TiVo's new pricing includes box, drops lifetime plan
By Marc Perton 
posted Mar 8th 2006 4:46PM
posted Mar 8th 2006 4:46PM
As expected, TiVo has revised its
pricing plans to include the purchase of the TiVo box as part of the monthly fee. New pricing schemes include a
one-year plan at $19.95 per month, a two-year $18.95-per-month plan and a three-year $16.95 plan. All plans include an
80GB Series 2 TiVo box, and discounts are available for customers who pre-pay (i.e., a prepaid three-year plan is $469,
vs. $610.20 on the monthly plan). TiVo had earlier experimented with a similar
all-in-one plan at a somewhat lower price: the one-year plan was $16.95 per month, including a 40-hour TiVo box. TiVo
has also quietly dropped its $299 lifetime service plan, though current users who signed up for that plan won't be
affected. [Via PVRWire]
Tivo, thank you for showing me the light. I'm very happy now with my Mythtv setup. Promptly eat loose stool and die, we'll miss your payment plan about as much as I'd miss my cell phone bill.
Geez, $20 a month just to watch my own cable? I'll take the Moto DVR from my provider. I do wish it came with the TiVo software, tho...
Who's gonna pay that. I think I will stay with my DVD-Ram recorder. Best way to record tv. $149 for the recorder and free to record! Take a hike TiVo. People pay enough for cable already. Who wants to add your fee to their list of monthly bills. Hopefully you will go out of business.
The one thing that really bugs me these days is that every company is trying to get some kinda continuous revenue stream, instead of trying to improve product after product. Back in the day a company would come out with a product, then once it hit end of life, they'd come up with something new, and sell it outright again. It seems to me that so many companies are trying to hemmorage money out of consumers via monthly payments. It used to be that the only consumer products really that required such a commitment were cell phones. To me, the TIVO lifetime subscription was the last of it's breed. It's getting to the point where i have so many different monthly reoccuring costs, that it's getting quite ridiculous. I know this is the way businesses these day just run, because it of course makes them more money. But honestly, im going to hate the day that software becomes entirely subscription based, and to use Windows you'll have to pay a $10 per month fee.
Matt M, you're dead on. I wish companies (cell phones, cable/sat., etc.) would work harder to EARN my patronage, instead of contractually binding me to their service and products.
I'm glad I made the choice to buy my ReplayTV back about a year ago. I really did my homework and it was a close call, but if I were to do the same research today, there would be no question. I hope ReplayTV (with their quiet presence) doesn't change anything, unless it's for the better.
I have two TiVo's and love them. And I love the lifetime subscription now more than ever. Doubtful that I'd get another with this structure.
I love my ReplayTV's. I paid for two life time subcriptions. Too bad ReplayTV as a company is almost dead. Now I can't even repay the lifetimes and convert to TIVO. urrrgh
I am not sure I understand why its so costly to provide updated programming information - isn't there some sort of centralized system that all people can tap into. My guess is yes given that there are some free downloads for PVR capable videocards / computers...
I think it's so costly because they want to suck every last dime out of you. If it were possible for companies to charge for water they would.... wait a second......
But seriously, a company has to cover overhead sure, but i think sometimes there's a limit, it makes companies lazy, R & D has really slowed down in the last few years for these sorts of technological marvals. It's like a cell phone, instead of making a kickass network, the company slaps a crappy camera on a phone and charges you another couple hundred dollars for it. I'd much rather pay the $300-400 for a phone every few years if that meant we had amazingly fast networks (like certain other countries). But we dont, and corportations are STILL charging us an arm and leg for it.
Homer J, I dont think it has anything to do with providing the data. They just amortize the costs of the units over the long run is the deal. For example, when you were able to go into the store and buy an 80 hour Tivo for $50, they were losing a lot of money. They were counting on you to pay them, either with a monthly fee or $300 for the lifetime subscription.
I dont know what the deal is. I pay $15/month to my cable company for an HD tuner/recorder. A regular tuner would cost $5/month, so I guess I pay $10/month for the record function. Cheaper than Tivo, and integrated into my cable box.
