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Is DISH Network Buying TiVo?

March 24, 2010

Things are getting interesting in the rumor department, as Barrons is reporting a rumor which has DISH Network looking to buy TIVO. (http://blogs.barrons.com/techtraderdaily/2010/03/24/tivo-rallies-on-dish-bid-rumor/)

Shares of TIVO shot up almost fifty cents when news of the rumor broke this morning.

If the rumor is true (and I hope it is) then I applaud the move. This is something that they should have done a long long time ago. This lawsuit has gone on too long and has hurt both companies over the long run.

However in thinking further about this, I think it would make a lot more sense if DISH Network didn’t buy TIVO but its sister company ECHOSTAR did. ECHSTAR is the maker of the receivers used by DISH Network and other services such as Canada’s Bell TV service.

Over the past few years ECHOSTAR has been trying to break into the world of cable television and has been making a push to see cable operators its newest box which is “Slingloaded” with a built in Slingbox.

If ECHOSTAR purchased TIVO it would allow them to finally get their foot in the door as many cable systems are now rolling out TIVO powered DVR’s to their customers.

The buy would also let ECHOSTAR improve their software on their DVR’s as I know there have been a few features they have wanted to add to their receivers but have not out of fear of stepping on TIVO’s patients.

In addition ECHOSTAR could profit off of DISH Network by coming to a licensing agreement with DISH over the TIVO patents. These fees would give ECHOSTAR a monthly cash flow based on DISH Networks loss to TIVO over the patent issues.

And I also feel this sale could be good for TIVO. The company has been struggling over the years trying to survive, by being purchased by ECHOSTAR will ensure the TIVO brand a long secure life.

I would find it funny if ECHOSTAR did purchase them and then would continue suing other companies for violations of TIVO’s patents and doing so by using the very same lawsuit that was brought against them as their evidence to move forward.

It’s a wacky world out there in the satellite industry, but one thing I learned over the years is to never say never. Anything is possible in the wonderful world of satellite.

We will be keeping an eye on this one for sure!

Posted by Scott Greczkowski on March 24, 2010 | Comments (22)

9/4/2011 1:55:09 AM EDT
In response to: Is DISH Network Buying TiVo?
jessjeanjane commented:

There are many good quality satellite tv nowadays...but we have to be wise in choosing the best and affordable satellite tv deals.


6/2/2011 1:46:43 PM EDT
In response to: Is DISH Network Buying TiVo?
Chris Gabis commented:

I agree. Dish Network itself would have no reason to purchase TiVo itself. There is almost nothing remotely 'hardware' about Dish Network itself. It is only due to the fact that it is essentially coupled with Echostar that makes it a whole unit. But since the split, they are still two separate entities which makes it fairly obvious that whomever began this rumor had no idea on what they were talking about.


4/17/2011 5:40:16 PM EDT
In response to: Is DISH Network Buying TiVo?
Robert commented:

Dish TV has a huge channel library. Offering over 300 TV channels, you are give multiple package choices in addition to numerous extras so you know that you will get the entertainment you want at a price you can afford. There currently are some excellent offers available for Satellite TV system from DirecTV and Dish Network. Go to http://www.dish-network-vs-direct-tv.com/ to learn more.


3/30/2010 9:30:47 AM EDT
In response to: Is DISH Network Buying TiVo?
Mainer_Ayah commented:

I have 2 words for all the Dish buying TiVo rumor mongers. POISON PILL.
Look it up.


3/29/2010 5:41:32 PM EDT
In response to: Is DISH Network Buying TiVo?
Mic commented:

I'm surprised TiVo hasn't gone bankrupt already.

$15/month or so just to use their DVR. They can keep it.


3/29/2010 5:41:20 PM EDT
In response to: Is DISH Network Buying TiVo?
Mic commented:

I'm surprised TiVo hasn't gone bankrupt already.

$15/month or so just to use their DVR. They can keep it.


