TiVo In 2002
By Group 3 , Section A , 2019-21
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GROUP MEMBERS
ANAND KANT JHA (19P007)
AYUSHI GARG (19P013)
DHIREN GURUNANI (19P019)
ISHITA JAIN (19P021)
SHREYANSH AGRAWAL (19P052)
AYUSH GARG (19P077)
CASE FACTS
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Brief History
( Picking Up from where we left)
Launched in 1999 as a bundle of revolutionary features, TiVo (creator of the personal video recorder or PVR)
Initial Hurdle
Lack of awareness was first accused for the lacklustre sales
Problem of defining and communicating a clear unifying and relevant meaning for TiVo.
Positioning : To define the product in the mind of consumers if it was positioned as a smart and friendly service that could
improve their lifestyle.
Competitors in Space
Industry leader Microsoft announced the launch of competing product UltimateTV.
The UltimateTV unit of Microsoft was later on disbanded.
Replay TV, an early competitor, had withdrawn in 2001 before re-entering the market a few months later with redesigned
high-end PVRs
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Initial Introduction & Journey Forward
TiVo, introduced initially in standalone black boxes branded Philips and Sony.
Current Set Up
Bundled with satellite television receiver DirecTV (sharing the same platform) and with a special model of AT&T cable receiver.
New Features Introduction
Two tuner system (allowing users to record a program while watching a different channel)
TiVo “Series 2” (supported by DirecTV) which allowed consumers to control and organize not only television content, but also
digital materials downloaded from the internet, their video cameras, and other audio equipment.
Partnerships
DirecTV’s commitment to TiVo now included financial responsibility for customer acquisition costs.
Best Buy was now the exclusive retailer of TiVo. The monthly subscription for owners of standalone TiVo units was increased to
$12.95 per month (vs. $9.99 for DirecTV customers)
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Issues
Precarious financial position
Current number of subscribers to TiVo is
substantially lower than previously forecasted
Subscriber profiles are narrow, indicating a small
target market
Promotion of the TiVo category, including PVR
and DVR, relatively low
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Breaking Through the Inertia
The marketing team, was under considerable pressure to
I. To further understand the nature of TiVo’s appeal for potential and existing customers
II. To encourage all the other actors involved (advertisers, television networks, content owners,
and service operators) to account for TiVo’s relevance in the life of television consumers
Gap analysis
III. There is a gap between what consumers understand and what they act upon.
IV. Awareness, product understanding, and intention to buy are all moving up. How to close the
gap to action?
V. There is a contrast between the inertia of prospects and the evangelical zeal of TiVo users
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SUBSCRIBER SATISFACTION SURVEY (Mar 2001)
Key Results
Survey focused on –
90.1% people rated 7.5 on 70.1% people knew 87% of the subscribers were
1) Buying Experience average (highly satisfied) someone who had before between 25-54 by age
2) Installation Process their purchase
3) Usability 96.4% people would Most of the subscribers
4) Day-to-Day recommend TiVo to others [Link] and TV ads were married couples
Experience became an important source
More than 80% people of influence
65% customers of TiVo had
enjoy TV more with TiVo Recording and Trick Play an annual income > $50k
were the most used features
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TiVo vs. Technological Gadgets
Viewing Habits and Fun Facts
70% of content watched was
69% of subscribers watched
TiVo
recorded, as against 30%
more with TiVo
Live TV
Channel surfing was reduced
>55% claimed to be more Cell Phone, Microwave,
satisfied with premium PDA device, DVD
by as much as 89.6%
channels in TiVo player, Digital Camera
96% subscribers felt their 46% said they perform
lives without TiVo will be impulse TiVo functions on
difficult other devices Video Camrecorder, Video Game Console,
Portable MP3 Player, VCR
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Getting
Getting more
more out
out of
of my
my basic
basic TV
TV doesn't affect
doesn't affect
cable
cable or
or satellite
satellite service;
service; Thanks
Thanks my social
my social
to
to TiVo!
TiVo! plans anymore
plans anymore
Able
Able toto watch
watch TV
TV with
with spouse
spouse
even
even if schedules don't match or
if schedules don't match or
if interruptions occur
if interruptions occur
Less
Less interruptions
interruptions while
while No more missing my fav
No more missing my fav
watching
watching TV;
TV; Just
Just pause
pause it!
it! orite TV
orite TV shows
shows
More
More time
time for
for II enjoy
enjoy
friends
friends &
& TV more
TV more
family
family with TiVo
with TiVo
Better
Better relationship
relationship with
with kids;
kids; Able
Able to
to manage
manage amount
amount &&
less arguments about completing
less arguments about completing quality
quality of shows watched by
of shows watched by
their
their homework;
homework; pause
pause TV
TV and
and children;
children; find
find quality
quality shows
shows
take
take care
care of
of their
their needs
needs which
which the
the children
children wouldn't
wouldn't
immediately
immediately have
have watched
watched otherwise
otherwise
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The “Logs”
TiVo units were capable of collecting and transmitting both diagnostic data and a “personal
viewing information log.”
