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Product Strategy in The Digital Economy TiVo Project Cristian Lopez Saubidet - James Phelan - Pablo Sanchez.

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Presentation on theme: "Product Strategy in The Digital Economy TiVo Project Cristian Lopez Saubidet - James Phelan - Pablo Sanchez."— Presentation transcript:

1 Product Strategy in The Digital Economy TiVo Project Cristian Lopez Saubidet - James Phelan - Pablo Sanchez

2 Company Vision: To be the leader in Personal TV Services. Hardware Partners: Philips, Thomson and Sony Content Partners: AOL and DIRECTV History: z1997: TiVo founded by Jim Barton & Mike Ramsey zJanuary, 1999: TiVo unveiled for the first time to the public at CES

3 TiVo System

4 zRecording yAutomatic Recording ySearch Through Up to 2 Weeks of Programming yRecord by “Wish List” (Favorite Actors, Sports Teams, or Key Words) yRate Programming

5 TiVo System zLive TV yPause Live TV yReplay Live TV yParental Controls zInter-Active TV yTiVo Suggestions yTiVolution Magazine yNetwork Showcase yIpreview

6 Critical Issues Grid The Company Will TiVo succeed? Political Will TiVo have patent protection? How easily will consumers learn to use TiVo? Behavioral How much are consumers willing to pay for TiVo system? How much are they willing to pay for the service? Economic Will TiVo become fad? Will consumers embrace TiVo? Social Will TiVo develop new uses? Technology

7 Critical Issues Grid Business Ecosystem Will TiVo succeed? Political Regulation of content: Copyrights, Ads How intense will competition be? Will competitors succeed? Are there many substitutes for TiVo? Behavioral How much of a threat is TiVo to advertising? How big will the total market be? Economic Will new segments use TiVo: Education, Commerce? Social Will there be an industry standard? Technology

8 Critical Issues Grid Infrastructure Will TiVo succeed? Political Regulation of Infrastructure: Cable, Satellite, Phone-lines Will content availability increase? Behavioral Are there many complements for TiVo? Economic Are there network effects? Social Will infrastructure be able to support the technology? Technology

9 TiVo’s Network

10 Network Scenarios 3 States: Dominate, Survive, & Die Scenario 1 (Base) yDominate = 17.2 ySurvive = 38.4 yDie = 44.5 Scenario 3 (Worst) yDominate = 0 ySurvive = 25.0 yDie = 75.0 Scenario 2 (Best) yDominate = 75.0 ySurvive = 25.0 yDie = 5.0

11 Network Sensitivity

12 Conclusion TiVo needs to work to expand its potential market size zOpen up its architecture to a wider base y“TiVo enabled” DVDs, VCRs, and even TVs yCommoditize the product zPush to find new, unexpected markets for its product yEducation yBusiness

13 Conclusion TiVo should also work on building a stronger network effect for its products zComplimentary Products(i.e. swappable hard drives, TiVo Storage CDs) yNew Revenue Stream yPossibly New Business Models z“Sticky” Services yPut consumer knowledge on server rather than local

14 Questions???


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