TiVo Project Product Strategy in The Digital Economy

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Product Strategy in The Digital Economy

TiVo Project

Cristian Lopez Saubidet - James Phelan - Pablo Sanchez

Company

Vision: To be the leader in Personal TV

Services.

Hardware Partners: Philips, Thomson and

Sony

Content Partners: AOL and DIRECTV

History:

1997: TiVo founded by Jim Barton & Mike Ramsey

January, 1999: TiVo unveiled for the first time to the public at CES

TiVo System

TiVo System

Recording

Automatic Recording

Search Through Up to 2 Weeks of

Programming

Record by “Wish List” (Favorite Actors,

Sports Teams, or Key Words)

Rate Programming

TiVo System

Live TV

Pause Live TV

Replay Live TV

Parental Controls

Inter-Active TV

TiVo Suggestions

TiVolution Magazine

Network Showcase

Ipreview

Critical Issues Grid

The Company

Will TiVo succeed?

Political

Will TiVo have patent protection?

Behavioral

Economic

Social

How easily will consumers learn to use TiVo?

How much are consumers willing to pay for TiVo system?

How much are they willing to pay for the service?

Will TiVo become fad?

Will consumers embrace TiVo?

Technology

Will TiVo develop new uses?

Critical Issues Grid

Business Ecosystem

Will TiVo succeed?

Political

Behavioral

Economic

Social

Technology

Regulation of content: Copyrights, Ads

How intense will competition be?

Will competitors succeed?

Are there many substitutes for TiVo?

How much of a threat is TiVo to advertising?

How big will the total market be?

Will new segments use TiVo: Education,

Commerce?

Will there be an industry standard?

Critical Issues Grid

Infrastructure

Will TiVo succeed?

Political

Behavioral

Economic

Regulation of Infrastructure: Cable, Satellite,

Phone-lines

Will content availability increase?

Are there many complements for TiVo?

Social

Are there network effects?

Technology

Will infrastructure be able to support the technology?

TiVo’s Network

consumers learn new uses willingness to pay for s fad threat to ads patents standard content availability willingness to pay for s network effects content regulation infrastructure regulatio

Competitors success complements intensity of competition substitutes Customer's embrace new segments size of the market infrastructure support

TiVo's Success

Network Scenarios

3 States: Dominate, Survive, & Die

Scenario 1 (Base)

Dominate = 17.2

Survive = 38.4

Die = 44.5

Scenario 3 (Worst)

Dominate = 0

Survive = 25.0

Die = 75.0

Scenario 2 (Best)

Dominate = 75.0

Survive = 25.0

Die = 5.0

Network Sensitivity

Node

Intensity of

Competition

Market Size

Positive Factor

Negative Factor

State

High

Medium

Low

Large

Medium

Small

Change from Base

Dominate Survive Die

(6.36)

13.22

26.49

13.76

(2.07)

(15.82)

1.11

(1.13)

(6.18)

10.29

(1.08)

(12.41)

5.25

(12.09)

(20.31)

(24.05)

3.15

28.23

0.00

0.00

Conclusion

TiVo needs to work to expand its potential market size

Open up its architecture to a wider base

“TiVo enabled” DVDs, VCRs, and even TVs

Commoditize the product

Push to find new, unexpected markets for its product

Education

Business

Conclusion

TiVo should also work on building a stronger network effect for its products

Complimentary Products(i.e. swappable hard drives, TiVo Storage CDs)

New Revenue Stream

Possibly New Business Models

“Sticky” Services

Put consumer knowledge on server rather than local

Questions???

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