In effect, TiVo kept track of every click of the remote control, and correlated each click with a
time index
Logs were anonymized before being sent to TiVo headquarters
Establishment of group to deal with viewer (2001)-The goal of the group was to come up with
some actionable insights from the data that TiVo was collecting.
Key Insights
• 90% of TiVo subscribers reported that they fast-forwarded through the advertisements, it
appeared that rather certain types of commercials were watched (e.g., the first one in the pod).
• As long as there was something interesting or entertaining there, like a movie trailer ad or a
funky Gap commercial, these ads didn’t get axed by the viewer.
• TiVo was aware that this kind of data-gathering process. Even linking behavioural data with
zip codes was viewed as an invasion of privacy that should be avoided
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The Superbowl Experiment
Company analysed : Superbowl by compiling aggregate anonymous data from a sample
of 10,000 subscribers.
Purpose :
How the TiVo technology could be used, both to serve our consumers, and to provide networks and
advertisers with a tangible result, to show how our users are consuming television differently than the
average user
Insights
Broadcast was paused and/or replayed an average of 44 times per TiVo household
Subscribers used TiVo’s Trick play features predominately to replay commercials
About 39% of TiVo subscribers watched the game.
New England’s game winning field goal was the most replayed action during the game.
Only about 3% of TiVo users switched to other programming during the broadcast, including during the
halftime show.
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ANALYSIS
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PRODUCT LIFE CYCLE
Launched in 1999 as a bundle of revolutionary features
Faced competition from other players initially from other players
Introduced two-tuner system (record and watch other program)
TiVo Series 2 was launched, allowing digital content management
Subscribers had grown to 380,000
Recent quarterly growth rates of 36% (latest), 22%, and 21%
Collaboration with Direct TV to support customer acquisition
Collaboration with BestBuy for retailing TiVo
With the increasing sales and competition the company is moving from
introductory to growth phase
Decline
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ROGER’S INNOVATION CURVE
TiVo
Early Late Majority
Majority
Innovators
Early
Adopters Laggards
TIME
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CONSUMER BEHAVIOUR
Positioning based on consumer behavior within a certain segment only, so marketing efforts end up being
focused on an already existing and well-penetrated segment
Consumers are more inclined to buy the product during the Festive times as the 2 of periods of the
highest growth in new subscribers are the holidays season period (933% in Dec-99 and 220% in
Dec-00)
Big influence of friends & family in purchase decision
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Qualities are not “tasted” until it is personally experienced
Good post purchase Behavior – survey suggests that existing customer will most likely recommend
it to others
Fascinated by TiVo , trying to apply same functions in non-TiVo situations
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HIGH RESOURCES
INNOVATORS HIGH INNOVATION
IDEALS ACHIEVEMENT SELF-EXPRESSION
THINKERS ACHIEVERS EXPERIENCERS
BELIEVERS STRIVERS MAKERS
LOW RESOURCES
SURVIVORS 19
LOW INNOVATION
CUSTOMER LOYALTY MODEL
Increasing
royalty
Mercenary Loyalist
Majority of the customers
of TiVo are Loyalist.
This means they are high
on both loyalty and
Increasing Satisfaction
satisfaction (Exhibit 7 &
Satisfaction
8)
This increases the
Defector Hostage
customer stickiness and
reduces the customer
retention costs
Loyalty
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RECOMMEDATIONS
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AIDA MODEL
Customer
Referrals
Awareness,
product understanding,
and intention to buy Community
were all moving up, but Storytelling
sales were slow.
Closing the gap between
what consumers
understood and what they
were acting upon? Free first
month trials
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Offering free first month
trial
TiVo was an experience product which became an indispensable part
of daily life as the customer used it
TiVo had sunk in with consumers, 89% of TiVo subscribers found it
frustrating to watch TV without TiVo and 96% felt that it would be
difficult for them to give up TiVo and adjust to life without it
People who had used the product, were highly satisfied, perceived
it easy to use, and felt that it had improved their day-to-day
personal life and interactions with others
Allowing people to experience the product through free trials
would help in reducing the gap between intention to buy and action to
buy- Moving people down the funnel
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Referrals
Referrals from friends & family were most influential factor
for consumers (57.5%)
90.1% of customers were satisfied with their TiVo & 96.4%
would recommend TiVo
Thereby asking people to refer the service to their friends and
families in return for some rewards like upgradation to higher
capacity models
Community Storytelling
Using real customer stories to show how their own
lifestyle has improved after using TiVo (Exhibit 7)
Stories about how people are able to have better
relationships with their friends, spouses and kids
Stories about how TiVo has made their life independent
from rigid TV schedules and unintended interruptions
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Upselling to existing Customers – Upgradation
Offering upgradation to existing DirecTv loyal customers, to buy TiVo service
free
`
Leveraging personal viewing information
The data collected on type of ads seen, ads skipped and type of shows most popular can be
monetized by partnering with advertisement agency and with Tv Channels
Seasonal Discounts
Discounted Gift packs (subscription pre-paid) for Christmas/New years etc. as the major
uptake in new subscribers is during the festive seasons
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THANK YOU
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