UPDATE - TiVo Announces Results for Fourth Quarter and Fiscal Year 2007 Ending January 31, 2007

UPDATE - TiVo Announces Results for Fourth Quarter and Fiscal Year 2007 Ending January 31, 2007

* Service and Technology revenues increased 22% year-over-year to $57.4 million in the fourth quarter

* Net loss was $18.7 million in the fourth quarter, compared to a net loss of $21.1 million in the year-ago quarter

* Adjusted EBITDA loss was $14.2 million in the fourth quarter, compared to a loss of $19.9 million in the year-ago quarter

* TiVo-Owned subscriptions increased 16% year-over-year to end the year at 1.7 million

* Amazon Unbox on TiVo officially launched and now broadly available

ALVISO, Calif., March 7 /PRNewswire-FirstCall/ -- TiVo Inc. (NASDAQ:TIVO), the creator of and a leader in television services for digital video recorders (DVRs), today reported financial results for the fourth quarter and fiscal year ended January 31, 2007.

Tom Rogers, CEO of TiVo said, "Fiscal 2007 was marked by a tremendous amount of progress in differentiating TiVo from generic alternatives and aligning TiVo with numerous companies to weave TiVo solidly into the future of the media world."

Key Fiscal Year 2007 Highlights:

* Made significant progress on TiVo's mass distribution strategy as
the Comcast product entered trials and the Company signed an
agreement with Cox Communications;
* Established TiVo as a leader in providing broadband content directly
to the television set, by introducing numerous broadband content
initiatives, including the announcement last month with Amazon,
providing the only TV-centric approach that brings broadcast, cable
and broadband together;
* Launched a number of distinctive features, including the TiVoCast
service, which enables the delivery of broadband content and home
movies on TiVo DVRs, TiVo KidZone, Guru guide recommendations and
TiVo Product Watch;
* Unveiled the TiVo Series3(TM) High Definition Digital Media
Recorder, considered by many retailers to be the first successfully-
launched CableCard consumer electronics product;
* Signed comprehensive advertising deals with the world's largest
advertising holding companies including, Interpublic Media, WPP's
GroupM network of agencies, and Omnicom Media Group's OMD and PHD
business units, as well as deals with leading television
advertisers, including General Motors, BMW, Lexus, Sprint, HP, and
Nintendo;
* Announced deals with CBS, International Creative Management, NBA,
Reuters, New York Times, CNET, BellSouth, Verizon Wireless,
Rhapsody, among many others, adding to the list of significant
companies, such as Yahoo!, Intel, and Sony, that have aligned
themselves with TiVo in developing their future relationship to the
television world;
* Extended the agreement with DIRECTV for an additional three years,
allowing TiVo to continue to receive subscription fees for the
existing 2.7 million DIRECTV TiVo subscriptions;
* Established an international distribution deal with Cablevisión
Mexico, the largest cable operator in Mexico City;
* Strengthened TiVo's intellectual property position with a trial
court victory against EchoStar in the United States District Court,
Eastern District of Texas.

For the fourth quarter, service and technology revenues increased 22% to $57.4 million, compared with $47.0 million for the same period last year. TiVo reported a net loss of ($18.7) million and a net loss per share of ($0.19), compared to a net loss of ($21.1) million, or ($0.25) per share, for the fourth quarter of last year. Adjusted EBITDA loss was ($14.2) million, compared to a loss of ($19.9) million in the year-ago period. Adjusted EBITDA excludes stock-based compensation, interest income, depreciation and amortization. A reconciliation of Adjusted EBITDA is included below.

Mr. Rogers continued, "TiVo made substantial progress in the fourth quarter in achieving a number of major milestones that will help set the stage for a strong 2008 Fiscal Year." Key fourth quarter and recent announcements include:

