TiVo Raises Price for 'Lifetime' Membership
Fri Jan 31, 4:06 PM ET
NEW YORK (Reuters) - TiVo Inc. (NasdaqNM:TIVO) in March will increase the price for a long term membership to its television recording service by $50 to $299, the company said on its Web site on Friday.
The new price, which is effective on March 3, covers the "Product Lifetime" of the TiVo machine, a digital video recorder (DVR) that allows users to save programs on a set-top box with a hard drive.
Alviso, California-based TiVo derives most of its revenue from fees for its service, which can automatically record programs based upon a user's personal viewing choices, or save an entire season of a particular show.
The increase come roughly one year after TiVo raised the "lifetime" price to $249 from $199.
A TiVo representative declined to comment on the price change, but said the company will continue to also offer the service for about $13 a month.
TiVo is the leading developer of TV recording systems, competing with companies such as SONICblue Inc. (NasdaqNM:SBLU), Echostar, and Thomson's (TMS.PA) RCA brand, which each offer rival machines.
However, TiVo has struggled to convince a larger mass of consumers to first spend hundreds of dollars on a television recording device, then pay a fee for TiVo's service. TiVo's has more than 500,000 subscribers and in 2004 expects that figure to double, topping 1 million.
Shares of TiVo's rose 5 percent to $5.26 in late afternoon trade on the Nasdaq.