If Tivo wanted to stay relevent, they needed to be able to patent something useful. For example, they cou;d have partnered with the television channels to monitor tivo subscribers viewing habits and provide more relevent (and therefore more valuable to advertisers, and therefore higher revenue) commericals. Tivo could have taken a percentage of the increase in ad revenue that networks would reap, and that would probably be a junkload of money.
Their new prices are a big f'ing Rip off.
Sad. "TiVo has also quietly dropped its $299 lifetime service plan." If the Series3 involves buying expensive hardware *PLUS* a monthly rental fee without a lifetime option, so have thousands quietly lost interest in the Series3...including me.
whats this going to mean for the possibly vapor-ware series 3? If this structure means im not going to have to pony up $500-$700 for my hdtivo thats fine with me but it just means standard tivo service is going to be just that much more expensive then im pissed. i didnt go lifetime services because i wasn't sure if i would stay with tivo and now im wishing i had. It will still take me over a year to break even and i figured the series 3 would be out by now.
#6, I'm with you. I have 1 Tivo with a lifetime sub. I don't think I could handle paying monthly, or even monthly upfront. I bought mine on May 26, 2000. I can't imagine paying $15 bucks a month since then! That would be $1224! If it had been making my breakfast every morning since then, sure, I'd pay it.
Tivo stays in business or Tivo doesn't. Deal with it.
James - math refresher - $1080 for six solid years. No way to get a number ending in "4" when you're multiplying integers by "5".
Meanwhile, if you want a lifetime Tivo, buy it on eBay - there are plenty sold out there. It's how I got mine, and since the subscription transfers with the unit, Tivo can't stop it from being sold.
Finally, to all the nitwits that want a one-time cost Tivo - not possible. Why would you buy a new Tivo routinely, when we've seen a very robust upgrade market? If you're not, they have no way of paying for their constant ongoing costs of bandwidth, servers, programming, support, etc.
The only way long-term for Tivo and its users to win is for it to contract software development to the various cable and satelite companies. No one cares if their box is Tivo branded, or if they have Tivo support - they want the Tivo software. THAT is what is important.
Tis a shame that the lifetime plans are gone. However, after having my Series 2 for less than a year I'm sure I'll be buying the Series 3 within another year.
I don't like monthly bills as much as any of you. But unlike every other company providing software updates for my hardware(Apple, Microsoft, HP, creative, etc.) Tivo puts far more into improving their product AND constantly adding new functionality. Just an electronic programming guide? That's so 2002 Tivo. A lot has changed. This box gets better everyday!
I dropped TiVo service in favor of Netflix, now I can get TV shows and movies without having to pay $100 to comcast + $15 to TiVo per month.
However, if the TiVo/Netflix alliance hadn't died the horrible vapor-ware death it did because of the greedy movie companies and their licensing then I would be using a TiVo right now. And I'd even pay $50 for it if it had the Netflix arsenal of content on demand. Too bad it'll never happen.
CRAP CRAP CRAP we've been thinking of buying another TiVo, looks like now's the time. We paid for the lifetime subscription for our original TiVo and that paid for itself about 9 months ago (over the monthly subscription)
Now since we already have a TiVo we could get the discounted $6.95/mo subscription cost for our second unit but that would still pay for itself in less than 4 years, so we would still likely go with the lifetime.
Perhaps now is the time to get the second TiVo, I predict a run on TiVos in the coming days.
Wow!
Thanks Tivo for screwing your last set of loyal customers. Having a series one tivo with a lifetime plan has been just great, but you can forget about me being a repeat customer when the series 3 comes out.
Again, congratulations on the massive misjudgement.
