• by Wayne Friedman , March 10, 2006

Although still in the red, TiVo has improved its financial picture with its latest earnings results. The digital video recorder service and equipment company also announced a new consumer pricing structure to spur better financial results.

For its fourth quarter that ended January 31, TiVo narrowed its losses to $19.5 million from $33.7 million the year before. For the year, the company also cut its losses in half to $34.4 million from $79.8 million the year before.

For the year, TiVo boasted a 45 percent growth rate for its subscription base to 4.4 million. TiVo said all new subscriptions during the fourth quarter signed on for a minimum 1-year period, which helped to reduce its low churn rate--customers who drop TiVo.

TiVo's revenues for the year increased 48 percent to $170.9 million, compared to $115.5 million last year. Fourth-quarter revenues also improved 37 percent to $47.0 million, compared to $34.2 million for the same period last year. TiVo also claimed its first positive cash flow from operations in fiscal 2006.

TiVo's new pricing structure will offer one price for both service and equipment. Previously, TiVo had offered consumers a separate fee for service and equipment.

For a one-year contract, consumers can pay $19.95 a month, or $224. A two-year commitment is$18.95 a month or $339; a three-year deal is 16.95 a month, or $469. TiVo believes this will drive improved subscription sales.

As reported previously (MediaDailyNews March 8), TiVo announced a partnership with Verizon Wireless for a new service called TiVo Mobile, which will enable its subscribers to program their digital video recorders by using their cell phones.

TiVo's stock closed at $5.75, down just under 2 percent for the day.