TiVo 2009 Annual Report Download - page 52

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Table of Contents
• We expect to continue our efforts to increase our subscription base by adding new subscriptions through our TiVo-Owned direct and retail sales
with the rollout of our new products and through our expanded agreement with Best Buy, as well as, our mass distribution partnerships both in
the U.S. and globally. However, we still expect our overall subscription base to decrease from the prior year due to continued competition with
our TiVo-Owned subscriptions and due to the continued losses in our installed base of MSOs/Broadcasters subscriptions as DIRECTV will not
deploy new TiVo boxes prior to the launch of the new HD DIRECTV DVRs with TiVo service in the future and our distribution deals such as
Comcast, Virgin, and Cox are still in development and/or the early phases of deployment.
Key Business Metrics
Management periodically reviews certain key business metrics in order to evaluate our operations, allocate resources, and drive financial performance
in our business. Management monitors these metrics together and not individually as it does not make business decisions based upon any single metric.
Subscriptions. Management reviews this metric, and believes it may be useful to investors, in order to evaluate our relative position in the marketplace
and to forecast future potential service revenues. Below is a table that details the change in our subscription base during the last three fiscal years. The TiVo-
Owned lines refer to subscriptions sold directly or indirectly by TiVo to consumers who have TiVo-enabled DVRs and for which TiVo incurs acquisition
costs. The MSOs/Broadcasters lines refer to subscriptions sold to consumers by MSOs/Broadcasters such as DIRECTV, Cablevision Mexico, Seven/Hybrid
TV (Australia), Television New Zealand (TVNZ) (New Zealand), and Comcast and for which TiVo expects to incur little or no acquisition costs.
Additionally, we provide a breakdown of the percent of TiVo-Owned subscriptions for which consumers pay recurring fees, including on a monthly and a
prepaid one, two, or three year basis, as opposed to a one-time prepaid product lifetime fee.
Fiscal Year Ended January 31,
(Subscriptions in thousands) 2010 2009 2008
TiVo-Owned Subscription Gross Additions: 148 187 276
Subscription Net Additions/(Losses):
TiVo-Owned (189) (91) 19
MSOs/Broadcasters (541) (520) (518)
Total Subscription Net Additions/(Losses) (730) (611) (499)
Cumulative Subscriptions:
TiVo-Owned 1,465 1,654 1,745
MSOs/Broadcasters 1,140 1,681 2,201
Total Cumulative Subscriptions 2,605 3,335 3,946
Fully Amortized Active Lifetime Subscriptions 279 225 175
% of TiVo-Owned Cumulative 58% 59% 61%
Subscriptions paying recurring fees
48