TiVo backed out of deal with Comcast

Ok, now we understand why TiVo CEO Michael Ramsay was "promoted" out of his job last week. You know how people have been telling TiVo how the only way they're going to survive would be to convince some a cable company to license their digital video recorder software for use on set-top boxes? Yeah, well according to the New York Times last summer they were about to score a big deal with Comcast to do precisely this, that is until Ramsay pulled the plug at the last moment because he was convinced TiVo wasn't getting paid enough money or given enough control over the service.
We won't second guess his decision, since we don't know the exact terms of the deal (though apparently they were pretty bad), but you know what, TiVo is sort of in a life-or-death situation right now and might have to take what it can get if it wants to stick around. The company is still not turning a profit, they're facing increased competition from all sides (from cable companies with their generic DVR-capable set top boxes, Digeo's Moxi, and Microsoft's Media Center OS, not to mention stuff like MythTV and Beyond TV), and having deal like this in place would have been especially valuable in the wake of their recent break up with DirecTV.  Now it's Microsoft and Digeo who are testing their software with Comcast and TiVo that's being left out in the cold. Ramsay says his strategy was to make an end-run around the cable companies and focus on turning the TiVo into a digital entertainment hub (i.e. "convergence", i.e. the same thing everyone else claims to be working on), but now he's out (at least as CEO, he's staying on as chairman) and it's unlikely that whoever succeeds him will have the luxury of grand visions: right now they're going to have to focus on ensuring that TiVo is still in business a year from now.

[Philip @ Dec 19th 2005 12:09AM]

I think sales of the MacMini (and almost certain new peripherals for it) will also take bite out of TIVO.

Even though Tivo is easy to use - someone like Apple could come in and "easy interface it" and put them under quickly.

This said, I wish someone like Apple would just buy them out.

[akatsuki @ Dec 19th 2005 12:09AM]

I just want to know whether my Tivo will become junk if the company goes bankrupt...

[raulr @ Dec 19th 2005 12:09AM]

Let's just say it's not the best time to get their life time subscriptions.

[Jim @ Dec 19th 2005 12:09AM]

I've been a L-O-N-G time ReplayTV user (TiVo competitor) and after using a Moxi box for a couple months, I have to say, TiVo (and ReplayTV as well) has got a huge hurdle to overcome. Moxi's Cable box integration is really tight, and its dual tuners eliminates virtually all scheduling conflicts that plagued single-tuner standalone DVR models. The interface is slick, and it is very feature-rich. And at under $10.00 per month, zero up-front equipment costs, and no contracts, you really save a bundle.

Moxi is certainly not without its shortcomings, but it is evolving very quickly, and they seem to have learned from many of the mistakes made my other DVR manufacturers.

I'm still keeping my ReplayTV boxes, but I'll not be giving up Moxi any time soon.

[me @ Dec 19th 2005 12:09AM]

It would be cool if Steve Jobs was the new Chariman look what he dis fo Gap Apple and Pixar.

[Paul Mace @ Dec 19th 2005 12:09AM]

Ramsay is nothing if not consistent. Before TiVo was a time-shifting TV box it was Bongo/TeleWorld and was envisioned as a home entertainment service. The problem has always been that the boxes are not profitable, the 'service fee' is for delivering program guide data that others provide free, and the profit is in delivering content and advertizing, of which TiVo has none to speak of--Ramsay axed that division a year after launch. Post-IPO TiVo's executive team has not signed a single significant television industry partnership. They have been going it alone for years, and will rightfully point with pride to making TiVo a household word long after stockholder value has been wiped out.

[MS Mobiles @ Dec 19th 2005 12:09AM]

TiVo is overrated. My 100-euro cheap satellite receiver with hard disk is better... and I don't need to pay any monthly fees...

[Jason @ Dec 19th 2005 12:09AM]

Tivio Crap, Apple ha crap also. Look at Windwos Media Center 2005 that is the furture.

[Drew Grgich @ Dec 19th 2005 12:09AM]

What consistently cracks my goat about folks who post about Tivo is that the naysayers -"My $40 Linux box running MythTV or DVR Version XYZ can do everything a Tivo can do!" - never understand what it is the crown jewels that Tivo has, their marvelous database technology and their very simple interface. I go home, tell my Tivo to get everything with 'Clint Eastwood' in it or 'poker' or 'animal husbandry' or whatever and it gets it. Automatically. Nothing else to do. Sure, your cable box will give you the ability to do rudimentary time-shifting but until there is an omni-present database system available that matches Tivo's, I'm going to stick with Tivo! As far as the interface, if my mother-in-law can operate it, anyone can. She has the computer skills of a goldfish and she can work her Tivo without calling me.

[Fezmid @ Dec 19th 2005 12:09AM]

To #4: The DirecTV/TiVo combo box is tightly integrated as well, and only costs $5/month for unlimited receivers in the house. Dual tuners rock!

It'll be interesting to see how this whole thing plays out. I know DirecTV is making their own recorder as well now... And with TiVo on the ropes, it's not looking good :(

[Jojometal @ Dec 19th 2005 12:09AM]

I own a ReplayTV... an older model that allows automatic commercial skipping. I love it, and it has changed the way I watch TV. I watch shows on my schedule, and I don't waste time with commercials anymore. I can't really speak on Tivo's individually since I've never owned one, but I can speak about DVR/PVR's as a whole.

Their makers have made a technology that relies on users having access to other people's content. So, they're basically at the mercy of the companies who own that content. If cable and satellite companies are able to secure deals with competitors (Microsoft, ReplayTV) for the rights to their hardware, the company without a major deal will be screwed no matter how good the software/interface is.

The best thing that Tivo could do (in theory only, of course) would be to acquire a delivery system to get content to the home quickly. Streaming movies, or some other method. This way, they could change their business model and take customers away from the cable and satellite companies. Maybe a joint effort with Tivo and MovieLink or CinemaNow...?

If they had this delivery mechanism in place, they could broker a deal with content providers to license their IP (i.e. programming) for a fee. Ideally, users would be able to stream their favorite programs and pay on a per show basis. This could possibly eliminate the need for a subscription, and would allow people like me to finally dump cable companies where I pay $30+ a month for a bunch of channels I will never watch. Of course, cable companies have an interest in self preservation which may keep them from allowing other people access to their programming, but the almighty dollar speaks loudly.

The worst case would be a content provider like Comcast, etc. acquiring Tivo. Then we'd be bent over, taking the cable bills all over again with no interest in consumer rights... just IP protection.

[Stephen Sullivan @ Dec 19th 2005 12:09AM]

how the hell did Steve Jobs save Gap?

[dan @ Dec 19th 2005 12:09AM]

I think yer nuts to think Appl'e MiniMac is gonna take a bite out of TiVo's market share. I mean that's what the shuttle and various apps were to do right? And that hasn't happened yet. TiVo still rules when it comes to easy setup, UI and overall customer integration.

Odds and ends and cool capture boards and parts and pieces are just that, pieces of an offer with no one stable "hi i work" solution. TiVo has that.

I don't know why TiVo didn't go for the Comcast deal. But he had a reason i'm sure. I think its funny how folks can take something as good as TiVo and tear it apart like its an old pinto ready to explode. Its a proven market force, even then it must be bad, has holes, evil product, must be, folks like it.

I hope the SDK kit and TiVoToGo helps them. I'd personally love to see some flickr api integration and more.

Microsoft has jack on TiVo, they have concepts and ideas and are attempting like everyone else to take the crown. - they ain't gonna get it.

[JoeM @ Dec 19th 2005 12:09AM]

I go my Windows Media Center 2005, so I can get rid of my tivo. Best thing i ever did.