TiVo 2008 Annual Report Download - page 9

Table of Contents
this area will bring the most significant enhancements to the TiVo service in the areas of mobility, entertainment personalization, and broadcast/broadband
integration. We also offer a set of unique features to service providers deploying the TiVo service, to help them maximize the value of their service offerings
to their subscribers. These market-leading features include powerful search and discovery capabilities that integrate not only regular linear television content
but also Video On Demand content, including innovative means of highlighting HD content throughout the user interface. The TiVo application can be
downloaded directly to certain existing cable operators' set-top boxes without the need for new hardware or a service call.
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 increasing numbers. We have announced partnerships with Comcast
and Cox to deploy a software version of the TiVo service to run on DVR hardware manufactured by a variety of set-top box manufacturers. During fiscal year
2009, the TiVo service on Comcast launched in additional New England markets and based on Comcast's public statements, we expect further Comcast
markets to deploy the TiVo service in fiscal year 2010. Cox is currently in trials in New England and we expect to begin initial deployment of their TiVo-
enabled DVR solution during our fiscal year 2010. We also announced an extension of our DIRECTV partnership. Under the terms of this non-exclusive
arrangement, we expect to develop a version of the TiVo service for DIRECTV's broadband-enabled HD DVR for a launch to consumers as soon as possible
in calendar year 2010.
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.
Extend TiVo Product Beyond U.S. Market. We believe there is a large opportunity to leverage the TiVo service and technology outside the United
States. For example, we have a distribution agreement with Cablevision Mexico, which is owned by Televisa, to provide a Spanish-language version of the
TiVo service to digital cable subscribers in Mexico City, and Hybrid Television Services, a 100% subsidiary of Seven Networks in Australia, which is selling
a DVB-T version of TiVo, and LiTV in Taiwan who is selling a broadband bundled cable offering through its TGC Taiwan subsidiary. We currently have
solutions that integrate broadband offerings for cable, satellite, and over-the-air television distributors and we expect to consider additional international
partnerships and distribution agreements over the next year in these markets.
Increase Advertising Capabilities and Revenue. We offer interactive advertising capabilities to advertisers, advertising agencies, and broadcast
networks. Our advertising products include detailed reporting on actual viewing and screen-by-screen interaction by consumers. We offer our advertisers
compelling interactive products such as branded Showcases including long-form video, requests for information, and customizable applications such as car
configurators. We also offer the ability to enhance existing television commercials with interactive tags, enabling consumers to pause television and explore
additional advertising content. 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 advertisers and advertising agencies include Grey SF, Toyota Motors, Warner Brothers,
Universal McCann, OMD, MediaEdge, Mediastorm, IdeaCity, Fox Corp, and the Procter & Gamble Company.
Increase Audience Research Capabilities and Revenue. We offer advertisers, advertising agencies and television networks second-by-second reporting
on television program and commercial viewership in our subscribers' homes. We make this available via two primary products, Stop||Watch ratings service
which is based on an anonymous, aggregate nightly sample of 100,000 TiVo subscribers (which is expected to increase to 300,000 by the fall of 2009), and
Power||Watch which is based on a panel of 20,000 TiVo subscribers who have volunteered to participate in this on-going research project and have opted-in to
allow viewership to be associated with their set-top boxes and, on an anonymous aggregated basis, various characteristics of their household which they have
provided to us. We plan to continue developing and enhancing these offerings by using the viewing data already available to us to present deeper insights into
how DVR households consume television content.
Our Technology
TiVo has developed a technology portfolio that makes the TiVo service available on a standalone retail DVR product line that receives over-the-air
digital signals and is CableCARDTM ready, on the integrated set-top boxes of a major satellite television provider, DIRECTV, through software downloads on
set-top boxes for cable television providers Comcast and in the future Cox, and through over-the-air standard DVB-T in Australia and in the future New
Zealand. We anticipate making the TiVo service available on set-top boxes of additional television service 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.
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