Legal costs take toll on TiVo performance

TiVo logo

The hefty cost of mounting a patent dispute has taken its toll on TiVo, the US pioneer of digital TV recorders (otherwise known as personal video recorders or PVRs).

TiVo's losses in the three months to the end of April mushroomed to $6.45m, compared with a loss of $892,000 the same time last year. Revenues were up 50% to $59.2m.

TiVo had 4.4m subscribers at the end of July, up 24% on the year. TiVo has been hit by the launch of rival digital TV recorders by US cable and satellite groups, though TiVo claims some infringe its patent on the underlying technology.

Last week US satellite broadcaster EchoStar won a stay of execution after a federal appeals court temporarily blocked an order that would have forced it to disable millions of its digital video recorders in a dispute with TiVo. In April a US court ruled EchoStar had infringed TiVo's patented 'time warp' technology, allowing users to watch one television show while simultaneously recording another.

TiVo CEO Tom Rogers said the quarter marked a period of "significant activity" for the company as it "released a number of key product features that are clearly differentiating TiVo from its generic competition".

Meanwhile TiVo announced it had concluded a consumer research deal with advertising group Omnicom. Under the deal TiVo will provide audience measurement data to Omnicom companies.

Lovelace Consulting  |  01.09.2006

Previous story  |  Next story