Investing in TiVo Technology TiVo’s Back: The Turnaround Story of the Year By Jim Nelson December 13, 2007 Television pioneer TiVo, Inc. (NASDAQ: TIVO) has struggled over the past few years with competitors like Comcast and Direct TV. After TiVo came out with its breakthrough technology, cable and satellite providers were beating themselves up trying to match it. Most people agree that TiVo’s interface is still the best, but many refuse to pay the still-astronomical prices. It costs $300 for an HD digital video recorder (DVR) box and another $129 for a year of service.
So to combat that, TiVo is starting a new plan of action. At the end of November, it partnered up with NBC to start interactive advertising. When a TiVo user sees an advertisement on one of the 14 NBC Universal’s television networks or 10 owned and operated stations, they can simply click on an icon to gain access to more information on the advertised product. This will make the advertisements far more effective, and give NBC the chance to raise the price of its 30-second commercial spots. With this technology, TiVo is bringing something else to the table. These “tags” give NBC a more responsive approach to its advertising. This technology can send second-by-second viewership ratings on each commercial. ********************************* The $308 Million “Compressed Investing” Secret Find out how a Broadway songwriter packed a lifetime of epic stock market gains...into just four years of remarkable trading success. When this secret way to invest was first tried, in 1955, it turned a $25 investment into $50,000 in just five weeks… Check it out here… ********************************* This will revolutionize the television advertising market. Networks have been long awaiting interactive advertising, but the technology hasn’t yet caught up. Now, with 20% of American households owning at least one DVR system, the marketing revolution can start. TiVo is trying to gain a monopoly on this just like it did originally with TV recording. The company currently has deals with both Comcast and Direct TV, the two behemoths in the TV provider’s universe. In a separate agreement, TiVo and Comcast (as well as Cox) have agreed to offer TiVo’s interface software as a download, instead of requiring the customer to buy TiVo’s expensive hardware. But TiVo is aware that to really stay competitive and unique, it has to diversify away from only television technology. The company has been working on a way to break into the Internet market. In a recent deal with the German software company Nero, TiVo is developing a way for users to download its software onto PCs. And just last week, TiVo partnered up with Photobucket and Google Picasa photo-sharing sites. These deals allow TiVo users to view pictures in high definition on their TV screens like a new type of slideshow. These deals, along with one for movie and music downloads, give the company a good start to its diversification. On a different note, TiVo recently had its “time-warp” patent upheld in a lawsuit against EchoStar Communications Corp. The patent is what allows TiVo users to pause, fast forward and rewind live TV. It is expected that TiVo will receive $90 million for damages of patent infringement. That would give the company an enormous boost, as it is trying to get back into the black. But whether or not TiVo is a good investment depends solely on these deals. If anyone of them falls apart, you can expect TiVo’s revenue levels to crash. But as it stands now, it seems the DVR business is about to revolutionize the television industry yet again. Look for this one to be a solid play for years to come… Sincerely, Jim Nelson P.S.: For penny stock comebacks like this, I’d suggest you listen to what fellow editor Greg Guenthner has to say. He recently picked one that will is set to double or even triple his readers’ money. Here is a free report describing what he calls “Wall Street’s Most Profitable Stock Strings”… P.P.S.: If you want more, then you’re in luck… Until New Year’s Day at midnight, we have opened up membership to our most elite circle of readers. They get just about everything we have to offer, all bundled in one package. Every one of the newsletters you’ll get has the potential to show you double, triple or even quadruple your money back. If you don’t get in now, you will pay for it later… Check it out here… |