The End of TiVo?

Contemplating life without my TiVo is a scary prospect but the Yankee Group says that might just happen in the near future. The technology research and consulting firm recently announced that their research shows that the standalone DVR product category will cease to exist by 2010, and its dissolution will result in the end of TiVo as we know it.

According to the Yankee Group Report, Technology on Fast Forward: 2006 to 2011 US DVR Forecast, even as DVR growth accelerates, TiVo will struggle to remain relevant in the market. They conclude that TiVo will begin to shed subscribers during the forecast period while service providers will continue to capitalize on the emerging technology and no entry cost hardware to incrementally up-sell subscribers to new services.

"The five year outlook for the DVR in the home is one of unmitigated growth and opportunity. As new technology emerges, it is important that advertisers, service providers and broadcasters remember that taking away [consumer's] ability to skip commercials is not an option," said Joshua Martin, Yankee Group, Consumer analyst. "The answer lies in innovation and evolution to reach the mass and niche markets moving forward because the era of the 30-second spot is fading away for all age groups and demographics."

During the forecast period, DVRs will become commoditized, resulting in the end of TiVo. However, according to Martin, "TiVo has incredible brand value that resonates with customers and it will be an asset to any service provider, increasing the likelihood of an acquisition."

For more information, check out the press release.