TiVo subscribers down 146 thousand in quarter to end-July 2009Wednesday, August 26th, 2009
TiVo Reports Results for the Second Quarter Fiscal Year 2010 Ended July 31, 2009
ALVISO, Calif. — TiVo Inc. (NASDAQ: TIVO), the creator of and a leader in television services for digital video recorders (DVRs), today reported financial results for the second quarter ended July 31, 2009.
For the second quarter, service and technology revenues were $48.8 million, compared with $53.5 million for the same period last year and $48.5 million in the prior period.
We recently announced that RCN has chosen TiVo as its primary DVR offering. This will be the first time any cable provider is utilizing both TiVo’s hardware and software platforms, helping RCN provide its customers a seamless experience that fully integrates RCN’s linear and VOD service with a complete array of TiVo delivered broadband content.
Updating the progress of Comcast roll-out, Mark Hess, Comcast Senior Vice President of Video Products, said, “As anticipated, TiVo On-line Scheduler has started its early roll-out in our Boston market. We’re also excited about launching the Comcast-TiVo product beyond our Boston market and are now in the initial preparation phases for taking it to an additional yet-to-be announced market as well as for our previously announced plans to offer it as the primary DVR option in another yet-to-be named market.”
The new DIRECTV TiVo HD DVR remains on track for its rollout and, once launched, it will be immediately accessible to DIRECTV’s entire national customer base.
We have now come upon the one-year anniversary of our successful launch with Australia’s Seven Network subsidiary, Hybrid Television Services. Earlier this year, TV New Zealand, New Zealand’s largest free to air and national broadcaster, took an equity stake in Hybrid Television Services paving the way for the promotion and distribution TiVo in New Zealand by the end of 2009.
On the TiVo-Owned side of the business, this quarter we announced a significant strategic alliance with Best Buy, which we believe has the potential to meaningfully increase standalone sales.
TiVo-Owned subscription gross additions for the second quarter were approximately 31,000, compared to 36,000 gross additions for the year-ago period. The TiVo-Owned monthly churn rate was 1.5%. Overall, TiVo-Owned subscriptions ended the quarter at 1.6 million. Cumulative total subscriptions as of July 31, 2009 were approximately 3.0 million.
Subscriptions (in thousands):
Three Months Ended July 31, ------------------ 2009 2008 ------- ------- TiVo-Owned Subscription Gross Additions 31 36 Subscription Net Additions/(Losses): TiVo-Owned (42) (42) MSOs/Broadcasters (104) (136) ------- ------- Total Subscription Net Additions/(Losses) (146) (178) Cumulative Subscriptions: TiVo-Owned 1,582 1,686 MSOs/Broadcasters 1,468 1,937 ------- ------- Total Cumulative Subscriptions 3,050 3,623 % of TiVo-Owned Cumulative Subscriptions paying recurring fees 59% 60%
Included in the 1,582,000 TiVo-Owned subscriptions are approximately 219,000 lifetime subscriptions that have reached the end of the period TiVo uses to recognize lifetime subscription revenue. These lifetime subscriptions no longer generate subscription revenue.
The TiVo-Owned lines refer to subscriptions sold directly or indirectly by TiVo to consumers who have TiVo-enabled DVRs and for which TiVo incurs acquisition costs. The MSOs/Broadcasters lines refer to subscriptions sold to consumers by MSOs/Broadcasters such as DIRECTV, Cablevision Mexico, Seven (Australia), and Comcast for which TiVo expects to incur little or no acquisition costs.