TiVo Begins Aggressive Marketing Push for Standalone Customers

–Tactics Include Rebate, "Ambassador" Contest, Sweepstakes

DVR vendor/service provider, TiVo, has begun an aggressive marketing push to acquire more "standalone" customers (i.e. "TiVo-owned" customers, as opposed to customers who have TiVo service as the result of a partnership between TiVo and their network operator), in order make up for the business it will likely lose once DirecTV ceases actively marketing its "DirecTV with TiVo" service to its subscribers (note: at the end of the second quarter, 2.3 million of TiVo’s 3.6 million customers were acquired through the DirecTV with TiVo service; for more on DirecTV’s plans to cease actively marketing the service, see [itvt] Issue 6.18 Part 3). The company last week announced a new $150 mail-in rebate that will slash the price of its entry-level Series2 40-hour DVR to $49.99, making it, the company says, the lowest-priced DVR ever (note: the rebate, which will be available through November 27th, does not apply to customers of the DirecTV with TiVo service; in order to be eligible, customers must activate their TiVo service before January 15th; those customers will also have to pay TiVo’s $12.99-per-month subscription fee).

The company says it is also launching a nationwide contest to find a "TiVo Ambassador" who will be tasked with evangelizing "the celebrated ability of TiVo to revolutionize the way we watch TV." The ambassador, who will be expected to participate in various promotional activities over a one-year period, will receive $25,000 and a TiVo-branded Mini Cooper. Candidates for the ambassador role must be participants in the TiVo Rewards program (awards points–redeemable for merchandise–to TiVo owners who refer new subscribers; according to the company, the program currently has around 250,000 members), and must have earned 25,000 points prior to the contest’s November 27th start date. They must submit a creative video that demonstrates that they are suitable for the role, write a short essay extolling the personal attributes that make them a good candidate, and provide a testimonial from a friend. The deadline for submitting entries (which must include an official entry form, available on TiVo’s Web site) is December 31st. In addition, TiVo has launched a "Passion Pays Off" sweepstakes: from September 8th through December 31st, every TiVo Rewards member who successfully acquires a new subscriber for the company will automatically be entered into a weekly random drawing for a chance to win $1,000.

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