A new report from The Diffusion Group (TDG) suggests that as DirecTV phases out shipments of TiVo DVRs -- a relationship that accounted for 70 percent of TiVo units sold in 2004 but will account for less than 5 percent of unit shipments by 2007 -- TiVo will be forced to come to terms with an increasingly competitive market flooded by free DVRs from video service providers. TDG argues that though TiVo will look to new cable and satellite relationships to fill the gap, these dealings will generate far too little revenue to sustain the company for the long-term. "TiVo's new president and CEO, Tom Rogers, will face many challenges as he leads TiVo into its post-DirecTV chapter," said Scott Kipp, author of the report and a contributing analyst. "Service provider relationships will no doubt be the company's initial panacea, but while such relationships may be cause for short-term optimism, their ability to contribute significantly to the Company's bottom line is limited. TiVo's long-term survival requires a major transformation in its branding and positioning strategies. It will simply not survive as a DVR solution provider. Instead, it must become a true 21st century media company, combining consumer electronics, digital audio, web-based video, and T-commerce strategies, each with a significant Internet component."
The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the