TiVo Inc. Monday announced a series of coordinated initiatives that will officially launch on August 11, 2004 to support the company’s growth strategy. These initiatives include a new low priceof $99 after rebate, a newly designed TiVo box, and expansion of the TiVo retail footprint to some of the largest retailers in the country. These moves will be supported by a nationwide advertisingcampaign that kicked off this week, and an innovative rewards program to promote new subscriber referrals. Collectively, the elements of this growth initiative are expected to fuel the mostaggressive subscriber growth period in the company’s history.
“Breaking the $100 threshold and expanding our distribution footprint now puts TiVo within reach of many more consumers,” Brodie Keast, EVP and general manager of the TiVo service. “The advertising campaign, tivo.com, and the unique rewards program will be the primary channels to communicate to existing and potential new customers everything TiVo has to offer.”
These initiatives, which kick-off on August 11, bring to fruition a plan TiVo unveiled in March, when it explained to investors and analysts that the company would invest in subscription acquisition activities focused on accelerating growth.
The new rebate brings the introductory price on the TiVo box to just $99 for the 40-hour model. Consumers will receive a $100 cash back mail-in rebate on TiVo box purchases between August 11 and September 30, with service activation before October 31. The rebate also lowers pricing on all other TiVo boxes. The 80-hour model will now cost just $199 and the 140-hour only $299. Other TiVo products are eligible including models manufactured by Toshiba, Pioneer and Humax.
TiVo unveiled a new box design, which was developed to reduce manufacturing costs and lower prices. The new boxes feature a refreshed, updated user interface, along with the easy-to-use and exclusive features of the TiVo service.
TiVo is also announcing expanded retail distribution in national retail stores across the country. In the coming weeks, TiVo DVRs will be available nationwide on retail shelves in Sam’s Club, CompUSA, Target.com, Fry’s Electronics and Costco in key retail markets and Costco.com. These retailers offer increased retail availability for TiVo in addition to long standing TiVo retail partners like Amazon.com, Best Buy, Circuit City, Dell.com and Good Guys.
“TiVo is committed to offering consumers the best home entertainment experience by providing them with unmatched service features that are so easy, everyone in the home will use it,” said Susan Cashen, vice president, marketing. “Combined with our $99 offer and new retail partners, we’re making TiVo boxes accessible to many more consumers.”
To help support its growth initiative TiVo also launched a nationwide print advertising campaign to promote the new price-point for TiVo boxes.
The campaign, which debuts this week and runs through December, will appear in such magazines as Architectural Digest, Bon Appetit, Conde Nast Traveler, Cooking Light, Entertainment Weekly, Esquire, Golf Digest, Men’s Health, Newsweek, The New Yorker, Parents Magazine, People, Real Simple, Rolling Stone, Sport Illustrated, Sync, This Old House, Vanity Fair, The Wall Street Journal and Wired as well as with full page ads in USA Today. The print ads highlight the new pricing and the value of the TiVo service for consumers with busy lives.
The campaign targets active consumers with a wide range of lifestyle interests and passions, using illustrations, and multi-page ads to establish the TiVo service as an invaluable tool for consumers to connect with the entertainment they care about. The campaign will also feature radio advertising in key regional markets.
“The TiVo target is the opposite of couch potatoes