* Announced "Amazon Unbox on TiVo," a feature that provides TiVo
subscribers with the ability to rent and purchase movies and
television shows from leading studios and networks including Fox
Entertainment Group, Paramount Pictures, Universal Studios Home
Entertainment, Warner Bros. Entertainment, Lionsgate, CBS and just
today we added Sony Pictures. This is a major step in making
premium broadband content available to consumers. The feature
recently launched and is now available to all TiVo subscribers with
a broadband connected TiVo box.
* Made significant progress towards the commercial deployment of the
TiVo service on Comcast, which was demonstrated at this year's
Consumer Electronics Show to rave reviews. The TiVo service on
Comcast is expected to be available in the near-future in its
initial commercial market.
* Established an international distribution deal with Cablevision
Mexico, Mexico City's largest cable operator.
* Announced joint alliances with Music Choice and Rhapsody, which will
provide TiVo subscribers access to the leading digital music
services and a library of millions of songs and videos on their
televisions sets, turning the TiVo service into an on-demand music
service.
* Signed co-marketing deal with Earthlink that will distribute TiVo as
part of a package with Earthlink's broadband Internet product. The
Earthlink deal is TiVo's second distribution agreement with a major
DSL provider.
* Announced Starcom as the first media agency to purchase a
subscription to the TiVo Stop//Watch(TM) ratings service, a new
offering from TiVo which provides the industry's first comprehensive
second-by-second program and commercial ratings research service
designed to better understand time-shifted viewing.
* Made significant progress in the advertising business including the
launch of Program Placement. Advertising revenues increased
relative to the year ago fourth quarter and contributed to an
increase in ARPU on a year-over-year basis.

In the fourth quarter, TiVo-Owned subscription gross additions were 163,000, increasing overall TiVo-Owned subscriptions to 1.7 million. As expected, TiVo reported a net decline to 2.7 million DIRECTV TiVo subscriptions during the period as DIRECTV deployed fewer TiVo boxes and as there was continued churn of existing DIRECTV TiVo subscriptions. Cumulative total subscriptions as of January 31, 2007 were up slightly from last quarter to 4.4 million.

Mr. Rogers continued, "In addition to the many important partnerships and differentiated features we put in place over the course of the past year, we devoted significant attention in Fiscal 2007 toward testing several different approaches designed to measure how we will market and price the TiVo service. Our objective has been to increase not only the size of our subscription base, but also the value of each new subscription brought on. In addition, we've increased our efficiency with the expansion of sales coming from the online channel. Also, we increased the number of subscriptions pre-paying for a three-year commitment, and in so doing, have taken in upfront cash at levels equivalent to what our lifetime subscription program had contributed.

"During the fourth quarter we introduced at retail stores the concept of a free TiVo unit after mail-in rebate in connection with an increase in the price of the TiVo service, which we had successfully introduced online. These pricing and advertising efforts were centered around reducing inventory of the single-tuner product, of which we will not put much focus on in the future. We learned the concept of a free after mail-in rebate offer in retail is not as compelling as a free online offer and there are clear limits to using subsidies to grow volumes in retail. Given these results, and our great success in differentiating the TiVo service over the last year, particularly with the introduction of a premium content offering, we believe the time is right to shift emphasis away from such extensive hardware subsidies and instead move toward greater advertising and brand marketing, which is the most effective way to both grow subscriptions and enhance our financial position.

"Going forward, our goal will be to grow subscription levels on a more efficient basis. We recently reduced the hardware box subsidy and plan to continue to reduce those subsidies over the course of the year. We are also focused on building a broader brand value proposition through advertising the unique and distinctive elements of the TiVo service. We've engaged The Kaplan Thaler Group, an advertising firm which has had great success enhancing the value of other major brands. This approach is expected to enable us to develop an operating budget that will get us significantly closer to Adjusted EBITDA break-even for Fiscal Year 2008 at gross subscription addition levels similar to those achieved in Fiscal Year 2007.

"As TiVo enters Fiscal 2008, we believe there are five engines that will drive the Company's momentum in the coming year that didn't exist last year.

* First, delivering broadband content directly to the television
becomes a reality this year through our deal with Amazon, as well as
through our other broadband content features such as TiVoCast, Home
Movies via OneTrueMedia, which provides friends and family a private
channel to view personal content through their TiVo service, and the
TiVo Desktop autotranscode functionality, which gets internet video
off of the Web and displays it on the TV set.
* Second, our mass distribution strategy becomes a reality as the TiVo
service on Comcast product is expected to launch in its initial
market in the near-future and Cox is targeted for initial market
availability later this year.
* Third, we came out of the holiday season with the full attention of
our retail partners focused on the important role that TiVo can play
in their goal to offer bundles of High Definition television
products and services to consumers. We will be highly focused this
year on launching a lower-priced, mass appeal High Definition
product.
* Fourth, for the first time, TiVo plans to advertise throughout the
year with a far more extensive effort to educate the market on
TiVo's superior brand and the service's highly differentiated
features.
* Fifth, we believe our financial model will move us significantly
closer to Adjusted EBITDA break-even for Fiscal Year 2008 and
substantially improve the perception of the Company's long-term
financial prospects.

