TiVo Announces Results for Second Quarter Ended July 31, 2007

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, 2007.

“We made significant progress over the past six months on several areas of our business that we believe will positively impact the growth prospects of TiVo,” said Tom Rogers, CEO of TiVo. “During the quarter, we rolled out a new popularly priced TiVo HD box. In addition, our TiVo on Comcast service is progressing well and importantly, Comcast has agreed to fund substantial development work to bring the TiVo service on Comcast to additional platforms, including Scientific Atlanta set top boxes.”

Last month, TiVo launched a mass appeal high definition unit, which was very well received by the press, industry analysts, and more critically, TiVo’s retail partners. This new product will enable TiVo to more significantly participate in the high definition wave in retail, where there has been an accelerated movement away from standard definition technology to a greater focus on high definition television sales.

Mr. Rogers stated, “Retailers such as Best Buy and Circuit City are enthusiastic about our new HD product and are embracing TiVo in new and unique ways including better merchandising, improved floor placement, demos, and more aggressive positioning of TiVo as a centerpiece to an HD media center. Early indications are that retailer orders are very promising, which we believe will lead to sequential improvements in TiVo-Owned gross additions in Q3.”

Mr. Rogers continued, “The new TiVo HD product was launched with virtually no hardware subsidy through the direct channel and in retail with a lower subsidy compared to the standard definition product. This is another positive step for TiVo’s marketing strategy to redirect investment from hardware subsidies towards a more advertising-centric approach.”

On the mass distribution side of the business, the TiVo on Comcast service continues to progress well and Comcast stated, “we will commence the TiVo rollout process shortly, which will continue rolling out throughout the fall in Comcast’s New England Division including metro Boston, Southeast Massachusetts and New Hampshire.” Very importantly, Comcast has just agreed to fund significant additional development work to bring the TiVo service to other Comcast platforms, including Scientific Atlanta set top boxes. This is a substantial and ongoing commitment to further develop the TiVo on Comcast service and increase the distribution opportunities that TiVo will have available.

Also on the distribution front, during the quarter DIRECTV announced a deal with TiVo to develop a software upgrade to enhance the user experience for DIRECTV customers who have DIRECTV DVRs with TiVo service. The announcement underscores DIRECTV’s commitment to strengthening its relationship with TiVo and further highlights TiVo’s appeal to consumers.

During the second quarter, TiVo recorded a net loss of $17.7 million, which included a combined inventory write-down and inventory purchase commitment charge of $11.2 million, as compared to TiVo’s net loss guidance of $5 to $8 million that didn’t contemplate the inventory related write-down. TiVo’s net loss per share was $0.18. The inventory-related charge primarily relates to long-lead time dual-tuner Series2™ standard definition DVR inventory. Adjusted EBITDA loss for the second quarter was $11.2 million, including the $11.2 million inventory-related charge. This compares to TiVo’s adjusted EBITDA guidance of breakeven to a loss of $3 million, which didn’t contemplate this inventory-related charge.

Earlier this year, TiVo stated a goal of getting closer to Adjusted EBITDA breakeven for Fiscal 2008 as compared to last year. The $11.2 million inventory related write-down of standard definition parts wasn’t anticipated at the time the Company stated its fiscal 2008 Adjusted EBITDA goal. Nonetheless, the goal remains in place, and thus going forward, TiVo continues to expect that a shift away from hardware subsidies towards a more advertising-centric marketing approach will continue to have a positive impact on the Company’s financial profile as compared to last year, as it has over the past two quarters.

Mr. Rogers continued, “Increased consumer demand for high definition products, which accelerated retailers’ movement toward high definition sales, resulted in a continuation of the tepid trend in standard definition sales. Consequently, we ended the quarter with higher than anticipated inventory levels of long-lead time components and parts related to our standard definition product. Because of the continuing HD trend, it was prudent to reserve against this long-lead time inventory. It is noteworthy that the analog basic cable market as well as homes currently not looking to upgrade to high definition television present an opportunity for us as the TiVo standard definition product is the only option for the these approximately 30 million homes where DVRs are desirable. We are not abandoning this space, but have to re-focus our marketing efforts to reach this consumer since retailers are now fully focused on HD.”

Service and technology revenues increased 7% to $56.5 million, compared with $52.8 million for the same period last year. Service revenues were $53.4 million, compared to the year ago quarter when service revenues were $49.4 million. Technology revenues were $3.1 million, which was lower than expected due to timing of development work related primarily to DIRECTV and international opportunities.

Additionally, during the quarter, TiVo strengthened its management team through the additions of key senior hires including Clent Richardson as Chief Marketing Officer and Karen Bressner as the head of advertising sales. Mr. Richardson is an accomplished leader who has directed campaigns that transformed high profile consumer and technology brands such as Apple, T-Mobile and Nortel in North America, Europe and Asia. Ms. Bressner, formerly Senior Vice President of National Advertising Sales for some of Viacom International’s most well known brands, brings to TiVo more than 25 years of experience in developing strategies for sales efforts across national cable television, broadcast, and online. TiVo also retained Cal Hoagland as interim Chief Financial Officer bringing a wealth of experience from managing the finance function for several publicly traded global companies.

