Tivo reduces prices of its recording products

Tivo reduces prices of its recording products

TiVo Inc. is facing the heat of the competition and the declining interest in their products. As a result, the company has decided to lower the prices of their recording products to lure in more customers and increase their user base. The California based tech company has announced a $150 mail-in rebate. This scheme lowers the price of their Series2 box to $50. This comes a year after Tivo announced a $100 rebate, which reduced the price of their units to around $100.

Chief Executive Tom Rogers said in a statement that with a price of USD 50, there is no justifiable reason for anyone not to get a Tivo at his place and use it! Tivo is working hard at improving sales of its standalone products. They already were disappointed with their partnership with satellite TV provider DirecTV Group Inc. and they are still waiting for their new partnership with Comcast Corp. to kick in.

The latest result of sales for the company has been disappointing with just 40,000 customers added in the last year. This is not impressive when compared to the 63,000 customers Tivo added last year. These figures are for sales of standalone units. The company had 214,000 customers with their partnership with DirecTV.

The company’s chief executive also warned the board that the spending on marketing for the company would increase in the coming months as they are working hard on luring in new customers to increase their user base. They have already withdrawn their earlier expectations to reach profitability by the fourth quarter and are looking at losses in the current quarters.

Tivo has also launched some promotional schemes to entice customers into referring their services to their relatives and friends… this include some cash prices from lucky draw schemes.