TiVo Mulls Going Private, Among Other Strategic Alternatives

Digital video recording pioneer TiVo is pursuing range of strategic alternatives, including returning to private status, in an effort to enhance shareholder value, new CEO Enrique Rodriguez said on the Q4 (ended Dec. 31, 2017) fiscal call.

Despite myriad technology license agreements in place industrywide, including with four of the five top online TV services (Sling TV, DirecTV Now, PlayStation Vue and YouTube TV), in addition to Discovery, HBO, Netflix, CBS Interactive, A&E Network and Sony Pictures Entertainment, TiVo saw quarterly revenue fall 15% to $214.2 million compared with revenue of $252.3 million during the previous-year period. Net income topped $18.4 million compared to $9.8 million last year.

Meanwhile, TiVo shares have lost nearly 30% of their value over the past fiscal year.

As a result, Rodriguez is considering a series of moves aimed at upping the shareholder price. Tech advancements include the “TiVo Experience 4,” which enables users to more easily to search, navigate, buy or rent movies, TV shows, recorded content and over-the-top video via a voice-activated remote.

TiVo is also suing Comcast, claiming the cable giant’s X1 set-top violates eight of its patents.

“We need to determine the optimal path to maximize our value proposition, so we can best deliver value to our shareholders,” Rodriguez said. “We have enlisted LionTree Advisors, to assist us in this process.”

News of a possible return to private ownership sent TiVo shares up more than 10% in afternoon trading.

TiVo: Average Global Viewer Watches 4.4 Hours of Video Daily

Fueled by more than $130 billion investment in programing globally, the average person watches more than four hours of video on a daily basis, according to new data from TiVo.

The United States tops all countries with 5.1 hours spent per day on average consuming video. Other documented regions included the Brazil (4.7 hours), United Kingdom (4.2), Columbia (4.1), Mexico (4.1), France (3.7), and Germany (3.3).

TiVo said the average person spends 28 minutes daily searching for video content, based on online survey of 8,500 pay-TV and over-the-top video respondents.

“Viewers, content owners, new streaming services and devices have created a feedback loop where both supply and demand have grown exponentially,” wrote Jocelin Lee, senior manager, strategic research & market insights, and co-author of the report.

While 87% of U.S. respondents said they subscribe to pay-TV, 64% also pay for streaming video, including 44% using a streaming media device.

Not surprisingly, Netflix dominates among SVOD services with 82% penetration in the U.S., followed by Amazon Prime Video at 47% and Hulu at 32%.

Netflix’s highest regional penetrations include Mexico and Brazil at 91%, respectively. By comparison, Netflix has 65% penetration in France.

Among streaming devices, Roku (29%) enjoys a slight lead over Google Chromecast (21%), followed by Apple TV at 18% market penetration. Google Chromecast enjoys superiority in Columbia, Brazil, Mexico and France – all countries Roku is not sold.

Amazon Fire TV Stick ranks No. 1 in the U.K. and Germany – two strong Amazon ecommerce markets.

TiVo Ups Google Deal to Include YouTube TV

TiVo Jan. 18 announced an updated patent license agreement with Google that includes the search behemoth’s online television service, YouTube TV.

The deal covers Google’s use of TiVo’s technologies worldwide and offers a license for Google’s products and services across Internet-based platforms and devices.

Launched last spring, You Tube TV offers access to more than 40 pay-TV channels starting at $35 monthly. The app enables subs to watch programing on computers, portable devices and connected LG and Samsung TVs, or televisions employing Chromecast, Android TV, Xbox One or Apple Airplay streaming media devices.

TiVo, which helped create the digital video recorder market in the ’90s, licenses software applications that help track user data, remote control functions, program search, channel listings, transactional VOD support and other backend technology.

“The world of video entertainment is expanding with exciting new consumer offerings such as YouTube TV,” said Arvin Patel, EVP and chief intellectual property officer, Rovi Corp., a TiVo company.

 

TiVo Says 20% of Daily Life Spent Consuming Video

Television tech company TiVo Jan. 9 revealed that the average global consumer spends almost five hours daily consuming and searching video entertainment – about 20% of daily life.

The results are from a survey of 8,500 pay-TV and over-the-top video subscribers across the U.S., Europe and Latin America.

“Consumers today are acting as their own aggregator, piecing together what they need from a variety of video service and device combinations to suit their individual needs,” Paul Stathacopoulos, VP of strategy, said in a statement.

Indeed, while 90% of households still subscribe to pay-TV – including 50% who have been with their operator at least four years – more than 60% also subscribe to a SVOD service such as Netflix, Amazon Prime Video and Hulu.

The United States ranks No. 1 in average daily viewing hours with 5.1, followed by the Brazil (4.7 hours), United Kingdom (4.2), Columbia (4.1), Mexico (4.1), France (3.7) and Germany (3.3).

Among SVOD services, not surprisingly Netflix dominates – except in Germany where Prime Video controls 69% of the market followed by Netflix and Maxdome at 42% and 12%, respectively.

Notably, despite marketing push toward mobile viewers, the vast majority(77%) of video consumers do so on a traditional television, followed by desktop computers (from 12%), smart phones and tablets (6%).

Roku continues to lead the U.S. streaming media device market (29%), followed by Google Chromecast (21%) and Apple TV (18%). However, Google, Apple and Amazon Fire TV Stick control the global market.

“Success in this new environment will not be about a single content source monopolizing the living room, instead it will be about adapting the business model to deliver value, integrated services and personalization to meet the evolving consumer needs,” said Stathacopoulos.

 

 

 

TiVo Unveils Next-Gen Platform

Entertainment technology company TiVo Corp. Jan. 4 announced the launch of a new cloud-based, next-gen platform designed to offer consumers hyper-personalization, recommendations and voice control, as well as integration of content across linear, over-the-top, on-demand and DVR platforms for multiscreen capabilities.

“Consumers face a fragmented, ever-changing media landscape as new services, content sources and devices continue to proliferate,” said Michael Hawkey, SVP and GM, user experience, TiVo, in a statement. “Media companies are compelled to evolve. TiVo’s Next-Gen Platform is specifically designed to meet the consumer’s insatiable desire for entertainment while enabling operators to maintain market share and remain relevant amid growing competition.”

“User experience defines the operator’s video services for consumers,” said Brett Sappington, senior director of research at Parks Associates, in a statement with the TiVo announcement. “Every pay-TV service and streaming video service is working to capture and maintain consumer attention in order to drive ongoing use and monetization. As a result, operators need a flexible platform that allows them to innovate rapidly and meet or surpass connected experiences offered elsewhere.”

The platform allows providers to deliver content to customers where they want to watch it — including managed set-top-boxes such as Linux and Android TV as well as unmanaged bring-your-own devices such as Apple TV, Amazon Fire TV, mobile and web, according to the release.

Another key feature of the next-gen platform is its versatile deployment options —from full IPTV to hybrid, according to the company. The solution assists operators in their transition to IPTV by maintaining support for QAM deployments, while still offering a flexible migration path by addressing the capital expenditure, networking and rights constraints of the operator. The unified backend enables simplified operations and a consistent experience across an operator’s customer base, the company announced.