TiVo 2006 Annual Report Download - page 25

Table of Contents
We face risks in connection with our licensing and marketing agreements with Comcast and Cox for the development of a TiVo-branded DVR
software solution and advertising management system for deployment to Comcast and Cox customers.
We may never develop the licensed TiVo-branded DVR software solution and/or advertising management system. Pursuant to our agreement with
Comcast, development and deployment of the TiVo service software solution is targeted to occur by June 30, 2007 or such later date as the parties may agree.
Development and deployment of the TiVo advertising management system is targeted to begin after the second anniversary of this agreement, by February 15,
2008, unless the parties agree to a later date. Similarly, there are separate deadlines associated with our development and deployment of the TiVo service
software solution and advertising management system in our agreement with Cox. We could be subject to certain consequences, including, but not limited to,
termination of these agreements in the event development of the TiVo service software solution and the TiVo advertising management system are not
completed by the agreed upon deadlines. Our ability to develop and enable deployment by Comcast and Cox of the TiVo service software solution and
advertising management system by the agreed upon deadlines could be delayed or prevented by technological problems or a lack of available resources to
meet our obligations under the agreement. In the event we fail to deliver either the TiVo service software solution and/or advertising management system to
Comcast or Cox by the agreed upon deadlines, our agreements with Comcast and/or Cox could be terminated and our business could be harmed.
We may not be successful in our agreements with Comcast and Cox. Our ability to benefit from our agreements with Comcast and Cox are dependent
upon the mass-deployment and adoption of the TiVo service software solution by Comcast and Cox customers. Additionally, our ability to benefit from our
agreements with Comcast and Cox are dependent upon our ability to successfully sell advertising to third parties. Furthermore, Comcast and Cox each have
the right to receive certain most favored terms from us such that if we were to license similar products and services to other parties at more attractive terms
than what Comcast or Cox receive under their respective agreements with us, they may be entitled to receive the new more favorable terms. Additionally,
Comcast and Cox each have the right to terminate its agreement with us in the event we are subject to certain specified change of control transactions
involving companies specified in their respective agreements. In the event any of these events occurred, we would have difficulty generating revenues under
these agreements and our business could be harmed.
If we are unable to introduce new products or services, or if our new products and services are unsuccessful, the growth in our subscription
base and revenues may suffer.
To attract and retain subscriptions and generate revenues, we must continue to maintain and add to our functionality and content and introduce products
and services which embody new technologies and, in some instances, new industry standards. This challenge will require hardware and software
improvements, as well as maintaining and adding new collaborations with programmers, advertisers, network operators, hardware manufacturers, and other
strategic partners. These activities require significant time and resources and may require us to develop and promote new ways of generating revenue with
established companies in the television industry. These companies include television advertisers, cable and satellite network operators, electronic commerce
companies, and consumer electronics manufacturers. In each of these examples, a small number of large companies dominate a major portion of the market
and may be reluctant to work with us to develop new products and services for digital video recorders as well as maintain our current functionality. If we are
unable to maintain and further develop and improve the TiVo service or maintain and expand our operations in a cost-effective or timely manner, our ability
to attract and retain customers and generate revenue will suffer.
We face risks in the provision of an entertainment offering involving the distribution of digital content.
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