TiVo Raises Rates, Pushes 'Free' DVR

By Ed Oswald, BetaNews
November 6, 2006, 12:11 PM

TiVo has silently raised its monthly service rates by as much as 54 percent
depending on the plan selected, a move that has been criticized by some of
its users. Effective this month, service plans with new contracts could be
as high as $19.95 USD per month.

its_my_dime...

There are several video + hard drive + DVD recorders on the market and more
coming every month. Some have a TV guide service very much like TIVO.
Others need to be programmed like a VCR.

In my experience (we have both a TIVO and a DVD recorder), TIVO is more user
friendly. The software is better, especially the season pass manager.
Also, making the fast forward "back up" of about 7 seconds to compensate for
reaction time is brilliant.

Still, for many viewers, the one shot purchase of a DVR (that also has the
ability to permanently archive recordings by burning a DVD) may be a much
better deal than TIVO.

telenovels...

Yet another reason to keep using my S-VHS vcr. It's monthly service

Quiet Desperation...

Grandma? Is that you?

fee is $0.00.

Quiet Desperation...

Well, you have to remember some of us have marketable skills, and hence
can afford such conveniences.

HEY! I TEASE! LAUGH! :D

That figure is for a one-year contract, although consumers would be able to
save money by extending their contract by more than one year. A two-year
contract would reduce the rate to $14.95 USD per month, which would be a 15
percent increase. If the user decides on a three-year contract, the rate
would remain at the current $12.95 USD per month.

The Multi-service discount rates have also changed similarly: $13.95 USD for
one year, $8.95 USD for two years, and $6.95 USD for a three year contract -
the same rate as it was before the price increase.

Those currently paying month-to-month appear to be grandfathered at the
$12.95 per month plan under the new pricing structure. However, those on
current prepaid plans would be subject to the new pricing.

Prepay plans would range from $199 for the one year, or about $16.58 per
month, to $349 for three years, or $9.69 per month.

Criticism of the price hike was near immediate. "TiVo's doing a good job
here confusing consumers and pricing themselves right out of the DVR
market," Dave Zatz of the Zatz Not Funny web log wrote in a post Sunday.

Respondents to his post echoed such concerns. "Most people who are
considering Tivo are on the fence at $12.95 and three years for that price
is a long commitment! There is no way that people will go for $19.95 on top
of their cable or satellite bill," a poster named CheezWiz said.

However, others noted that the rates that include a box have not changed.
"On closer inspection, I don't think rates have really gone up. You're just
getting a free box no matter what," a poster named peteypete wrote.

Others pointed to the total cost of DVR solutions from cable providers like
Comcast would be roughly the same as the $19.95 monthly fee now charged by
TiVo.

A request for comment from TiVo was outstanding as of press time.

KenStahl...

What about those who bought the "lifetime" plan (or whatever
is the proper terminology)?

its_my_dime...

Still good for the life of your TIVO (not your life).

KenStahl...

That's what I meant.

The trick with that, of course, is that they keep coming out
with improvements and at some point the cumulative number of
improvements in the newer machines will be such that I'll
decide that I can't live without them and buy a new model -
and start all over again on the machine lifetime plan.

its_my_dime...

More likely, the machine will ultimately stop working...probably because
the hard disk(s) will die. There are some companies that will replace the
disks, but not many and the replacement is expensive.

Since Tivo is no longer selling the lifetime subscription, they will
eventually burn off.

Donna B...

The machine lifetime plan is no longer offered.

KenStahl...

That is not good news. It will definitely influence my
decision the next time around. Perhaps by then there will be
other serious competitors so that I have a choice.

Donna B...

Well, for now, it's a very good reason to keep my current TiVo 'alive'.

Hunter Rose...

You don't consider ReplayTV a serious competitor?