TiVo 2005 Annual Report Download - page 46

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Table of Contents
We calculate ARPU per month for TiVo-Owned subscriptions by subtracting DIRECTV-related service revenues (which includes DIRECTV
subscription service revenues and DIRECTV-related advertising revenues) from our total reported service revenues and dividing the result by the number of
months in the period. We then divide by Average TiVo-Owned subscriptions for the period, calculated as described above for churn rate. The following table
shows this calculation and reconciles ARPU for TiVo-Owned subscriptions to our reported service and technology revenues:
Fiscal Year Ended January 31,
2006 2005 2004
(In thousands, except ARPU)
TiVo-Owned Average Revenue per Subscription
Service and Technology revenues $ 170,859 $ 115,476 $ 77,357
Less: Technology revenues (3,665) (8,310) (15,797)
Total Service revenues 167,194 107,166 61,560
Less: DIRECTV-related service revenues (32,788) (21,071) (11,624)
TiVo-Owned-related service revenues 134,406 86,095 49,936
Average TiVo-Owned revenues per month 11,201 7,175 4,161
Average TiVo-Owned per month subscriptions 1,269 819 486
TiVo-Owned ARPU per month $ 8.83 $ 8.76 $ 8.57
TiVo-Owned ARPU per month for the fiscal year ended January 31, 2006 increased from fiscal years 2005 and 2004 to $8.83 from $8.76 from $8.57,
respectively. This increase was largely due to increased volume of monthly subscriptions. The impact on ARPU of this increase in monthly subscriptions was
partially offset by two factors: (1) an increase in the number of TiVo-Owned product lifetime subscriptions that reached the end of the four-year period we use
to recognize lifetime subscription revenue; and (2) the impact of our multi-subscription discount, under which some of our recurring revenue subscriptions
pay only $6.95 per month.
We calculate ARPU per month for DIRECTV subscriptions by first subtracting TiVo-Owned-related service revenues (which includes TiVo-Owned
subscription service revenues and TiVo-Owned related advertising revenues) from our total reported service revenues. Then we divide average revenues per
month for DIRECTV-related service revenues by average subscriptions for the period. The following table shows this calculation and reconciles ARPU for
DIRECTV subscriptions to service and technology revenues:
Fiscal Year Ended January 31,
2006 2005 2004
(In thousands, except ARPU)
DIRECTV Average Revenue per Subscription
Service and Technology revenues $ 170,859 $ 115,476 $ 77,357
Less: Technology revenues (3,665) (8,310) (15,797)
Total Service revenues 167,194 107,166 61,560
Less: TiVo-Owned-related service revenues (134,406) (86,095) (49,936)
DIRECTV-related service revenues 32,788 21,071 11,624
Average DIRECTV revenues per month 2,732 1,756 969
Average DIRECTV per month subscriptions 2,376 1,154 377
DIRECTV ARPU per month $ 1.15 $ 1.52 $ 2.57
ARPU per month for DIRECTV subscriptions for the fiscal year ended January 31, 2006 decreased from the same-year prior period to $1.15 from $1.52
and $2.57, respectively. The continued decrease in ARPU per month for DIRECTV is the result of the addition of new DIRECTV subscriptions. While these
more recent DIRECTV subscription additions offer lower recurring revenues than subscriptions added during earlier phases of our DIRECTV relationship,
they result in more attractive percent margins because they involve limited or no acquisition costs and lower recurring expenses.
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