TiVo 2006 Annual Report Download - page 12

Table of Contents
Sales and Marketing
Consumer Offerings. We sell subscriptions to the TiVo service directly to consumers who have purchased a TiVo-enabled DVR. We sell TiVo service-
only subscriptions either for a monthly subscription rate of up to $19.95 (with discounts available to subscribers who have multiple subscriptions to the TiVo
service or during special limited promotions), or a pre-pay option between $179 for one-year, $299 for two-years or $399 for three-years (currently a special
limited time offer priced at $299) of TiVo service. We no longer offer new product lifetime service subscriptions for general sale to the public. TiVo-enabled
DVRs are available from major retailers across the United States, including Best Buy, Circuit City, and Radio Shack. To drive sales while managing costs, we
have shared marketing expenses with key retailers, and in some cases, we have offered to share a portion of the subscription revenues.
We also sell a bundled offering of a TiVo-enabled DVR and a subscription to the TiVo service through our direct sales channel. We change pricing for
our TiVo service and TiVo enabled DVRs from time-to-time in response to market conditions and consumer demand. Current pricing offered through our
direct channel is:
• The price for an 80-hr TiVo Series2 DT (dual tuner) DVR and a one-year service commitment is $16.95 a month or $179 prepaid plus a $99.99
box price.
• The price for an 80-hr TiVo Series2 DT and a two-year service commitment is $14.95 a month or $299 prepaid plus a $99.99 box price.
• The price for an 80-hr TiVo Series2 DT and a three-year service commitment is $12.95 a month or $399 (special limited time offer priced at
$299) prepaid plus a $99.99 box price.
Services to Television Service Providers. We also sell our technology and services to television service providers, such as DIRECTV, Comcast, and
Cox who then market (or in the case of Comcast and Cox, plan to market in the future) the TiVo service to their subscribers either directly or, in the case of
DIRECTV, also through major retailers across the United States.
Services to the Advertising Industry. We also sell advertising and audience research measurement services, through a dedicated team of salespeople
and through partnerships with third parties like IRI.
Customer Service and Support
For our TiVo-Owned standalone DVRs, we provide customer support through outsourced service providers as well as our internal customer service
personnel. For our DIRECTV receivers with TiVo service, DIRECTV is primarily responsible for customer support. When launched, Comcast and Cox will
be primarily responsible for customer support for their subscribers to the TiVo service. We expect to provide training and other assistance to Comcast and
Cox.
Individual customers have access to an Internet-based repository for technical information and troubleshooting techniques. They also can obtain support
through other means such as the TiVo website, web forums, email, and telephone support.
We offer a manufacturer's warranty on our TiVo-Owned standalone DVRs of 90 days for labor and one year for parts. For our TiVo Package
subscriptions that include both a TiVo-Owned standalone DVR and a subscription to our service, we extend such manufacturer's warranty for parts only for
the duration of the subscription which may last as long as three years. We contract with third parties to handle warranty repair.
Research and Product Development
Our research and development efforts are focused on designing and developing the components necessary to enable the TiVo service. These activities
include both hardware and software development.
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