TiVo 2005 Annual Report Download - page 7

Table of Contents
Our Strategy
Our goal is to generate recurring revenues through the deployment of our branded entertainment services and technology to television viewing
households worldwide. The key elements of our strategy are:
Offer an Increasingly Differentiated Service. Our goal is to lead the market with innovations that expand the value and potential of our subscription
service. We plan to continue to invest in innovation to improve consumer choice, convenience, and control over their home entertainment and to make TiVo
more compelling for both current and potential customers. For example, we expect to launch, later this year, a new service feature called TiVo KidZone,
which will be a personalized TV area where children will be able to find quality live or recorded programming that their parents deem appropriate. We plan to
provide consumers with access to new interactive applications with the ability to receive more content delivered to their TiVo-enabled DVRs over a
broadband connection. We believe that the combination of mobility, entertainment personalization, and broadcast/broadband integration will continue to
enhance the TiVo service.
Diversify our Sources of Revenue. As our subscription base has grown, we have been able to offer interactive advertising capabilities to programmers
and advertisers. We plan to continue developing and enhancing these offerings, which take advantage of the unique tagging, recording, storage, and viewing
capabilities of the TiVo service. Some of our key clients include General Motors, IRI, Nissan Motor Corp., ING, Earthlink, Visa, Novartis, Nautilus, and
Warner Brothers.
Integrate Our Technology. Our strategy focuses on creating, developing, and deploying a software version of the TiVo service that will be executable
on certain third-party DVR platforms in order to promote the mass deployment of devices capable of running the TiVo service. The focus of this effort is
primarily on cable television providers, which are deploying DVR's in increasing numbers. Last year we announced a partnership with Comcast to deploy, in
the future, a software version of the TiVo service on DVR hardware manufactured by Motorola and deployed by Comcast.
Extend and Protect Our Intellectual Property. The convenience, control, and ease of use of the TiVo service is derived largely from the technology we
have developed. We intend to continue to design, develop, and implement innovative technological solutions that leverage and enhance the TiVo service
offering. We have adopted a proactive patent and trademark strategy designed to protect and extend our technology and intellectual property.
Promote and Leverage the TiVo Brand. We believe the strength of the TiVo brand is an advantage in attracting consumers, cable and satellite
television providers, and other customers. In the past, we have dedicated substantial resources to promoting our brand through multiple advertising and
marketing channels, participation in trade shows, sponsoring events, merchandising, and by leveraging strategic relationships.
Our Technology
TiVo has developed a technology portfolio that makes available the TiVo service both on a standalone retail DVR product line as well as on the
integrated set-top boxes of a major satellite television provider. We anticipate making the TiVo service available on set-top boxes of additional cable
television providers in the future. TiVo's technology for enabling the TiVo service includes: the TiVo service client software platform, the TiVo service
infrastructure, and TiVo-enabled DVR hardware design.
TiVo Service Client Software. The TiVo service client software runs on TiVo-enabled DVRs. It consists of operational software required for a TiVo-
enabled DVR to deliver the TiVo service. The software includes system components such as a media-oriented file system, a high-performance transactional
database, an integrated security system, and application components such as media management and user interface. We have enhanced the client software to
support multiple services and applications, such as digital music and photos. The TiVo client software manages interaction with the TiVo service
infrastructure. After the initial set-up of the TiVo service, the TiVo-enabled DVR will automatically connect to the TiVo service infrastructure over a dial-up
or broadband connection to download the program guide data, client software upgrades, Showcases, and other content.
We are currently extending the TiVo service client software to enable future deployment on certain industry standard integrated DVR set-top boxes.
Under the terms of our agreement with Comcast, for example, we currently intend to make the TiVo service available as a software upgrade to the already
installed base of certain Motorola DVRs already deployed by Comcast. We also intend to extend the TiVo service to run on other DVR set-top boxes capable
of supporting Comcast-deployed middleware and the forthcoming Open Cable Application Platform (OCAP) solutions.
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