TiVo 2013 Annual Report Download - page 9

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We believe we have created a unique set of technologies, products, and services that meet the needs of consumers, television service
providers, and the advertising community. Our goal is to change the way consumers access and watch linear television, on-demand
television, and broadband video by offering a best in class user experience and search and discovery services to generate revenue through
the licensing of both our TiVo branded services and technology and non-branded services and technology delivered by Digitalsmiths to
television viewing households worldwide.
Provide Compelling, Easy-to-Use Consumer Offering . Our advanced television solutions have an easy, intuitive user interface and
many features that we believe dramatically improve a consumer's television viewing experience. Our advanced television solutions can
support linear television delivered through analog cable, digital cable, satellite, from the cloud, or over-the-air, television service provider
VOD, and broadband video. Our technology enables consumers to find and watch their favorite content, whether it is on TV, VOD, or
broadband, and helps them discover new programming through features that search and browse for content by subject, title, genre, actor,
director, or channel, enjoy access to extra content via broadband and comprehensive episode guides, as well as suggesting programs that
consumers may like through a variety of TiVo recommendation features.
Offer Increasingly Differentiated Features and Services . Our goal is to lead the market with innovations that expand the value
and potential of our advanced television services. We plan to continue to invest significant resources in innovation to improve consumer
choice, convenience, and control over their home entertainment and to make our services more compelling for both current and potential
customers. For example, we have launched TiVo products and applications for Android-enabled smart phones and tablets and iOS-enabled
smartphones and tablets that allow viewers to control their set-top boxes as well as, currently with respect to iOS-enabled devices and in the
future with respect to Android-enabled devices, to consume video both inside and outside the home. We continue to update the TiVo service
with new audio and video applications such as Spotify and Hulu. These applications give consumers a much richer and more powerful way
to explore all of the content available to them and expand the population of devices upon which we can deploy our services. We expect that a
significant portion of our future product development efforts will be focused on broadband functionality, enabling the TiVo experience on
additional consumer device and screens, cloud-based services, personalization, and integration of new discovery paradigms like social
network recommendations.
Develop Solutions for Television Service Providers . Part of our strategy focuses on developing versions of the TiVo service that can
be deployed by third-parties (typically television service providers) in conjunction with TiVo and third-party designed set-top boxes and other
consumer electronic devices such as tablets in order to promote the mass deployment of devices utilizing our technology. For example, we
are able to deliver a set-top box product to our television service provider customers that combines within one integrated user interface: on-
demand viewing of linear broadcast television delivered by the television service provider through a built in DVR; access to on-demand
viewing of a television service provider's own VOD service; and access to broadband delivered content (or so called over-the-top content).
Additionally, we believe our retail business uniquely positions us versus other vendors to license our technology to television service
providers as we understand consumer behavior first-hand and are able to innovate at a faster pace. It allows us to leverage our research and
development across our direct to consumer products as well as our products and services provided to television service providers.
Extend TiVo Products Beyond the U.S. Market. We also believe there is a large opportunity to deploy the TiVo service and technology
outside the United States. For example, in the United Kingdom, Virgin Media (Virgin), the United Kingdom's largest cable operator, recently
connected its two millionth TiVo customer. To date, we have MSO subscriptions to the TiVo service in the geographies of Australia, Mexico,
New Zealand, Spain, Sweden, and Taiwan as well.Our solutions have the ability to integrate broadband offerings for cable, satellite, and
over-the-air television service providers and our strategy is to sign additional international partnerships and distribution agreements in the
future. Typically, the parties distributing the TiVo service under these agreements are subject to significant deployment and marketing
commitments.
Extend the TiVo Service to the Cloud. TiVo has been transitioning its service to the cloud over the past several years, and allowing
TiVo to offer its products on a multitude of devices beyond the set-top box. Further, TiVo is in the process of developing a network DVR
service, which will allow Pay TV to offer storage in the cloud reducing their expenditures on hardware, allowing recorded shows to be
delivered to more devices, and enabling features and controls for both consumers and operators that weren’t possible with a set-top box based
DVR. Additionally, the recent acquisition of Digitalsmiths enables TiVo to offer elements of its service through non-TiVo branded user
experiences.
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