TIVO
...it on top of, the DVR.” In order for this strategy to be successful, TiVo would have to reengineer their non modular product into a piece of modular equipment which can easily adapt to different hardware and software environments. As a result, TiVo will be able to greatly reduce the costs that are associated with extending its technology to a new OEM or CE device. The patents that TiVo has filed will also help them to develop a dominant standard or format in the DVR industry. TiVo has three major patents that they received in 2001. One of the patents is for personal video recording software and hardware design and the other two patents are for core DVR functions and for home networking capabilities. In addition, several aspects of the TiVo system have been patented. These patents protect such functions as the scheduling feature and disk space optimization. As a result of these patents, TiVo can protect their product from duplication and imitation while they set the dominant standard or format for DVRs. These patents have already proved to be useful. “In 2003, TiVo sued a major competitor, EchoStar, for the first time for violating one of its approximately 50 patents.” TiVo has many crucial decisions to make in order to end up a major player in the entertainment value chain. TiVo’s CEO, Mike Ramsay, stated that in the long run they want TiVo to be the portal to entertainment services in the home. “We think of ourselves as the Google of TV. As more and more people get premium TV programming, we can help people to manage their TV better – and with HMO (Home Media Option), we can take it beyond that to managing all the digital content in the home. With HMO, we’re targeting TiVo users who have home networks and broadband.” One step that TiVo has taken to realize this goal is by filing patents to protect their product while they compete to become an industry leader. Also having a product that is highly differentiated will help the pursuit of this long term goal. By focusing resources on developing new DVR and home entertainment capabilities, TiVo will help secure their future as a major player in the entertainment value chain. The types of projects that TiVo should focus on include: “software portability, improving Showcase authoring capabilities to make Showcases more dynamic, developing the ability to work with EPG supplier, and continuing to upgrade the user interface.” TiVo will be successful if they are able to make the platform more advertiser friendly and if they are able to continue to lower their reta...