Mike, I know how you feel, I just found out yesterday when trying to replace a unit under the lifetime option that they are not allowing this anymore. I will not go back with TIVO
I was awaiting the cable card behemoth HDTV 500 GB whatver they had planned for the series 3. Assume that is 600 bucks plus lifetime fee - I'm ok with that. I dont have to buy a HTPC then. I have the tivo series 2 for over 2 yrs. I was really happy when they gave everyone mone media option. I use that a lot. I stream my music down to the home theater...There is no way in HELL I will pay monthly when I can build an HTPC with double/triple/ the capacity, it would play dvd's, presumably be upgraded to blue ray or HDDVD, and use myth/sage/or beyond...They just put the nail in their own coffin...or are people stupid enough to pay these exhorbitant fees when you can get your local cable company to get you a series 3-esque (dual tuner HDTV recording machine sans the cool UI) at half that price a month?
Just so people understand, TiVO actually pays for the program guide information from various sources as well as the cable channel information (that's where all those "line-up change" messages come from, and it isn't a one-time fee -- it has to pay every month for it. Yes, there are now sort-of free sources for the program guides (usually supported by advertising), so it is possible it might think about switching over. But the monthly charge actually does have a basis in TiVOs costs.
Just trying to insert some business facts in the conversation. Of course, I bought the lifetime service knowing these facts.
Well I was already having a bad day, this makes me angry. No new Tivo for me (ever).
If the Lifetime plan is indeed history..
And we can't transfer our older Series2 lifetime plans to the "as yet unannounced" Series 3, then the outlook is pretty clear.
Nail.. meet coffin
So glad I got my elgato eyeTV. $200 flat for the unit, and no monthly fees. Also, the software was free and I can export to my iPod (like Tivo) and I can burn to DVD (idk if Tivo can or cannot do that). And I've got an external harddrive that allows me to have as much space as I need for my recorded programs. Thanks eyeTV!
I'm a 5-year TiVo user, longtime advocate of TiVo, excited about the Series 3. After this announcment, I would not recommend that anyone buy a TiVo, after years of recommending it to everyone I knew. Dropping the lifetime subscription option is a bad deal for consumers, and it indicates that they've either given up trying to expand their customer base or they have no idea how negatively their community would react. I'm just about ready to jump on that TiVo death watch. Damn shame.
Damn. I have 2 Tivo's with lifetime subs.
I have to agree with #6 and #11.
I was all psyched for a series 3, but now.... Oh well. No new Tivo's at my house.
Wasn't the braindead problem with TiVo's lifetime service that it was locked to a box ... meaning if you went "lifetime" with a Series 1, you had to buy a new service if you bought/upgraded to a Series 2? Made no sense.
They seriously need to work on their marketing research.
Isn't bundling the units with service exactly what replaytv did for a while and how many times did that company go bankrupt?!
The Lifetime Serivce pays for itself in under 2 years (with the current plan) compared to monthly. Most units last well beyond that (our Series2 is at 3 years and counting) and there are people out there with TiVos pushing 10 years old (obviously not with the original Hard Drive).
Obviously this means more moey for TiVo, though I think the timing (very short notice) and methodology (buried in a press release) of the change will put a bad taste in a lot of peoples mouths.
Well... to bad Tivo
I like nearly everyone else here think Tivo's new price structure SUCKS. I understand that they have to pay for their programing info, but so does DirectTV and they can charge $45/month for their programming... I don't think the programming guide is 30% of their cost, I think content costs a lot more than that... plus tivo can sell back usage ratings (so long as they don't include my identification).
Its total B.S.
I'd pay
If you can live without all the Home Media options, you pay $6/month for all the DirecTV/TiVos (or DirecTV DVRs) in your home. The first DVR is free after $100 rebate, and the rest are $100 each. And you can even record two channels at once.
HEY REPLAYTV, ITS YOUR TIME!!!!!!! KEEP THE LIFETIME PLANS AND THEY WILL COME!!!!!!!!!
SCREW TIVO!!!!!!!!!!!!!!!!!!!
I Use GBPVR, Best thing out there as far as im concerned. Got a 150 dollar brand new emachine on thanksgiving and put a card in it and bam instant media center. Everyone check them out www.gbpvr.com
Hmm, I can still select the lifetime sub on my existing box ($299). Should I do it?
My tivo box smells like old meat. Does anyone have one that we would be willing to swap for mine? It's really stinking out the house.
