# Tivo drops their prices!



## Chris Blount (Jun 22, 2001)

TiVo Issues New Series2 Price Points

40-, 80-Hour DVRs Become More Affordable

TiVo issued a price change that will for the first time push the entry price point on the Series2 digital video recorder (DVR) to under $200. TiVo Series2 DVRs will be available starting at a manufacturer's suggested retail price of $199 for the 40-hour, and $299 for the 80-hour model.

The TiVo Series2 DVR works with any TV set-up: Cable, digital cable, satellite or antenna, and comes in models that can store up to 40 or 80 hours of recorded television. The TiVo service is sold separately for $12.95 per month, or a one-time fee of $299 for the lifetime of the product.

Customers who purchase the TiVo Series2 DVR also have the option of upgrading their service to include Home Media Option, a package that includes features like remote scheduling, multi-room viewing, a digital music player and a digital photo viewer. With Home Media Option, programs can be scheduled to record from the Internet and shared between two or more TiVo Series2 DVRs in the home.

And, digital music and photos stored on a PC or Mac can be streamed to the TiVo Series2 DVR to be enjoyed in the living room. Home Media Option is available online at http://www.tivo.com for a one-time fee of $99 for the first TiVo Series2 DVR, and $49 for each additional DVR.

http://www.skyretailer.com


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## Cyclone (Jul 1, 2002)

First bit of stirring for Tivo's impending death throws.


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## juan ellitinez (Jan 31, 2003)

I always thought succesful companies raised their prices :eek2: :lol:


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## dishrich (Apr 23, 2002)

I don't understand how they are lower in price - they have been at these SAME prices for quite some time, except that now you WON'T have to mail in to get a $50 rebate - they now just are taking it off the top, the end result is the SAME price.


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## Guest (Feb 3, 2004)

Last gasp of a dying company. Now their only supporter, Directv is going to push their own homemade PVRs and shy away from Tivo. Tivo = how NOT to run a business.


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## Nick (Apr 23, 2002)

juan ellitinez said:


> I always thought succesful companies raised their prices :eek2: :lol:


Apparently, you are thinking of Wal-Mart.  

There are various factors that determine the price point of a product:

1. supply & demand - when demand for a product exceeds supply, price stays level or increases. The 921 is a good example of this. When supply exceeds demand, prices tend to fall.

2. competition - in a competitive market, equivalent products sold for less by company A will force company B to lower prices.

3. customer acceptance - the best product in the world won't sell if consumers don't understand the primary features of the product and how they will benefit the user. To put differently, don't just sell the steak, sell the sizzle.

For example, the poorly marketed and now defunct VideoGuide was an excellent product & service that was not well understood in the marketplace. I remember looking at the VideoGuide display in Radio Shack 3 or 4 times before I finally figured out exactly what it did. It wasn't until I fully comprehended what VideoGuide could do for me (the sizzle) that I made a purchase decision. Once up and running, I found that I very much enjoyed the convenience of the VideoGuide service.

4. Reputation - as far as the TiVo goes, hardly a day goes by that I don't hear the product mentioned on TV, particularly on talk shows. Oprah Winfrey, Ellen DeGeneres, Jay Leno, and many of their 'celebrity' guests have talked about their TiVos and how wonderful they are. Even CNN's morning news show curmudgeon, Jack Cafferty, has praised the convenience of his TiVo on air.

One would think that all these endorsements and the free publicity would be a marketing bonanza for TiVo. Not necessarily so. The down side for TiVo is that the many viewers now has the impression that since wealthy celebs tout the TiVo, only the wealthy can afford one - along with their fine cars and extravagant homes. Add a lack of understanding of DVRs by the average consumer and what you have is a wonderful product that is largely misunderstood and, therefor, doesn't sell as well as it should.

In my own experience, even with a technical background, when I got my two Dishplayers I had no idea how beneficial to my TV viewing experience the PVRs would quickly become.

Success can be measured in many ways, but in a competitive environment, the most innovative consumer products can succeed only if they appeal to a sufficiently large segment of the marketplace.


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## Jacob S (Apr 14, 2002)

So for lifetime PVR its $500 for the 40 hour receiver and $600 for the 80 hour receiver. Even if it had two tuners at 80 hours it would still be a little more expensive than the 721 but at least you can use it with any receiver or cable system or OTA and change the hard drive yourself. That is a major benefit.


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## Mark Holtz (Mar 23, 2002)

Don't forget... hard drive prices had dropped significantly.


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## Tyralak (Jan 24, 2004)

Chris Blount said:


> TiVo Issues New Series2 Price Points
> 
> 40-, 80-Hour DVRs Become More Affordable
> 
> ...


Yeah, but you still have to pay $13 a month for the privilege of using it. They need to lower THAT.


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## BurgEnder (Aug 15, 2003)

I'd rather get (if I didn't already own) a couple ReplayTV 5504 DVRs for $149.99 each that already does what a $199.00 + $99.00 HMO SA-Tivo Series 2 does, except play .mp3 files, which my DVD player does already.


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