TiVo 2009 Annual Report Download - page 13

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Table of Contents
Other Relationships
Cox. On August 22, 2006, we entered into a non-exclusive licensing and distribution agreement with Cox Communications (otherwise referred to as
Cox). Pursuant to the agreement, we have agreed to develop a TiVo-branded software solution for deployment on Cox's DVR platforms, which would enable
Cox to offer our DVR and advertising software to its customers and advertising clients respectively. In addition, we have agreed to develop an advertising
management system for deployment on Cox platforms to enable the provision of local and national advertising to Cox subscribers. The initial term of our
agreement is for five years from completion of the TiVo service software solution, but no longer than seven years after the effective date of the agreement. As
part of our agreement with Cox, we will have the right to sell advertising in connection with our service offered through Cox as well as on other Cox DVR
set-top boxes enabled with the advertising management system. As part of the agreement, Cox is receiving a non-exclusive, non-transferable license to
specific TiVo intellectual property to deploy the TiVo service software solution and advertising management system, including certain trademark branding
rights.
Seven/Hybrid TV. On March 19, 2007, we entered into an exclusive distribution relationship with Seven Networks and Hybrid Television Services for
Australia and New Zealand. Seven Networks is the one of the largest broadcasters in Australia. Under the agreement Hybrid Television Services (a subsidiary
of Seven Networks, or "Hybrid TV") will be the exclusive licensee and distributor of TiVo digital video recording technology, services, and trademarks in
Australia and New Zealand. In July 2008, Hybrid TV first distributed TiVo in Australia. In 2009, Television New Zealand International Limited ("TVNZ")
became a part owner in Hybrid TV with Seven. In November 2009, Hybrid TV first distributed TiVo in New Zealand.
Virgin Media. On November 23, 2009, we entered into a mutually exclusive distribution relationship with Virgin Media in the United Kingdom. Virgin
Media is the largest cable operator in the U.K. and also the country's second largest pay television provider. Under the agreement TiVo will be the exclusive
middleware and user interface software deployed by Virgin on its next generation platforms including both DVR and non-DVR set-top boxes. TiVo will
receive recurring monthly fees for use of our software by Virgin after deployment and there are minimum commitments with respect to those fees. Virgin is
also the exclusive licensee of certain TiVo technology and trademarks in the U.K.
Sales and Marketing
Consumer Offerings. We sell subscriptions to the TiVo service directly to consumers who have purchased a TiVo-enabled DVR. 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
currently manufacture and sell two high definition models of TiVo-enabled DVRs, the high-definition TiVo Premiere DVR, and the high-definition TiVo
Premiere XL DVR which retail for $299, and $499, respectively.
Services to Television Service Providers. We also sell our technology and services to television service providers, such as Comcast, DIRECTV, RCN,
Virgin Media, and others who then market the TiVo service to their subscribers.
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 TRA, Quantcast, and NBC Universal.
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. In most cases, when our product is sold
through a television service provider (such as Comcast, Cox, Virgin, and RCN) the service provider is primarily responsible for customer support. We provide
training and other assistance to these service providers.
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