Along with the growing momentum in our advertising sales business and the opportunities internationally, we believe these five engines will demonstrate that TiVo has the tools in place necessary to grow TiVo's subscription base and solidify our critical role within the media landscape in Fiscal Year 2008 and beyond."

Management Provides Financial Guidance

Steve Sordello, CFO of TiVo, said, "It is TiVo's goal to continue to invest for long-term growth, while improving our bottom-line performance. To that end, we plan to continue to invest aggressively in our product while transitioning from hardware subsidies to a more advertising driven approach toward subscription acquisition. We expect this will lead us to get significantly closer to Adjusted EBITDA breakeven for the full-year Fiscal 2008. This goal assumes TiVo-Owned gross adds roughly equivalent to last year and accounts for current expectations related to litigation costs and currently expected R&D levels."

For the first quarter of Fiscal 2008, TiVo anticipates service and technology revenues in the range of $57 million to $58 million, a net loss of $4 million to net income breakeven, and an Adjusted EBITDA profit of $1 to $5 million.

This financial guidance is based on information available to management as of March 7, 2007. TiVo expressly disclaims any duty to update this guidance.

Management's guidance includes Adjusted EBITDA, a non-GAAP financial measure as defined in Regulation G. TiVo has provided a reconciliation of EBITDA and Adjusted EBITDA to net loss in the attached schedules solely for the purpose of complying with Regulation G and not as an indication that EBITDA or Adjusted EBITDA is a substitute measure for net loss.

Conference Call and Webcast

TiVo will host a conference call and Webcast to discuss the fourth quarter and Fiscal Year 2007 financial and operating results and guidance outlook at 2:00 pm PT (5:00 pm ET), today, March 7, 2007. To listen to the discussion, please visit www.tivo.com/ir and click on the link provided for the Webcast or dial (877) 502-9272 no password required. The Webcast will be archived and available through March 13, 2007 at www.tivo.com/ir or by calling (719) 457-0820 and entering the conference ID number 7498981.

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 and other distributors, 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 and TiVo KidZone, have elevated its popularity among consumers and have 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) transfers 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.

TiVo, 'TiVo, TV your way.' Season Pass, WishList, TiVoToGo, and the TiVo Logo are trademarks or registered trademarks of TiVo Inc.'s subsidiaries worldwide. (C) 2007 TiVo Inc. All rights reserved.

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 business development strategies, future financial results, current and future partnerships, the expected future deployment and availability of the TiVo service, future TiVo service features and advertising technologies, future subscription growth, and other factors that may affect future earnings or financial 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 development, competitive service offerings and lack of market acceptance, as well as the other potential factors described under "Risk Factors" 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, 2006 and the Quarterly Report on Form 10-Q for the quarter ended April 30, 2006, July 31, 2006 and October 31, 2006 and Current Reports on Form 8-K. We caution 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.

TIVO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(unaudited)

January 31, January 31,
2007 2006
Adjusted
ASSETS

CURRENT ASSETS
Cash and cash equivalents, and
short-term investments $128,765 $104,213
Accounts receivable 20,641 20,111
Inventories 29,980 10,939
Prepaid expenses and other, current 3,873 8,744
Total current assets 183,259 144,007

LONG-TERM ASSETS
Property and equipment, net 11,706 9,448
Purchased technology, capitalized
software, and intangible assets,
net 16,769 5,206
Prepaid expenses and other, long-term 1,019 347
Total long-term assets 29,494 15,001
Total assets $212,753 $159,008

LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)

LIABILITIES
CURRENT LIABILITIES
Accounts payable $37,127 $24,050
Accrued liabilities 36,543 37,449
Deferred revenue, current 64,872 57,902
Total current liabilities 138,542 119,401

LONG-TERM LIABILITIES
Deferred revenue, long-term 54,851 67,575
Deferred rent and other 1,562 1,404
Total long-term liabilities 56,413 68,979
Total liabilities 194,955 188,380

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, par value $0.001:
Authorized shares are 10,000,000
Issued and outstanding shares
- none -- --
Common stock, par value $0.001:
Authorized shares are
150,000,000
Issued and outstanding shares
are 97,231,483 and 85,376,191,
respectively 97 85
Additional paid-in capital 759,314 667,055
Deferred compensation -- (2,421)
Accumulated deficit (741,043) (694,091)
Less: Treasury stock, at cost -
80,503 shares (570) --
Total stockholders' equity
(deficit) 17,798 (29,372)
Total liabilities and
stockholders' equity
(deficit) $212,753 $159,008

