TiVo 2009 Annual Report Download - page 26

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Table of Contents
We rely on our retail customers and service providers to market and distribute our products and services. In addition to our own efforts, our retail
customers distribute DVRs that enable the TiVo service. We rely on their sales forces, marketing budgets and brand images to promote and support DVRs and
the TiVo service. Additionally, we now depend on service providers, such as Comcast to market and promote the TiVo service. We expect to continue to rely
on our relationships with these companies to promote and support DVRs and other devices that enable the TiVo service. The loss of one or more of these
companies could require us to undertake more of these activities on our own. As a result, we would spend significant resources to support the TiVo service
and DVRs and other devices that enable the TiVo service. The failure of one or more of these companies to provide anticipated marketing support will require
us to divert more of our limited resources to marketing the TiVo service. If we are unable to provide adequate marketing support for DVRs and the TiVo
service, our ability to attract subscriptions to the TiVo service will be limited.
Many consumers are not aware of the full range of benefits of our products and services. DVR products and services are a continually evolving
consumer electronic category. Retailers, consumers, and potential partners may perceive little or no benefit from digital video recorder products and services.
Many consumers are not aware of its benefits, such as the ability to seamlessly integrate linear and broadband/VOD-based video, time-shifting of linear
television, transfer of recorded programs to portable devices, access to web based and broadband delivered content not available through traditional cable and
satellite operators, and therefore may not value the benefits of the TiVo service and products. We will need to continue to devote a substantial amount of time
and resources to educate consumers and promote our products in order to increase our subscriptions. We cannot be sure that a broad base of consumers will
ultimately subscribe to the TiVo service or purchase the products that enable the TiVo service.
We face competitive risks in the provision of an entertainment offering involving the distribution of digital content through broadband,
including from broadband devices connected directly to the TV or through a PC connected to the TV.
We have previously launched access to the entertainment offerings of Amazon Video on Demand (formerly "Unbox") service, Netflix, Blockbuster On
Demand, CinemaNow, and Jaman for the distribution of digital content directly to broadband-connected TiVo DVRs. Our offerings with Amazon Video On
Demand, Netflix, Blockbuster On Demand, CinemaNow, and Jaman involve no significant long-term commitments. We face competitive, technological, and
business risks in our on-going provision of an entertainment offering involving the distribution of digital content through broadband to consumer televisions
with Amazon, Netflix, and others, including availability of premium content and speed and quality of the delivery, including the availability of high definition
content in the future, of such content to TiVo DVRs. For instance, we face increased competition from a growing number of broadband-enabled devices from
providers such as Roku and Vudu (which recently announced it was being acquired by Walmart) that provide broadband delivered digital content directly to a
consumer's television connected to such a device. Additionally, we face competition from online content providers and other PC software providers who
deliver digital content directly to a consumer's personal computer, which in some cases may then be viewed on a consumer's television. If we are unable to
provide a competitive entertainment offering with Amazon Video On Demand, Netflix, Blockbuster, and our other partners, on our own, or an equivalent
offering with another third-party, the attractiveness of the TiVo service to new subscribers could be harmed as consumers increasingly look for new ways to
receive and view digital content and our ability to retain and attract subscribers could be harmed.
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