Please find the case study 'Strategic Inflection: TiVo in 2003 from Harvard business school'. You will have to pay $6 to view it. (Sorry)
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Tivo is a leading provider of digital video recorders (DVR) which let the viewers to record live TV channels. The firm sells its products directly and indirectly (through original equipment manufacturers). Company’s products have a very loyal customer base due to the differentiation and strong brand equity. However developments in the technology and transition from analog to digital set-top boxes in the recent years is a big threat for the firm. In the beginning Tivo customers had the option to purchase DVR’s with 40 to 80 hours of recording time plus they had to pay for the service. This could be done as one-time up-front fee once as well as paying on a monthly basis. Tivo DVR’s also required users to have internet connection as well as TV connection which created extra costs. When the company launched its Tivo Series2, it could be able to broaden its services to digital music, broadband video on demand and then Home Media Option as a premium service. If the customers had more then one Tivo DVR, they could also be able to use one for recording and the other for viewing. This was an important characteristic that increased the usability of its players and boosted the overall sales.
The Tivo DVR players are actually computers with a large hard disk and Linux Operating System. They are very secure with the cryptography softwares inside. Tivo can also be able to monitor and analyze viewing habits of its customers by regularly uploading batch files to the DVR players which gives the company more realistic data than traditional surveys. The firm can be able to reduce broadcast center costs much more then local internet services, by using its huge subscriber volume. This is a serious competitive advantage. However the DVR players are not built as an ...
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