TiVo Ends Q2 With 7.4M Subs

Drops 3,000 TiVo-owned subs, adds 239K through MSO partners
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As TiVo enters the final stretch of its merger with Rovi, the DVR and video software company revealed in a 10-Q filing Monday that it ended its fiscal second quarter with 7.4 million subscribers, buoyed by gains via its MSO customers.

TiVo lost 3,000 TiVo-owned subs, for a total of 971,000, reflecting general weakness in the retail category, but added 239,000 MSO subs, for a total of 6.68 million.

TiVo added 1.3 million cumulative subs via MSOs during the past 12-month period thanks to growth among partners that include Cogeco, its first Canadian MVPD partner, Com Hem of Sweden, Mediacom Communications, and Vodafone Spain. Virgin Media, the largest U.K. cable operator, recently introduced an upgraded version of its TiVo-powered platform.

Although the TiVo-owned sub based dropped, the installed subscription base in that category actually rose by 30,000 year-over-year due to increased sales of the TiVo Mini and the launch of the 4K-capable TiVo Bolt combined with a lower churn rate, the company said.

In a recent announcement about a renewal with Dish Network, Rovi noted that it expects its $1.1 billion acquisition of TiVo to become effective on Sept. 7, 2016. The 10-Q filing reiterated that TiVo or Rovi may be required to pay the other party a fee of $36.6 million if the deal somehow falls through.

TiVo posted Q2 revenues of $107.66 million, down from $119.45 million in the year-ago quarter, along with net income of $13.38 million (14 cents per share), up from $8.4 million (9 cents).

TiVo’s 10-Q also provided a short update on its program guide data issue.

Gracenote is currently TiVo’s sole provider of it, and that deal expired on May 19. TiVo struck a deal for that data with Rovi in on April 28, and its agreement with Gracenote provides a wind-down period post-expiration for the transition.

However, Gracenote has been unwilling to provide a short-term extension and that any longer term extension “would be at a significant increase in cost,” TiVo said, adding that it could be faced with being unable to provide the TiVo service to retail customers and certain distribution partners temporarily if they can’t find common ground.

As part of that transition, TiVo noted that it expects to discontinue support for certain legacy retail products. ZatzNotFunny recently reported that “Lifetime” service on about 3,500 still-active Series1 TiVo DVRs will cease on September 29.

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