TiVo To Launch Service In Mainland China In August
July 20th, 2006 Davis Posted in Disclosure - I own stock in co. mentioned, TiVo |
To date, everybody has been focused on TiVo’s problems securing cable deals in the US, but as the PVR proves to be an international hit, I believe that critics may be missing the forrest for the trees when it comes to TiVo’s cable licensing opportunities. Every since December 2005, TiVo has been selling service in Taiwan under their subsidiary, TiVo Greater China (TGC). Now, Digitimes is reporting that TGC chariman and CEO Ta-wei Chien has indicated that he expects a TiVo launch in Shanghai, sometime in August and that they have signed an agreement with SiTV of Shanghai Media Group. Pricing on the box is between approximately $300 - $400 depending on whether you want an 80GB or 160GB box, but the article doesn’t mention whether this includes guide data fees or not.
I’ve always been curious at to how much appeal TiVo would have to customers outside the US. On one hand, I think that there is an undeniable universal appeal to time shifting and the PVR, but on the other hand, US brands don’t always translate well in international markets. Add to this the unpredictability of piracy in China and there are a lot of question marks for anyone considering launching a business in China. One thing that I do think that TiVo did right in setting up TGC, was that they choose to take a minority stake and to partner with established players in the area. By doing this, I believe that they will receive more support from the Chinese government when it comes to fighting piracy and when it comes to implementing the service. Only time will tell if the Chinese culture will embrace the TiVo software, but with an August launch schedule, it sounds like it won’t take much time to start learning the answers to some of these questions. The only question now is whether the US series 3 comes out first or if TGC introduces their boxes in Shanghai beforehand.
July 20th, 2006 at 4:06 am
Does TiVo have all that much IP to steal? I was always under the impression that its advantages lay more in the service it provides than in either the hardware or the software. Am I right?
July 20th, 2006 at 5:33 am
If TiVo’s prorietary strength was time shifting, I think I would agree that this wouldn’t be a concern, but the truth of the matter is that generic PVR’s have caught on in the US and China has been offering them for some time now. Given that the generic competition for the service that TiVo invented, I think that the real advantage to TiVo is their superior user interface and the stability of their box. In the US, I think consumers would naturally prefer TiVo over a generic DVR given the chance to experience both, but in China, I wonder if TiVo’s operating system will be well received or if it will be so well received that imitators will try and create their own TiVo software. It could be that I’m overthinking this, but given Microsoft’s problems in China, I think that there is a concern there when it comes to a living room operating system. The question in my mind has less to do with whether or not China will embrace the PVR and time shifting, but more whether or not they will embrace the TiVo software and if they do, whether or not they’ll protect it from piracy. In the end that superior user interface really is all that separates TiVo from their competition.