"Consumers are now ingrained with the idea they get a DVR for free. But with
TiVo, it's pay up front and then $12 to $15 month," said Jeff Schreiner, an
analyst with American Technology Research. "This new model fits TiVo better
because they don't have to sell the hardware to the individual to get them
to use the product."
The other good news is the continuing patent battle with satellite
television provider EchoStar Communications Corp. TiVo originally sued
EchoStar for patent infringement in 2004 and won an $89.6 million judgment
last year. In oral arguments last week in EchoStar's appeal, a three-judge
panel seemed to suggest it would rule at least partially in favor of TiVo.
A final decision is not expected for several months and could still be
appealed to the Supreme Court. But analysts say TiVo is in a good position
to win and reap a potential windfall, depending on the extent of the court's
ruling.
If all goes TiVo's way, it could take in money from EchoStar and also go
after other DVR-makers, demanding licensing fees for its technology. Or it
could go straight to other television providers who sell DVRs and secure
deals for its TiVo software.
"If they win it, this could be really big for TiVo," said Kunal Madhukar, an
analyst with Bear Stearns & Co. "The EchoStar settlement alone could mean 5
to 6 dollars more per share."
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/10/13/BUORSP7UP.DTL