DVR Evangelism Elevates TiVo Inc.


William Blair & Co. analyst David Farina initiated digital-video-recorder maker TiVo Inc. last week with an "outperform" rating, citing its leadership in the growing DVR space. "TiVo essentially created and evangelized" the DVR market and holds a 40 percent share, Farina wrote. "We believe that TiVo is well-equipped to remain the leader in this potentially explosive industry." The analyst likes TiVo's fixed-cost, recurring-revenue model: Customers pay a monthly fee, in addition to buying the hardware. "If the company can continue to add customers at a rapid clip, TiVo potentially could be an extremely profitable recurring-revenue business."