May 10, 2018
TiVo, which helped create the digital video recording business, May 10 revealed it is transferring manufacturing, sales and distribution of legacy set-top boxes to a third party.
The unnamed partner will be responsible for all TiVo product sales outside the company’s website, including Amazon and Best Buy, CEO Enrique Rodriguez said on a fiscal call.
“This quarter saw the last MSO hardware revenue as we completed fulfillment of orders made last year,” Rodriguez said. “Once we complete this transition, we still will have direct consumer hardware sales through TiVo.com which we will be fulfilling through this box manufacturer.”
The CEO said that future hardware sales would be facilitated through the partner, with TiVo acting as a distribution channel. The change should have little impact on consumers.
“Basically, the consumer will continue seeing a TiVo-branded device … with TiVo software that they have known over the years,” Rodriguez said.
He said Amazon and Best Buy are better suited to sell hardware than TiVo, which was acquired by Rovi Corp. in 2016, with Rovi assuming the TiVo corporate name.
“We’re very confident in [the partner’s] ability to succeed there,” Rodriguez said.
Indeed, TiVo generated the bulk of first-quarter (ended March 31) revenue ($189.8 million) from licensing, services and software ($186.1 million), with hardware generating $3.6 million. The tallies trailed year-over-year total revenue ($205.7 million), licensing, services and software ($190.5 million) and hardware ($15.2 million).
TiVo is also exiting so-called non-core revenue channels, including Legacy TiVo Time Warp IP deals, hardware and analog products. Indeed, non-core revenue declined $25.7 million in the quarter compared to the previous-year period.
Finally, TiVo cut its fiscal loss in half to $17.7 million from $34.6 million last year.