TiVo Inc. (TIVO) recently introduced the Roamio OTA DVR, a limited edition device specifically designed for those who do not use a cable or a satellite service. Priced at $49.99, the new product comes with a monthly subscription fee of $14.99 and offers an easy-to-use service to enhance user experience.
The newly-launched TiVo Roamio has gained significant traction due to its ability to connect to the company’s mobile apps and stream and download live and recorded television programs. To improve customer engagement, TiVo’s Roamio OTA DVR features the “What to Watch Now” app for Apple’s (AAPL) iPad owners.
The Roamio OTA DVR consists of four tuners and has a storage capacity of 500GB. The new product records broadcast signals from networks like NBC, CBS, ABC and Fox that are picked up by an antenna. It could help TiVo grow its television ad analytics business and generate additional revenue. . But its success is not a given considering the fact that it will cost users $15 a month.
TiVo Roamio OTA DVR will be available at Best Buy Co. (BBY) stores from Sep 14.
TiVo primarily develops software and technology and provides advertising solutions for media and audience measurement service companies. The company’s innovative product pipeline is a major growth catalyst in our view.
We believe that TiVo has significant growth opportunities in Western Europe and Latin America, given its partnerships with local providers. TiVo’s strong balance sheet will also enable the company to pursue strategic acquisitions. Its aggressive share buyback program will boost growth in the near term.
However, intense competition particularly from companies like Dish Network (DISH) and Cablevision Systems Corp. is eroding TiVo’s subscriber base, which seems to be the primary headwind in the near term.
Currently, TiVo has a Zacks Rank #3 (Hold).