[opendtv] Re: news: Apple Deal Would Be Rotten for TiVo

Tivo's maybe were first sold as a service but I don't think that works 
anymore. It is not really possible to sell guide data service that 
competes well with what the cable & sat companies have.

So I think PVR's are just hardware now.  If they can't be sold 
competitively that way then they are likely in deep trouble.

- Tom


Donald Koeleman wrote:

> The deal may be good for Apple, enhancing the mini enabling the much
> anticipated and talked-of new video and multimedia service, but according to
> Phillip it's not so good for Tivo.
> 
> Donald
> 
> Apple Deal Would Be Rotten for TiVo
> http://www.tvpredictions.com/appletivo022405.html
> 
> The DVR service needs a new owner who can
> generate subs quickly. And that's not Apple. By
> Phillip Swann
> 
> Washington, D.C. (Feb. 24) -- TiVo's stock has
> jumped approximately 20 percent over the last two
> days on rumors that Apple Computer will buy the
> Digital Video Recording service.
> 
> By late Thursday, however, the rumors appeared to
> be fading, which is good news for TiVo fans.
> Apple is one of the last companies that TiVo
> should consider as a prospective owner.
> 
> Yes, TiVo is in trouble -- and it needs a new
> owner to survive for the long term, in my humble
> opinion. The company's partnership with satcaster
> DIRECTV is shaky and cable operators are
> reporting that more subscribers are signing up
> for non-TiVo DVR services. TiVo could soon find
> that it doesn't have a way to generate new
> subscribers, except at retail, which is both
> costly and uncertain.
> 
> Consequently, TiVo would be wise to sell the
> company to a cable or satellite operator
> (DIRECTV, Comcast, Time Warner), which could
> offer its recording service to their subscribers
> indefinitely. (Editor's note: Despite the rumors,
> TiVo CEO Mike Ramsay has denied the company is
> for sale.)
> 
> But Apple, whose core business is personal
> computers and portable music players (the iPod),
> could not deliver one cable and/or satellite
> subscriber, at least not immediately and perhaps
> never. Over the years, Apple has developed few,
> if any, relationships with TV-based companies.
> With Apple as its owner, TiVo would not be any
> better off than it is today. In fact, it would
> probably be in worse condition because it would
> have to go through some transition pains from the
> sale.
> 
> (One note: TiVo would certainly benefit from the
> savvy and stability of Apple CEO Steve Jobs.
> TiVo's management is in chaos with the
> resignation of company president Marty Yudkovitz
> and the expected resignation of CEO Ramsay;
> Ramsay will stay on as chairman, he says. Despite
> his inexperience with the TV business, Jobs is a
> quick study.)
> 
> Some uninformed analysts have suggested over the
> last few days that Apple should make the deal
> because it could offer TiVo's recording/video
> service to its iPod customers. Yes, it could, but
> how many would subscribe? Portable video is a
> risky proposition at best. While Americans love
> to listen to music on the go, few may be
> interested in watching videos on small screens
> while attempting to walk down the street or
> perform some other daily task.
> 
> If Apple wants TiVo for the iPod, it should save its money.
> 
> Other analysts have suggested that Apple could
> use TiVo on its new mini-Mac, which could be used
> as an entertainment hub in the living room. The
> thinking is that viewers would record shows on
> their mini-Macs and transfer them to their TVs
> when they want to watch them.
> 
> However, the concept of the PC as a media center
> has failed before and it will fail again. Most
> Americans are not ready -- and may never be ready
> -- to use their personal computers in the living
> room, no matter how small they may be. People
> want television to be simple, not more
> complicated.
> 
> And that's why TiVo, a TV recording device, needs
> to partner with a TV company, not a PC company.
> 
> Phillip Swann, president of TVPredictions.com,
> has been quoted on TV technology in dozens of
> publications and by broadcast outlets, such as
> The Chicago Tribune, The Hollywood Reporter, Fox
> News and CNN. If you would like to contact Mr.
> Swann, he can be reached at 703-505-3064 or at
> swann@xxxxxxxxxxxxxxxxx
> 
> 
> 
>  
>  
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