TiVo cuts set-top prices to lure more subscribers
- Aug 9, 2004 12:01 AM (Reuters)
NEW YORK, Aug 9 (Reuters) - TiVo Inc.(NASDAQ:TIVO) on Monday cut
prices for its digital television recorder to as low as $100, under
its $50 million plan to rapidly increase subscribers to its service.
The San Jose, California-based company, whose fee-based digital video
recorder service lets users pause live TV and customize viewing
choices, said it would offer a $100 mail-in rebate on its 40-hour
set-top box, which sells for $200.
The price drop comes amid growing investor concern about TiVo's growth
potential, especially as close partner DirecTV(NYSE:DTV) prepares to
offer other digital video recorder (DVR) options to its satellite TV
subscribers next year.
TiVo's stock fell to a 16-month low on Friday, closing at $4.78 on
Nasdaq.
The lower set-top box prices, effective Aug. 11, also apply to other
TiVo models, including those sold by electronics makers Toshiba
Corp.(TOKYO:6502) and Humax Co. Ltd.(KQ:028080)
In addition, TiVo said it updated the design of its Series2 models,
developed to reduce manufacturing costs, and will sell the boxes in
more national retail chains, such as Costco Wholesale
Corp.(NASDAQ:COST) and CompUSA stores.
- http://finance.lycos.com/home/news/story.asp?story=42977333