Where does TiVo state that the lifetime plan is gone? Their website does show the new payment plans, but also shows the older price model. I am guessing here, but would believe that if you purchase via TiVo you get the box free and pay a higher fee, buy the box via a retail channel and get lower monthly fees or lifetime purchase. Any thoughts?
Anyone have a shovel to spare so we can start digging the grave for Tivo.....
Better get a preist, last rites need to be given....
Hi fellas,
According to the March 8, 2006 press release, "The changes to the pricing structure and service-only options will launch next week. The changes will not affect TiVo's current base of subscriptions."
FYI, Tivo's web site still allows boxes to be activated with lifetime subscriptions.
Died March 8, 2006
R.I.P. TiVo
I will think fond thoughts of you as watch my MythTV box from now on.
I love Tivo, but this is bad news. I'll be setting up my own pvr real soon. I'm kinda kicking myself for not getting the lifetime before, but the box was pretty expensive at the time. Just not worth the money.
Joshua Ochs, aka #15 re: "math refresher"
Ok, My math was $16.95 to rounded up to $17 for 6 years and does end in a "4". $17 is monthly for 6 years, I should have changed 15 to 17. But none the less, what the hell dude?
CRAP! I, too, was a very early Tivo adopter who's lifetime subscription paid for itself a long time ago.
We recently started using the cable company DVR for the HD. The UI and features are crap compared to Tivo, but it's HD.
I was ready to pay a lot to get in early on the Series 3, too. But not another monthly fee.
I know they need the money, but they just alienated a lot of potential customers. That's just too much.
Not that TiVo is listening, but I *was* willing to spend up to $1000 on a series 3, assuming that I would be able to buy a lifetime subscription for the hardware. No lifetime subscription, no sale; It's that simple. I just won't accept paying a monthly fee for DVR service (even Tivo, which I enjoy today).
So I'll be spending $1300 (or more if necessary) for a new Vista Media Center with HDTV capture as soon as they are released. Tivo has lost (another) customer.
I got a Series 1 Tivo in the late '90s with the lifetime subscription ($249 at the time, I think). It's now the #2 PVR in our house and still works quite well.
I got a heavily discounted DirecTV Tivo PRV a little over a year ago and pay $5 per month, which I feel is a decent deal.
Tivo is now saying that they want the price of a box and at least $16.95 per month? That's where my customer loyalty ends and I look for something else to buy when I upgrade to a HD PVR.
I'd like to know if this pricing structure will carry over to the Series 3 unit when it arrives, or will we get the worst of both worlds: pay $500-$700 for the unit AND pay these higher rates with no lifetime option? I like my tivo and all, but held off of the lifetime b/c I knew I'd be getting the HD version as soon as it came out. Also, I thought that the lifetime subscription only applied to the particular box AND the original owner that registered it. Maybe not if they're selling on ebay. I don't know why anyone would get a lifetime sub at this point unless you simply refuse to adopt high definition, since it looks like they might actually stick to the new conversion dealine.
Tivo announced today the end of any concept of customer loyalty. In a marketing coup, the likes of which have not been seen before, Tivo managed to alienate their entire customer base with one press release.
Tivo users will now flock to the "alternative" sources for their EPG's in droves and thus deprive Tivo of even more money. The notion of Tivo software being made available for Windows HME was rejected. "How could a hardware company ever become a software company?" said a Tivo representative, while having his head banged against the wall by an employee from Sega.
R.I.P. Tivo. Who would have thought you would have dug your own grave so quickly?
Series 3 Box + lifetime = $ALE
Series 3 Box + monthly = NOSALE
I expect any new dvr to last at least 5 years. The initial cost of an HTPC + MythTV is now lower, over those 5 years, than the cost of TiVo. That makes the choice pretty simple.
I used tivo for Direct TV in my fraternity for about a year... its ok. Hell, it was WAY better than ok. Anyone can pick up the remote and use it. But in my apartment, for even a cheaper monthly rate, I now use Adelphia's MOXI box. Holy crap MOXI is WAY better than Tivo. Not only is the interface more attractive, it records two shows at once with only one cable line. Plus the box makes it even easier to access the free ON-DEMAND content offered by Adelphia. Also, there are two USB ports on the front of the box, which they'll use in the future for downloading/uploading media content. But the bottom line is, no matter which brand you use, DVRs seriously kick ass. But if there's anyway you can get MOXI in your area, for the love of God, give it a try.