TIVO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)

Three Months Ended Twelve Months Ended
January 31, January 31,
2007 2006 2007 2006
Adjusted Adjusted
Service revenues $53,543 $46,305 $198,924 $167,194
Technology revenues 3,837 663 19,061 3,665
Service and Technology revenues 57,380 46,968 217,985 170,859

Hardware revenues 35,074 32,266 88,740 72,093
Rebates, revenue share, and other
payments to channel (14,835) (19,167) (47,767) (47,027)
Net revenues 77,619 60,067 258,958 195,925

Cost of service revenues (1) 12,445 10,250 43,328 34,179
Cost of technology revenues (1) 3,476 (121) 16,849 782
Cost of hardware revenues 43,534 38,811 112,212 86,817
Gross margin 18,164 11,127 86,569 74,147

Research and development (1) 12,755 10,693 50,728 41,087
Sales and marketing (1) 16,666 10,637 42,522 35,047
General and administrative (1) 8,852 11,769 44,813 38,018
Loss from operations (20,109) (21,972) (51,494) (40,005)

Interest and other income
(expense), net 1,418 899 4,594 3,070
Provision for taxes (17) (13) (52) (64)
Net loss attributable to common
stockholders $(18,708) $(21,086) $(46,952) $(36,999)

Net loss per common share - basic
and diluted $(0.19) $(0.25) $(0.52) $(0.44)
Weighted average common shares
used to calculate basic and
diluted net loss per share 96,415 84,643 89,864 83,683

(1) Includes stock-based compensation expense (benefit) as follows (FY
2007 increases are due primarily to the adoption of FAS 123 (R))

Cost of service revenues $117 $-- $470 $--
Cost of technology revenues 338 -- 1,020 --
Research and development 1,419 46 5,596 (85)
Sales and marketing 385 75 1,649 55
General and administrative 1,720 216 5,977 415

TIVO INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)

Twelve Months Ended January 31,
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES Adjusted
Net loss $(46,952) $(36,999)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Depreciation and amortization of
property and equipment and
intangibles 7,759 6,345
Loss on disposal of fixed assets -- 2
Recognition of stock-based
compensation expense 14,712 385
Changes in assets and liabilities:
Accounts receivable, net (530) 5,768
Inventories (19,041) 1,165
Prepaid expenses and other 4,199 (3,377)
Accounts payable 11,963 5,314
Accrued liabilities (662) 4,276
Deferred revenue (5,754) 20,329
Deferred rent and other long-
term liabilities 158 217
Net cash provided by (used in)
operating activities $(34,148) $3,425
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of short-term investments (28,621) (15,502)
Sales of short-term investments 7,850 15,687
Acquisition of property and
equipment (7,341) (7,075)
Acquisition of capitalized software
and intangibles (13,125) (3,915)
Net cash used in investing
activities $(41,237) $(10,805)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowing under bank line of credit -- 3,500
Payments to bank line of credit -- (8,000)
Proceeds from issuance of common
stock 64,539 --
Proceeds from issuance of common
stock related to exercise of
warrants 3,330 --
Proceeds from issuance of common
stock related to exercise of
common stock options 9,075 7,011
Proceeds from issuance of common
stock related to employee stock
purchase plan 2,792 2,922
Treasury Stock - repurchase of
restricted stock for tax
withholding (570) --
Net cash provided by financing
activities $79,166 $5,433
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $3,781 $(1,947)

TIVO INC.
OTHER DATA

Three Months Ended Twelve Months Ended
January 31, January 31,
2007 2006 2007 2006

Net loss $(18,708) $(21,086) $(46,952) $(36,999)
Add back:
Depreciation & amortization 1,944 1,757 7,759 6,345
Interest income & expense (1,423) (898) (4,716) (3,070)
Provision for income tax 17 13 52 64
EBITDA (18,170) (20,214) (43,857) (33,660)
Stock-based compensation 3,979 337 14,712 385
Adjusted EBITDA $(14,191) $(19,877) $(29,145) $(33,275)