3/29/2010 1:50:59 PM EDT
In response to: Is DISH Network Buying TiVo?
celticpride commented:

I dont know whats gonna happen,but this news makes me hold off on buying a tivo premiere for now,I would be angry if i bought a tivo to use with fios and then if dish were to buy tivo and say you can only use tivo with dish.I"m still angry with directv ,i spent nearly $3000.00 on 3 hdtivos and then they moved nearly all of their hd channels to mpeg 4 making my hdtivos a ''sometimes'' HD box.I wanted to switch to verizon ,but for now i'll let things play out before i invest money on a couple of tivo boxes.


3/29/2010 1:21:05 PM EDT
In response to: Is DISH Network Buying TiVo?
Malone commented:

Scott Greczkowski : Please respond to my
Google Tv Box Android(Gbox)( coop with Sony, Intel and Logitec) with Tivo inside message.
Owning Tivo would be a great way to make some inroads to the U.S.A. MSO's to get the GBox sold. The TIVO patents would give some pressure in doing deals with Verizon and others as well. It is a great tool to get the GBox sold.
Google has enough cash to do the deal.
It would also release Dish from the pressure.
Charlie Ergen should call Eric Schmidt and Vincent Dureau (head of tv technology) and
put an action plan together to take-over TIVO. Google must own the company Tivo to increase their Google TV Ads platform.


3/28/2010 11:53:45 PM EDT
In response to: Is DISH Network Buying TiVo?
nope commented:

that Directv Tivo isnt coming. Been years and years its not gonna happen.


3/28/2010 7:56:46 AM EDT
In response to: Is DISH Network Buying TiVo?
Malone commented:

The only way to do this if Google buys TIVO.
Dish and Google could make a good deal after the take-over. Google could use TIVO to get the Google TV box (GBox) in other MSO's as well.
Use the tivo-patents for pressure. The measurement part of Tivo already is part of google tv ads solution. Owning TIVO by Google makes it easier to promote or sell the Google TV box (Gbox)also combining it into one solution makes it more attractive. Google would have the patents, pressure and force to sell the Tivo box combining it with its Android solution. TIVO would be part of the Google tv box (Gbox) GREAT.


3/27/2010 10:27:33 PM EDT
In response to: Is DISH Network Buying TiVo?
FTAB4ME commented:

I hope that DirecTV buys Tivo and throws a wrench at Dish. After all Direct already owns Replay.


3/26/2010 12:34:09 PM EDT
In response to: Is DISH Network Buying TiVo?
Shane commented:

Losing customers? Last I saw they were growing faster than any of the cable companies and DirecTV. I think this could be a huge win IF they could find a way to wrap up the product innovation that both Sling and TiVO bring into one box.


3/26/2010 9:23:18 AM EDT
In response to: Is DISH Network Buying TiVo?
Scot commented:

Well I have to agree with Davis, I hope Echostar or Dish doesn't buy Tivo, or you might as well say goodbye to Tivo. Dish has been losing customers and their satisfaction ratings falling like they were a cable company, and buying Tivo wouldn't help that all, the only thing that would do would be to drive it down too.
I don't know about Google or Apple buying them either don't really see the fit there, although out of those 3 choices, I'd say Google would be the best, this way you wouldn't have the problems you have with Echostar/Dish owning them, driving the technology and company into the ground. You also wouldn't have the close mindedness you get with Apple, closed platform, etc, etc, etc....
I think what they (Tivo) needs to do is to get in with some larger partners (Comcast, Time Warner, DirecTV) and get some of those boxes back into the market-place, I know they have a partnership with DirecTV but guess what, still no new DirecTivo. Get that thing out there, with as many subscribers that DirecTv has, that have DVRs that would probably gladly trad-in to get a Tivo box, or people holding out the Tivo boxes to come, they could put quite a few more units in homes.


3/25/2010 2:48:45 PM EDT
In response to: Is DISH Network Buying TiVo?
Sean commented:

To the earlier post - please don't confuse innovation with success. TiVo (and Replay) created the DVR product, but neither translated that innovation into success. TiVo's product is in front of less than 1% of TV HHs (after 10 yrs in market), and they lost 20% of their customer base over the last year, with more losses likely. If they get bought by EchoStar or somebody else, they only have themselves to blame for not finding a successful business model to translate innovation into commercial success.


