TiVo 2006 Annual Report Download - page 7

Table of Contents
programming for their families. In addition, the Series3 HD DMR provides users with dual tuner, high definition, and CableCARD functionalities. We believe
these advanced features help to differentiate the TiVo service from other competitive DVR offerings.
Integrating Broadband and Broadcast Capabilities. When attached to a broadband connection, a TiVo-enabled DVR with the TiVo services provides
access to additional features. The TiVo service enables broadband applications such as Yahoo! Photos that allows users to access photos stored in Yahoo!
Photos from their television or the ability to receive premium content through our relationship with Amazon Unbox. Other broadband applications include
access to home movies, downloadable internet video, internet radio, pod casting, theatrical movie listings, or games. The TiVo service also enables the
delivery of video content through an internet connection expanding the consumer's access to video content of interest to them.
Portable Technology Platform. We are designing our technology for use both in standalone DVRs and in devices that integrate DVR technology and
other functionality, such as digital cable and satellite set-top boxes, and, in the past, DVD recorders. This allows us to offer consumer electronics
manufacturers and television distributors a branded, highly respected DVR service that they can in turn offer to their customers.
Advanced Advertising and Promotion Solutions. We offer a variety of solutions to the advertising industry. Through our Showcases, interactive tags,
and other advertising and promotion solutions, we distribute video content designed to entertain consumers while providing a promotional vehicle for our
advertising and promotion customers. For example, movie studios pay us to deliver previews of upcoming films, consumer product companies pay us to
deliver their product and services content, and television companies pay us to promote upcoming programs. Additionally, we offer advertisers, advertising
agencies, and television networks second-by-second audience research measurement reporting.
Our Strategy
Our goal is to change the way consumers watch television, broadband video, and advertising and to generate 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, in fiscal year 2007 we launched, a new service feature called TiVo KidZone, which is
a personalized TV area where children are able to find quality live or recorded programming that their parents deem appropriate. We 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 such as
premium film and television content from Amazon Unbox and professionally produced program content from providers such as New York Times, CNET, and
the NBA. 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 Toyota Motors, General Motors, BMW, GE, CBS TV, Showtime, Warner Brothers, Sony, E-
Trade, Sprint, Intel, IRI, and Nielsen.
Integrate Our Technology. Part of 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 current focus
of this effort is primarily on cable television providers, which are deploying DVR's in
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