MegaZone Breaks Down TiVo’s New Pricing Plan
One of the biggest TiVo evangelists (MegaZone) has broken down the new pricing plan that has so many people seem to be irritated with. In his post, MegaZone does a great job explaining what the differences are. Check it out if you’re at all confused with the new pricing structure.
After reviewing his post, I guess I realized that I shouldn’t have called my previous post “TiVo Raises Rates. What Are They Thinking?“. Instead I probably should have called it, “TiVo Raises Some Rates And Lowers Others…”. The bottom line is that TiVo has raised some rates while lowering others. MegaZone does a good job explaining this in his post.
The main reason why I am so irritated with this new pricing structure is simply because it requires you to commit to three years if you want to get the lower rates. Personally, I like purchasing my TiVo from a brick and mortar store and then paying the $12.95 per month for service. Under the new plan, I am required to commit to three years in order to get the same deal. If I only want to commit to one year, I am required to pay $19.95/month under the new plan :(. Let’s be realistic, who wants to commit to any technology for three years? I know I’m a little reluctant to do it.
I’m also kind of irritated with the new multi-service discount offering. I would guess that people who take advantage of the multi-service discount tend to be “advanced” TiVo users or the type of customer that you don’t want to alienate. What TiVo did to the mult-service discount is not good.
Does anybody else agree with my analysis or have I simply exaggerated the situation? I’d like to hear what other people have to say….
November 6th, 2006 at 9:27 pm |
Well, like I said, all but one two year plan also saw a drop in net cost. (And that one plan only went up $18 over two years.) So, basically, if you commit to two or three years, you save money - up to $154.
The increases are all (except that one) on 1-year plans. Out of the eight 1-year permutations I did, one remained the same, four went up just a little - $13.60 to $15, and three had significant increases. The two S2DT bundles, on the monthly plan, saw a $40 increase. And the retail non-540 units saw a net $54 increase on the 1-year monthly plan.
So, basically, avoid the 1-year monthly plans to avoid any significant increase. Pre-pay, or opt for 2- or 3-year plans and you’ll pay about the same, or less, net. Out of 30 total permutations that’s 21 decreases, 1 static, 5 small increases, and 3 large increases.
November 7th, 2006 at 9:45 am |
I’m with you Alex. I think TiVo is squeezing it’s most loyal customers with the new MSD rates. Also requiring people to commit to three years is kind of crazy — especially new customers, who may not know how superior the software is to the cable company DVR which requires no commitment.
As I commented on Megazone’s blog: TiVo isn’t marketing to those of us in the know. If these pricing plans need MZ’s mathematical analysis, they’ve already failed in the consumer market. Is the surly Best Buy teenager going to convey MZ’s results? I don’t think so.
November 10th, 2006 at 11:42 pm |
Not quite sure what they are thinking with this move. There is no way I would be signing up for this for 3 years that is way too long. I bet many people will share your frustrations.Thanks for sharing.
November 10th, 2006 at 11:49 pm |
Sports fan - so go for 2 years, you still save with the new rates. Or just go for 1 year and in most cases you will pay just a little more, up to $15.
Why do people keep saying “Oh no, I’m not going to commit for 3-years!” That’s a red herring, there is no reason you have to do that to save money.
November 27th, 2006 at 10:22 pm |
I have a TiVo from two years ago, bought with lifetime service. I think it’s great, and would have trouble watching TV without it now. Having said that, I wouldn’t buy one if I had to pay month-to-month.
November 27th, 2006 at 10:28 pm |
I’ve never liked monthly payments either. Even though it just goes to my credit card and I pay that online. I always went lifetime when it was available. But I understand them dropping it since it was too good a deal. Now I recommend the pre-paid plans. If I bought a new box today I’d go with 3-years pre-paid.
December 18th, 2006 at 5:15 pm |
I wonder if this is a way to lock in users of older TiVo units. Having had mine for over two years, a 3 year commitment - which is non-transferrable, last I loked - would mean I’d be betting on my current unit to live well past its design lifetime. Perhaps TiVo is worried that folks will move to newer platforms and their installed base will seriously erode due to the aging of the deployed equipment.
I’d only be interested in longer commitments if the registration were transferable to new equipment.
December 18th, 2006 at 6:00 pm |
1. If you have an existing box, there is nothing to commit to. Currently monthly subscribers will continue to pay their current monthly rate with no changes.
2. Service commitments are transferable to a new box, and have been. The drawback is generally that a rebate requires a *new* service activation, so you can get a new box and swap it, but you won’t get the rebate. Of course, you can pick up used box on eBay, etc. The hardware (but not labor) warranty is also extended for the life of the commitment.
With the current pricing, the incentive is exactly the opposite of what you suggest. Since a new box is free, you may as well toss the old box out ever 3 years and just get a new one. Odds are there will be some new hardware by the time the commitment is up.