Re: No More Lifetime Subscription .. BAD MOVE TiVo! We've been waiting for Series 3 .. No Way now pal! .. I think I have been personally responsible for 10 to 15 new TiVo households .. now I'll be responsible for 10-15 folks not buying TiVo Series 3 ..
Geez, what a bunch of whiners here. I'll bet most of you guys are single, living-at-home types, because you couldn't cost-justify a date with a woman. Besides, the blow-up dolls are a much better value.
Tivo doesn't owe you anything, especially since most of you aren't even close to profitable customers. You all probably scour every discount and rebate program that's going, and then get upset because companies find you to be unprofitable customers. Y'know, just because you ARE.
Let me let you in on a little secret: Tivo is in business to make a profit. You weren't interested in helping them in that regard. Sorry, but you don't matter to their future, because the truth is, you never did.
#49: Huh? We (TiVo subscribers) weren't interested in helping TiVo make a profit? Well.. no, that's true, I think we were interested in time-shifting television programs.
Who do you think puts rebate programs together? And why?
I'd love to hear how you figure that long-term, loyal, evangelising subscribers aren't valuable to a company. If not them (us) then who?
#50: "If not them (us) then who?"
The people who will pay bigger margins, that's who. Tivo is a BUSINESS, and businesses need MONEY and PROFITS to survive. Early adopters like many on this board got good deals on S1 Tivos, and they STILL haven't upgraded. Are these people RELEVANT to Tivo's future? No, because they're not profitable.
Look at Tivo's income statements. They haven't been profitable because they weren't charging enough. So, they go out and do market research, and now they're going to raise prices in accordance with that. What good does it do anyone if they go out of business because they can't turn a profit? It's better for them to be a profitable niche company than a bankrupt one.
Anyone who complains about a company making a profit is not a good customer, by definition. It's fine if you want to be indignant about Tivo turning off the gravy train, but that doesn't mean Tivo isn't right for doing so.
*yawn* What a surprise, engadget commentors having a hissy fit over TiVo.
Fact: The large majority of TiVo subscribers select monthly. On a con-call last year it was mentioned that over 80% were monthly, and from a 10-Q filing last year the figure was 74% monthly. Either way, significant majority.
Fact: Monthly has been preferred for some time. From the 10-Q monthly subscribers were 40% of the base in January 2004, and are now 51%. It has been on an upward trend, showing that while early on lifetime was preferred, monthly has been preferred for some time and has shifted the balance, which continues to shift as lifetime boxes leave service and fewer new boxes have been lifetime.
Fact: TiVo trialed the new pricing plans last year and showed *significant* success. Results were that they improves sales *THREE TO FIVE TIMES* over the old pricing. It is unlikely that such improvement will hold for the widespread rollout, but it is expected to improve sales over the old pricing.
Lifetime, at the existing price point, is not financially viable for TiVo. I'll round to keep it simple. Consider an 80 hour box at $70 after rebate. Lifetime of $300. That's $370. TiVo's subscriber acquisition cost for the past year averaged $190 - that leaves $180 to the amortized over 4 years, just $3.75/month. TiVo's cost for providing service is $2.25/month. Down to $1.50/month - and that's before overhead. If the unit is in use past 4 years, then it is a loss on the books. That's just not financially viable. Lifetime either needed to be priced substantially higher, or be eliminated. TiVo decided it was better to eliminate it.
This is hardly the end of TiVo. Most likely the majority of people who used to buy lifetime, a minority of overall subs, will just switch to one of the new plans. If some small percentage decide to just not get TiVo, that's still better than selling them boxes at the old price point. And, based on the trials, it'll be more than offset by increased subs.
TIVO is fake. Their gator mouth overloads their hummingbird butt. They did away with their lifetime plan, I will do away with them.