Television recording technology company TiVo Inc. on Wednesday said it cut prices on its home networking services and set-top boxes sold at some stores, a major step in its subscriber growth plan.
The new pricing plan comes one day after DirecTV Group, the biggest supplier of new subscribers to TiVo, said it had sold its stake in TiVo. While DirecTV said its relationship with TiVo remains strong, some analysts suggest the ties between the companies have weakened.
Under the new pricing plan, the first TiVo service subscription in the home will remain at $12.95 per month, while each additional subscription will cost $6.95 per month. That would be nearly half the current subscription fee for additional TiVo boxes, TiVo said.
TiVo also said some retailers would offer a 10 percent discount on TiVo DVRs with a mail-in rebate.
TiVo on Wednesday said that it would now offer as a standard feature a system that connect TiVo's Series2 digital video recorder (DVR) to users' home computer network.
The system, previously called the Home Media Option and offered at a $99 one-time-fee, lets TiVo users schedule TV recordings from the Internet, move content between two or more TiVo boxes in the home, and enjoy their digital music and photos on a home TV or stereo.
TiVo is fighting to differentiate itself from other TV recording systems, including recordable DVD players, and DVRs from consumer electronics makers. TiVo devices also automatically record programs based on a user's viewing habits, and provide other kinds of unique programming and services.
In March, the company said it plans to spend an additional $50 million in marketing and promotions -- including an advertising campaign in the latter half of 2004 -- to speed its subscriber growth.