TiVo-Owned subscription gross additions for the second quarter were 41,000, compared to 74,000 gross additions for the year-ago period. As has been the case in recent quarters, gross subscription additions were impacted by the pace at which retailers moved to a high definition sales focus. Overall, TiVo-Owned subscriptions totaled 1.71 million, up 136,000 on an annual basis compared to the year ago-period. As expected, TiVo reported a net decline in DIRECTV TiVo subscriptions during the period as DIRECTV is no longer deploying new TiVo boxes. Cumulative total subscriptions as of July 31, 2007 were 4.2 million. Additionally, the monthly churn rate was 1.2% compared to 1.1% in the prior quarter. This increase was in part due to subscribers seeking HD DVR alternatives.

Mr. Rogers continued, “In addition to the introduction of the new HD box and the continuing commitment to TiVo by Comcast, during the first half of this year, four additional major areas of our business became a reality, which we believe will significantly accelerate TiVo’s growth going forward.

“First, we continue to achieve a number of milestones against our strategy to differentiate the TiVo product and service from other DVRs on the market by leading the way in connecting broadband content directly to the television. During the quarter, we announced that subscribers can now purchase or rent premium content from Amazon Unbox directly on the television, rather than going through their home computer first. Amazon continues to encode 1,000 new titles each month, which are all integrated into our universal Swivel™ search functionality. With the upcoming addition of progressive downloading, subscribers will be able to easily and quickly find, download and begin viewing almost immediately the content that they want, when they want.

“Second, we made strides in weaving our way into the fabric of the media industry. Our Audience Research Measurement business is the only provider of second-by-second commercial ratings data for DVR households and this proprietary data is increasingly becoming a crucial element to more critically evaluating advertising purchases. Recently, Media IQ, Media Performance Monitor America and Crispin Porter & Bogusky subscribed to the TiVo Stop Watch™ ratings service, adding to an already impressive list of clients. Also during the quarter, multiple clients subscribed to the TiVo-IRI suite of products, which combine DVR viewing behavior with purchase data in DVR households.

“Third, we continue to work to develop unique advertising solutions aimed at the increasing number of DVR households that fast forward through television advertising. We are seeing strong interest in our advertising business, as evidenced by the impressive turnout at our recent TiVo Ad Council meeting, which gives us the confidence that we will continue to come up with new and unique ways to help marketers create better, more entertaining, and more engaging advertisements, without relinquishing the consumer control that is so important to DVR users. Additionally, as part of our deal with DIRECTV to introduce additional TiVo features for DIRECTV TiVo, we are also adding new forms of advertising inventory directed at TiVo DIRECTV subscribers.

“Fourth, on the international front, we made strong progress. Our deal with Seven Network, Australia’s leading broadcast company, continues to generate excitement in Australia and this quarter we took another important step in our relationship by signing a statement of work. The hardware that we develop for this platform will be based on the digital terrestrial DVB-T standard, which has been adopted to date in 30 countries and is on its way to representing more than 100 million homes by 2009. We believe that development work for this HD platform will be highly leveragable across many more significant international markets, giving us the framework to drive TiVo’s international business going forward. Further, we anticipate Cablevision Mexico will begin distributing TiVo to its customers within the next week or two.

“We are beginning to see the result of these four important elements of our business and believe that over time we will be able to significantly drive both standalone and mass distribution growth.

“Finally, in terms of an update on our litigation with EchoStar, we are pleased that the United States Court of Appeals for the Federal Circuit has scheduled the oral argument in EchoStar’s appeal of the district court judgment of patent infringement for October 4, 2007 with a decision to follow thereafter. This action brings us one step closer to resolution of EchoStar’s appeal and implementation of the district court’s injunction, which has been stayed pending the appeal.”

Management Provides Financial Guidance

For the third quarter of fiscal 2008, TiVo anticipates service and technology revenues in the range of $56 million to $57 million, a net loss in the range of $14 million to $17 million, and an Adjusted EBITDA loss in the range of $5 million to $8 million. Additionally, TiVo’s net income guidance for the third quarter includes an estimated incremental $3 million in non-cash stock-based compensation, which relates to a transition and consulting agreement for Mike Ramsay, which TiVo expects to be effective on September 1, 2007. TiVo does not expect to incur non-cash stock-based compensation expenses related to this agreement beyond the current quarter.

This financial guidance is based on information available to management as of August 29, 2007. TiVo expressly disclaims any duty to update this guidance.

Management’s guidance includes Adjusted EBITDA, a non-GAAP financial measure as defined in Regulation G. TiVo has provided a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) in the attached schedules solely for the purpose of complying with Regulation G and not as an indication that EBITDA or Adjusted EBITDA is a substitute measure for net income (loss).