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Litigation Profitable to TiVo

25 Nov, 2008 By: Erik Gruenwedel

Civil trial damages awarded in the amount of $105 million helped digital video recording pioneer TiVo post third quarter (ended Oct. 31) net income of $100 million, compared to a loss of $8.3 million during the previous year period.

Without the copyright infringement damages from Dish Network Corp. (formerly EchoStar Communications), TiVo would have reported a net loss of $900,000 on net revenues of $64.4 million, compared to revenues of $75.5 million last year.

Alviso, Calif.-based TiVo said it expects to receive additional compensation following a court hearing for alleged copyright infringement by Dish since the initial period of infringement, which ended Sept. 8, 2006.

“We remain confident that we will prevail in showing that EchoStar’s workaround [for the digital transition next February] does not avoid infringement,” said Tom Rogers, president and CEO of TiVo, in a statement.

During the quarter, TiVo initiated content streaming service to Netflix’s broadband subscribers, in addition to rolling out branded DVR service with cable operator Comcast and satellite operator DirecTV.

Rogers said TiVo was not immune to the uncertain economic climate, including what he considered would be adversely affected consumer electronics sales during the holiday season.

The service ended the quarter with a gross of 44,000 new subscribers, compared to 69,000 the previous year. Churn, the percentage of subscribers not renewing their membership, was 1.4% compared to 1.5% last year.

Cumulative TiVo subscribers as of Oct. 31 totaled 3.5 million.


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