TiVo 2009 Annual Report Download - page 9

Table of Contents
Offer Increasingly Differentiated Features and Service. Our goal is to lead the market with innovations that expand the value and potential of our
subscription service. We plan to continue to invest in innovation to improve consumer choice, convenience, and control over their home entertainment and to
make the TiVo service more compelling for both current and potential customers. For example, we recently launched a new high definition user interface that
seamlessly integrates traditional linear television content with on demand content delivered via broadband in one user interface. Further, TiVo's retail offering
enables consumers to access millions of pieces of content that are not available with the vast majority of cable and satellite subscriptions. TiVo's new
Premiere product is one box that delivers DVR, cable box, movie box, web box, and music box functionality. We expect that a significant portion of our
future product development efforts will be focused on broadband functionality as we believe that this area will bring the most significant enhancements to the
TiVo service in the areas of mobility, entertainment personalization, broadcast/broadband integration, and search. 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 ("VOD") content,
including innovative means of highlighting HD content throughout the user interface.
License Our Technology. 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 both TiVo and third-party designed product boxes in order to promote the mass deployment of devices
utilizing our technology. There are three ways in which we license our TiVo technology; a TiVo box provisioned as a set-top box where we are the hardware
provider; TiVo software we build into third-party hardware; and software that is an upgrade to previously deployed software and hardware. We have
announced partnerships with Comcast, Cox, DIRECTV, RCN, Virgin Media, and others to deploy our products in these manners.
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 Products Beyond U.S. Market. We believe there is a large opportunity to deploy the TiVo service and technology outside the United
States. For example, we recently signed an exclusive distribution agreement in the United Kingdom with Virgin Media, the United Kingdom's largest cable
operator, to provide the TiVo service on next generation set-top boxes, including both DVR and non-DVR platforms. We also have distribution agreements in
Australia, Mexico, New Zealand, and Taiwan. Our solutions have the ability to integrate broadband offerings for cable, satellite, and over-the-air television
distributors and our strategy is to sign additional international partnerships and distribution agreements in the future.
Increase Advertising Capabilities and Revenue. We offer interactive advertising capabilities to advertisers, advertising agencies, and broadcast
networks. Our advertising products include detailed anonymous aggregated 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.
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 several products including: Stop||Watch ratings
service which is based on an anonymous, aggregate nightly sample of 350,000 TiVo subscribers; Stop||Watch local ratings service which provides local
anonymous second-by-second viewing data; Power||Watch which is based on a panel of 35,000 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; True Targets which enables brand clients to overlay their proprietary audience segmenting
tools across the Power||Watch panel to gain insight into how their targeted audience segments consume television content; and Power||Watch for Quantcast,
where TiVo has partnered with Internet measurement firm Quantcast to create a research product that combines anonymous television viewing data from the
Power||Watch panel and combines with anonymous Internet behavior data from Quantcast's direct Internet measurement to offer advertisers a "single-source"
view of television and Internet consumption in the same households. Additionally, we've partnered with companies who can use our anonymous viewing data
to fuel products which are complementary to TiVo's own research offerings, such as TRA. TRA combines anonymous viewing data with purchase data. We
plan to continue developing and enhancing these offerings by using the viewing data already available to us to present deeper insights into how households
consume DVR and non-linear television content.
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