EBITDA and Adjusted EBITDA Results. TiVo's "EBITDA" means income before interest expense, provision for income taxes and depreciation and amortization. TiVo's "Adjusted EBITDA" is EBITDA less expense for stock-based compensation. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles, which we refer to as GAAP. TiVo's EBITDA and Adjusted EBITDA results are calculated by adjusting GAAP net income to exclude the effects of items that management believes are not directly related to the underlying performance of TiVo's core business operations. A table reconciling TiVo's EBITDA and Adjusted EBITDA to GAAP net income is included with the condensed consolidated financial statements attached to this release. We have presented EBITDA and Adjusted EBITDA solely as supplemental disclosure because we believe they allow for a more complete analysis of our results of operations and we believe that EBITDA and Adjusted EBITDA are useful to investors because EBITDA and Adjusted EBITDA are commonly used to analyze companies on the basis of operating performance, leverage and liquidity. In addition, because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation enhances the ability of management and investors to compare our core operating results over multiple periods. We do not use stock-based compensation expense in our internal measures. A limitation associated with these non-GAAP measures is that they do not include any stock-based compensation expense related to hiring, retaining, and incentivizing the Company's workforce. EBITDA and Adjusted EBITDA are not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of operating performance as determined in accordance with GAAP.

TIVO INC.
OTHER DATA

Subscriptions
Three Months Twelve Months
Ended Ended
January 31, January 31,
(Subscriptions in thousands) 2007 2006 2007 2006

TiVo-Owned Subscription Gross
Additions 163 221 429 494

Subscription Net Additions:
TiVo-Owned 101 183 235 350
DIRECTV (91) 173 (155) 1,013

Total Subscription Net Additions 10 356 80 1,363

Cumulative Subscriptions:
TiVo-Owned 1,726 1,491 1,726 1,491
DIRECTV 2,718 2,873 2,718 2,873

Total Cumulative Subscriptions 4,444 4,364 4,444 4,364
% of TiVo-Owned Cumulative
Subscriptions paying recurring fees 58% 51% 58% 51%

Included in the 4,444,000 subscriptions are approximately 165,000
lifetime subscriptions that have reached the end of the 48-month period
TiVo uses to recognize lifetime subscription revenue. These lifetime
subscriptions no longer generate subscription revenue.

TIVO INC.
OTHER DATA - KEY BUSINESS METRICS

Three Months Twelve Months
Ended Ended
January 31, January 31,
TiVo-Owned Churn Rate 2007 2006 2007 2006
(In thousands) (In thousands)
Average TiVo-Owned subscriptions 1,672 1,388 1,584 1,269
TiVo-Owned subscription cancellations (62) (38) (194) (144)
Number of Months 3 3 12 12
TiVo-Owned Churn Rate per month -1.2% -0.9% -1.0% -0.9%

TiVo-Owned Churn Rate per Month. Management reviews this metric, and believes it may be useful to investors, in order to evaluate our ability to retain existing TiVo-Owned subscriptions (including both monthly and product lifetime subscriptions) by providing services that are competitive in the market. Management believes factors such as service enhancements, service commitments, higher customer satisfaction, and improved customer support may improve this metric. Conversely, management believes factors such as increased competition, lack of competitive service features, and increased price sensitivity may cause our TiVo-Owned Churn Rate per month to increase.

We define the TiVo-Owned Churn Rate per month as the total TiVo-Owned subscription cancellations in the period divided by the Average TiVo-Owned subscriptions for the period (including both monthly and product lifetime subscriptions), which then is divided by the number of months in the period. We calculate Average TiVo-Owned subscriptions for the period by adding the average TiVo-Owned subscriptions for each month and dividing by the number of months in the period. We calculate the average TiVo-Owned subscriptions for each month by adding the beginning and ending subscriptions for the month and dividing by two. We are not aware of any uniform standards for calculating churn and caution that our presentation may not be consistent with that of other companies.

Three Months Twelve Months
Ended January 31, Ended January 31,
2007 2006 2007 2006
(In thousands, (In thousands,
Subscription Acquisition Costs except SAC) except SAC)
Adjusted Adjusted

Sales and marketing expenses $16,666 $10,637 $42,522 $35,047
Rebates, revenue share, and other
payments to channel 14,835 19,167 47,767 47,027
Hardware revenues (35,074) (32,266) (88,740) (72,093)
Cost of hardware revenues 43,534 38,811 112,212 86,817
Total Acquisition Costs 39,961 36,349 113,761 96,798
TiVo-Owned Subscription Gross
Additions 163 221 429 494
Subscription Acquisition Costs
(SAC) $245 $164 $265 $196

Subscription Acquisition Cost or SAC. Management reviews this metric, and believes it may be useful to investors, in order to evaluate trends in the efficiency of our marketing programs and subscription acquisition strategies. We define SAC as our total acquisition costs for a given period divided by TiVo-Owned subscription gross additions for the same period. We define total acquisition costs as the sum of sales and marketing expenses, rebates, revenue share, and other payments to channel, minus hardware gross margin (defined as hardware revenues less cost of hardware revenues). We do not include DIRECTV subscription gross additions in our calculation of SAC because we incur limited or no acquisition costs for new DIRECTV subscriptions. We are not aware of any uniform standards for calculating total acquisition costs or SAC and caution that our presentation may not be consistent with that of other companies.

