TiVo Hires New Shop, But Will Its Ads Also Get Skipped?

TiVo is no stranger to controversy. It caused a stir in the early part of the decade with a campaign in which a network executive was tossed out a window. Now, it's back in ad mode--and has tapped the Kaplan Thaler Group as its new agency.

The appointment comes at a delicate time for the company--TiVo only controls perhaps 25% of the DVR market--and it needs to ensure its viability. Kaplan's financial terms were not disclosed.

DVRs are in an estimated 18.3 million U.S. homes; TiVo has some 4.5 million subscribers. The devices are projected to spread to 36.7 million by 2011, according to Magna Global, and TiVo needs to differentiate itself as it seeks to capture a significant portion of that growing share.

Money-losing TiVo's stock was up Friday in midday trading, but still hovers only slightly above a 52-week low.

TiVo has suffered as cable operators and satellite providers have aggressively marketed their own generic DVRs.

"Our desire to invest in marketing to educate consumers about the clearly differentiated feature set of the TiVo service requires us to develop a broader, more sustained national consumer advertising presence in the coming year," said TiVo's vice president, consumer marketing, Katie Ho. To begin, Kaplan Thaler will capitalize on TiVo's brand equity and the general DVR benefit of commercial-skipping and time-shifted viewing.

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Some elements of the KT strategy: TiVo is going to allow consumers to view Internet broadband video on their TVs, and even share home videos with TiVo-using relatives by sending them to TV screens via a private channel. There is also TiVoToGo, where consumers will be able to view TiVo-recorded shows on Macintosh computers remotely.

TiVo is also working with leading MSO Comcast to offer its service along with VOD and HD TV from a single set-top box. TiVo developed technology that would allow the service without a visit by a Comcast technician.

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