Update 11/06 @ 8:30PM EST: I’ve published a related post here.
I just received an email from Dave Zatz letting me know that TiVo has decided to raise their monthly service rates and screw around with the multi-service discount. Here’s how the new plan will work:
- If you choose the monthly TiVo Package Payment Plan, your options are as follows: (a) Commit to the TiVo Package for three (3) years at $12.95 per month; (b) Commit to the TiVo Package for two (2) years at $14.95 per month; or (c) Commit to the TiVo Package for one (1) year at $19.95 per month. Promotional Pricing may be available from time-to-time.
- Alternatively, you may prepay for your TiVo Package Payment Plan for either three (3) years at $349, two (2) years at $299, or one (1) year at $199. Promotional Pricing may be available from time-to-time.
Here’s how the new multi-service discount will work:
- The MULTI-SERVICE DISCOUNT reduces the Monthly TiVo service or TiVo Plus service subscription fee by $6 per month to $6.95 per month for (3) years; $8.95 per month for (2) years; or $13.95 per month for (1) year
What is TiVo thinking? Even though I’m truly one of the biggest TiVo fanboys, I don’t think I will be able to recommend TiVo to any of my friends given the new pricing structure. In fact, to be perfectly honest, I’m not sure what I would do if my TiVo were to die tomorrow. $19.95/month is a lot of cash especially when I already pay $80 for a cable bill. I really hope TiVo takes a closer look at this new pricing structure and realizes that it’s not going to get them new customers and that old customers may decide against buy another TiVo or recommending the service to their friends and family.
Right now, I am really discouraged and irritated by this decision. I understand that the company is trying to turn a profit but raising rates is definitely not a good thing. What does everybody else think of this? Is this going to make you think twice about recommending a TiVo or purchasing your first TiVo DVR?
Hat Tip: Dave Zatz (Digg here)
As I said over at Zatz, I was planning on buying a Series 3 after Chanukah, but I’m now strongly considering getting a Cox DVR.
I’d been wondering why they’ve got such great rebates right now, basically making dual-tuner and DVD burning Series 2s free. Perhaps they’re trying to make sure that there’s no secondary market for Tivos, so fewer current customers will drop.
Actually the pre-paid bundle pricing has all come down quite a bit. It used to be $224, $369, or $469. Now it is $199, $299, or $349. The monthly price for 2-year plans dropped from $18.95 to $14.95.
TiVo said they were going to be moving to the bundle plans going forward, including trying to get retailers to sell bundles, so it is good to see the prices on those come down.
The service only prices were $155.40, $299, and $399. So the one year went up, 2 year stayed the same, and the three year came down.
I look at it as encouraging longer commitments to reduce churn. I’ve always been in favor of that. When lifetime was available I always told people to buy lifetime. Then, when it went away, I recommended the 3-year pre-paid plans as the best value.
So this doesn’t really change things for. I’d still buy them, and recommend them. I’ve never thought the 1-year deals were a good deal. MSD converted to a discount. Seems straightforward.
Since the prices on the S2s have come down so low, and there have been many specials where you basically get a free box, the secondary market hasn’t been strong – unless you had a lifetime box.
I feel the same way. I love my Tivo and I was planning on getting a Series3 once MRV was available on it but this pricing structure combined with the high price for the Series3 is making me think twice about that. $800 plus $20/month is really more than I want to pay for anything connected to my TV.
I’m not going to get a DVR from my cable company to replace my Series2 anytime soon but I might give a Media Center PC a more serious look once Vista is released.
Hopefully something will change, even if its just a price drop on the Series3 or some great addition to the service because right now I just couldn’t see myself justifying the cost.
It wouldn’t be so bad if they threw in the hardware for free. That’s how I got my Series2: They were having a promotion, and I paid for one year of service and got the box at no extra charge. Seems like they should do that all the time, like the cable companies do. Then the cost increase wouldn’t sting as much…
Megazone…where are you??? I can’t wait to hear your response to this one…should be some more great unpaid TiVo propaganda! Like I said before, I own 2 Series 2 boxes and I love the product but hate the company!
Most of my friends and family already think I’m crazy for paying the current fees, how could I ever try to justify these increases? Unless this is a move to better position the company for acquisition, this move, at this time, just makes no sense.
My complaint is still the same…instead of focusing on building more stable and affordable products, TiVo is now trying to milk the service fees and drive away even more potential new subscribers…disgusting!
I already warned the TiVo lemmings once but now the cliff is getting even closer…
Are you actually doing the math before you post?
I actually cancelled an order I made last night (on the old pricing structure) only to re-order today on the new prices.
By giving up an 80-hour, dual-recording box for $30 and instead paying $70 for it today, I get 3 year’s of service at $12.95 instead of $16.95.
You’re welcome to double-check my calculations, but I would say that saves me about $105.
They must be crazy…why would anybody get a new TiVo box instead of just a DVR from their cable company? I love my TiVo, but I could never justify getting a new one if this one breaks. I also have a Cablevision DVR and while my TiVo is better, it isn’t that much better. Especially with how slow all operations are now with TiVo, I wouldn’t pay anything for their service.
When I got my TiVo, I got the lifetime subscription plan and that ended up being a pretty good deal. I am really glad that I went with that now.
They really need to rethink this…if anything, they need to make themselves cheaper than other DVRs. There is currently very little reason to get a TiVo now.
Isn’t the Multi-Service Discount designed to keep existing customers happy, and encourage us to remain loyal? Now I’m going to have to give a bit more thought to whether or not I’m going to pick up a second TiVo box for my house. Before this news, the decision had already been made. Now, there’s a good chance that TiVo has lost a sale.
I’ve been done with TiVo for a while.
They need to partner with some cable companies, or just close up shop.
John – I replied, but WordPress is blocking it because it thinks it is spam. Probably because I used prices or something. Alex will have to approve it.
For a lengthier reply, see my post in TivoLovers. Short version – out of 30 combinations, 21 *DROPPED* in price, up to $154. One remained the same. Five went up in price a little bit, $18 or less. And three went up noticeably – two $40, one $54. All but one increase are 1-year deals, the other is $18 over two years.
So yeah, I think this is a good change overall – mostly *significant* price REDUCTIONS, a couple of noticeable increases, and some negligible increases.
Just do the math.
MegaZone,
I don’t have anything in my moderation queue. Try resubmitting your comment or send it to me via my feedback form.
True but you had to sign up for a three year commitment. With the way technology works, who wants to commit to anything for three years! Also, couldn’t you have gotten $12.95/month if you had bought your TiVo from any of the brick and mortar stores such as BestBuy? The thing that irritates me about these new plans is that you need to sign up for 3 years in order to get the lower rate. Like I said before, who’s going to want to do that. What if the TiVo dies within three years?
I’m glad I just switched to DirecTV and picked up an HR20. It was a hell of a lot cheaper than a Series 3, and is only an extra $5 a month. I do miss the Tivo interface, but not that much.
Exactly Alex! Who wants to commit to any technology for 3 years?!?!? Maybe the TiVo diehards like MZ would love to get locked in for years but let’s please put these significant price “reductions” in perspective! How anyone could view this change as positive for TiVo subscribers just blows my mind!
Damn, now I need to come up with a new idea for a x-mas present. My wife thought it would be easy this year. The interface is not THAT good. Does anyone see any similarities between this and what AOL, MSN and Earthlink did with dial-up a few years ago?