen Media Research is essential to TV programming across the United States and in Canada. It monitors television ratings and estimates audience sizes by providing the highest quality of accuracy, allowing the television marketplace to function effectively. This information provides programmers and commercial advertisers with the awareness of people’s viewing habits. Depending on air times and the popularity of certain shows, the station calculates the advertising fees that generate a majority of its revenue.
I think that this case would have been hard to prevent. Technology often causes us as a society to create appropriate regulation for the new types of issues that arise with change. This issue is inevitably going to arise. DISH Network embraces this by placing technological advances at the top of its business strategy.
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This lesson will address the real world application that people face when trying to decide what type of entertainment package they are going to purchase for their home entertainment pleasure. The students will research the different television entertainment packages from the local cable provider, Directv®, and Dish Network®. They will take the basic package and develop a formula using the slope-intercept form (y = mx + b) and graph the corresponding line. When this is completed, they will then add the additional packages they would like to include. For example, the Extra Innings®, Hockey, FIFA Cup®,...
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27 Jan. 2012. Greenblatt, Alan. “Television's Future.” CQ Researcher, Vol. 17 (2007, February 16): 145-168.
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