3/25/2010 2:48:35 PM EDT
In response to: Is DISH Network Buying TiVo?
Sean commented:

To the earlier post - please don't confuse innovation with success. TiVo (and Replay) created the DVR product, but neither translated that innovation into success. TiVo's product is in front of less than 1% of TV HHs (after 10 yrs in market), and they lost 20% of their customer base over the last year, with more losses likely. If they get bought by EchoStar or somebody else, they only have themselves to blame for not finding a successful business model to translate innovation into commercial success.


3/25/2010 2:48:13 PM EDT
In response to: Is DISH Network Buying TiVo?
Sean commented:

To the earlier post - please don't confuse innovation with success. TiVo (and Replay) created the DVR product, but neither translated that innovation into success. TiVo's product is in front of less than 1% of TV HHs (after 10 yrs in market), and they lost 20% of their customer base over the last year, with more losses likely. If they get bought by EchoStar or somebody else, they only have themselves to blame for not finding a successful business model to translate innovation into commercial success.


3/25/2010 2:47:56 PM EDT
In response to: Is DISH Network Buying TiVo?
Sean commented:

To the earlier post - please don't confuse innovation with success. TiVo (and Replay) created the DVR product, but neither translated that innovation into success. TiVo's product is in front of less than 1% of TV HHs (after 10 yrs in market), and they lost 20% of their customer base over the last year, with more losses likely. If they get bought by EchoStar or somebody else, they only have themselves to blame for not finding a successful business model to translate innovation into commercial success.


3/25/2010 10:28:54 AM EDT
In response to: Is DISH Network Buying TiVo?
Robert commented:

I dont think anything would happen do the Directv DVR with tivo. If charlie was smart he would continue the relationship and collect the DVR/licencing fees from the tivo units that directv has. That would be a additional income source.


3/25/2010 10:28:30 AM EDT
In response to: Is DISH Network Buying TiVo?
Robert commented:

I dont think anything would happen do the Directv DVR with tivo. If charlie was smart he would continue the relationship and collect the DVR/licencing fees from the tivo units that directv has. That would be a additional income source.


3/24/2010 4:08:30 PM EDT
In response to: Is DISH Network Buying TiVo?
Davis Freeberg commented:

"And I also feel this sale could be good for TIVO. The company has been struggling over the years trying to survive, by being purchased by ECHOSTAR will ensure the TIVO brand a long secure life."

I could not disagree with you more. It would be terrible for TiVo if Dish bought them because it would show that big companies can ignore innovators and then just buy them when they finally do get caught. It would also result in TiVo losing just about every cable contract because they've got language in them that allows other MSO's to back out if they are bought by a competitor. More than likely TiVo would become an exclusive on Dish which in the long run would hurt all of their subscribers. As far as the lack of innovation goes, I doubt that we'll see Dish push the envelope that TiVo has. The weaknesses in their DVR are because they lack the vision, owning TiVo wouldn't change this, it would just kill TiVo. As far as TiVo's rumored death goes . . . how can a company with a half a billion in cash, over a year of cash flow positive results and almost zero debt be at risk of dying? TiVo may not have the big guns like Comcast and Time Warner, but they've got strong IP, great technology and a war chest to protect it. To see them bought out after all they've gone through would be terrible. Maybe if it was Google or Apple making the bid, but certainly not Dish or another company that would take the tech exclusive.


3/24/2010 3:54:45 PM EDT
In response to: Is DISH Network Buying TiVo?
Shield95 commented:

What will happen to the DirecTV DVR with TiVo?


3/24/2010 3:02:40 PM EDT
In response to: Is DISH Network Buying TiVo?
Mike commented:

I hope dish does buy tivo and should of done that along time ago.I agree scott it should be echostar buying tivo.iit would be funny if echostar did buy tivo and sued everyoone else over patents on the tivo

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