Three Months Ended Twelve Months Ended
TiVo-Owned Average Revenue per January 31, January 31,
Subscription 2007 2006 2007 2006
(In thousands, except ARPU)

Service and Technology revenues $57,380 $46,968 $217,985 $170,859
Less: Technology revenues (3,837) (663) (19,061) (3,665)
Total Service revenues 53,543 46,305 198,924 167,194
Less: DIRECTV-related service
revenues (8,456) (9,602) (32,066) (32,788)
TiVo-Owned-related service revenues 45,087 36,703 166,858 134,406
Average TiVo-Owned revenues per
month 15,029 12,234 13,905 11,201
Average TiVo-Owned per month
subscriptions 1,672 1,388 1,584 1,269
TiVo-Owned ARPU per month $8.99 $8.82 $8.78 $8.83

Three Months Ended Twelve Months Ended
January 31, January 31,
DIRECTV Average Revenue per 2007 2006 2007 2006
Subscription (In thousands, except ARPU)

Service and Technology revenues $57,380 $46,968 $217,985 $170,859
Less: Technology revenues (3,837) (663) (19,061) (3,665)
Total Service revenues 53,543 46,305 198,924 167,194
Less: TiVo-Owned-related service
revenues (45,087) (36,703) (166,858) (134,406)
DIRECTV-related service revenues 8,456 9,602 32,066 32,788
Average DIRECTV revenues per month 2,819 3,201 2,672 2,732
Average DIRECTV per month
subscriptions 2,767 2,818 2,606 2,376
DIRECTV ARPU per month $1.02 $1.14 $1.03 $1.15

Average Revenue Per Subscription or ARPU. Management reviews this metric, and believes it may be useful to investors, in order to evaluate the potential of our subscription base to generate revenues from a variety of sources, including subscription fees, advertising, and audience measurement research. ARPU does not include rebates, revenue share and other payments to channel that reduce our GAAP revenues. Additionally, under the accounting policy for our bundled sales program, revenues associated with these bundled sales transactions, which were previously recognized as hardware revenues, are now being recognized in service revenues. As a result, you should not use ARPU as a substitute for measures of financial performance calculated in accordance with GAAP. Management believes it is useful to consider this metric excluding the costs associated with rebates, revenue share and other payments to channel because of the discretionary nature of these expenses and because management believes these expenses are more appropriately monitored as part of SAC. We are not aware of any uniform standards for calculating ARPU and caution that our presentation may not be consistent with that of other companies.

We calculate ARPU per month for TiVo-Owned subscriptions by subtracting DIRECTV-related service revenues (which includes DIRECTV subscription service revenues and DIRECTV-related advertising revenues) from our total reported service revenues and dividing the result by the number of months in the period. We then divide by Average TiVo-Owned subscriptions for the period, calculated as described above for churn rate. The above table shows this calculation and reconciles ARPU for TiVo-Owned subscriptions to our reported service and technology revenues.

We calculate ARPU per month for DIRECTV subscriptions by first subtracting TiVo-Owned-related service revenues (which includes TiVo-Owned subscription service revenues and TiVo-Owned related advertising revenues) from our total reported service revenues. Then we divide average revenues per month for DIRECTV-related service revenues by average subscriptions for the period. The above table shows this calculation and reconciles ARPU for DIRECTV subscriptions to service and technology revenues.

For Fiscal 2007, pursuant to the most recent amendment of our agreement with DIRECTV, TiVo now defers a portion of the DIRECTV subscription fees equal to the fair value of the undelivered development services. Otherwise, the recurring subscriptions fees in this agreement are similar to the fees for the DIRECTV receivers with TiVo service activated since 2002.

FCMN Contact: dnueman@tivo.com

Source: TiVo Inc.

CONTACT: Derrick Nueman, Investor Relations of TiVo Inc.,
+1-408-519-9677, or ir@tivo.com; or Jeffrey Weir, Media Relations of Sloane &
Company, +1-212-446-1878, or jweir@sloanepr.com, for TiVo Inc.

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

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