TiVo Announces New Pricing Plans

TiVo Announces New Pricing Plans

New Bundled Offering, Flexible Pricing and Service Commitments Will Simplify Offering for Consumers

ALVISO, Calif., March 8 /PRNewswire-FirstCall/ -- TiVo Inc. (NASDAQ:TIVO), the creator of and a leader in television services for digital video recorders (DVR), today announced new, simplified pricing plans that will make it easier for consumers to add TiVo to their home entertainment experience. For the first-time ever, through TiVo's direct sales channel, customers will be able to bundle together the purchase of their TiVo(R) 80-hour Series2(R) box and service at an all-in-one price, based on a one-, two-, or three-year commitment. There will be no separate price for the TiVo unit and TiVo(R) service. The specific bundle prices that will be available at www.tivo.com or by calling 1-877-BUY-TIVO are:

* The price for a TiVo box and a one-year service commitment is $19.95 a
month or $224 prepaid
* The price for a TiVo box and a two-year service commitment is $18.95 a
month or $369 prepaid
* The price for a TiVo box and a three-year service commitment is $16.95 a
month or $469 prepaid

TiVo developed these new pricing plans after completing market research among new and existing TiVo subscribers and by conducting extensive testing of the pricing options with randomized group of consumers in the marketplace. The results of the research were overwhelmingly favorable to the bundling together of the TiVo unit and TiVo service. As is the case with subscribing to the TiVo service today, an early cancellation fee will apply if service is terminated prior to the end of the chosen period. In the case of prepaid subscriptions, no refund will be made upon early termination.

"Over the past several months, we have done extensive research on our pricing strategy and distribution model with a focus on finding the simplest and most efficient way to increase sales and drive penetration of the TiVo service among consumers," said Tom Rogers, CEO of TiVo. "After extensive testing and evaluation of various pricing and packaging approaches, we will launch a subscription option that combines the sale of the TiVo service together with the TiVo box. This is great for TiVo subscribers who will now have the ability to get TiVo service with no upfront hardware costs."

As part of the announcement, TiVo is also announcing an update to its service-only options, providing consumers that purchase a TiVo unit at a retail outlet with the option to pre-pay for one-, two-, or three-years of TiVo service. The product lifetime service option will be eliminated next week. With the ability to pre-pay for TiVo service, TiVo is standing by its efforts to deliver choice to its customers and continuing to spread the "TiVo, TV Your Way" message.

"We are committed to providing our customers a great value for their dollar and enhancing our ability to add subscribers through more flexible pricing options," said Mr. Rogers.

The changes to the pricing structure and service-only options will launch next week. The changes will not affect TiVo's current base of subscriptions.

About TiVo Inc.

Founded in 1997, TiVo pioneered a brand new category of products with the development of the first commercially available digital video recorder (DVR). Sold through leading consumer electronic retailers, TiVo has developed a brand which resonates boldly with consumers as providing a superior television experience. Through agreements with leading satellite and cable providers, TiVo also integrates its full set of DVR service features into the set-top boxes of mass distributors. TiVo's DVR functionality and ease of use, with such features as Season Pass(TM) recordings and WishList(R) searches, has elevated its popularity among consumers and has created a whole new way for viewers to watch television. With a continued investment in its patented technologies, TiVo is revolutionizing the way consumers watch and access home entertainment. Rapidly becoming the focal point of the digital living room, TiVo's DVR is at the center of experiencing new forms of content on the TV, such as broadband delivered video, music and photos. With innovative features, such as TiVoToGo(TM) and online scheduling, TiVo is expanding the notion of consumers experiencing "TiVo, TV your way.(R)" The TiVo(R) service is also at the forefront of providing innovative marketing solutions for the television industry, including a unique platform for advertisers and audience measurement research. The company is based in Alviso, Calif.

NOTE: TiVo, Series2, 'TiVo, TV your way.' Season Pass, WishList, TiVoToGo and the TiVo Logo are trademarks or registered trademarks of TiVo Inc. and its subsidiaries worldwide.

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, TiVo's service and marketing plans, future pricing strategies, and other factors that could affect future results. Forward-looking statements generally can be identified by the use of forward- looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in product development, competitive service offerings and lack of market acceptance, as well as the other potential factors described under "Factors That May Affect Future Operating Results" in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2005, and the Quarterly Reports on Form 10-Q for the quarters ended April 31, 2005, July 31, 2005 and October 31, 2005. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. TiVo disclaims any obligation to update these forward-looking statements.

Source: TiVo Inc.

CONTACT: Jeffrey Weir of Sloane & Company, +1-212-446-1878, or
jweir@sloanepr.com, for TiVo Inc.; or Krista Wierzbicki of TiVo Inc.,
+1-408-519-9438, or kwierzbicki@tivo.com

Web site: http://www.tivo.com/

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