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TiVo Is Entering China!

Contributed by mm | January 25, 2007 9:21 PM PST

I always mention to my friends that the $12.95 a month I paid to TiVo was the best monthly spending when we were in the States. I am a huge fan of TiVo and even successfully referred a couple of PFBlog readers to the service (and I got a D-Link USB Wireless Card from TiVo :-)). It's a pity we couldn't take the box back when we relocated in late 2005; our entire family has been missing the freedom TiVo brought to us ever since.

Now comes the good news: TiVo is available in China now! TiVo, partnering with TGC Inc., is now promoting the service in the mainland China market. Based on its localized manual, it seems that the TiVo boxes in the China market have almost exactly the same interface and functionality.

Of course, China market requires a different pricing strategy. Currently there is only one model in the market: a 80-hour Series 2 version that is priced at 2,950 yuan (or about $380), with three-months of free service. I would say it is very pricy -- 80-hour Series 2 DT, an enhanced model that can record two shows at the same time, only sells for $69.99 in the US market with 1-year service commitment.

On the other hand, the monthly service fee is much lower in this part of the world. 15 yuan, or less than $2 a month, is all it needs to maintain your TiVo subscription. One can also enjoy lifetime subscription for 495 yuan ($64) -- this is less than five months' of subscription price in the States.

This pricing strategy is making a lot of sense. Here in China people are not getting used to expensive monthly subscription fees (for example, broadband internet only costs $10/month and cable TV is only $4/month). Therefore, TiVo does not have the luxury of selling the hardware at a loss, and expect to recover the loss from monthly charges.

Apparently, at $380 for a slightly outdated machine, TiVo is making a killing on every sale. However, this also makes me wonder whether this business model will successfully attract enough loyal customers to be sustainable. For now, I'm still waiting on the sideline, hoping TiVo can reduce the price to cater to a larger potential customer base. (TiVo, please face it: if I, as a loyal past customer who is also quite well paid, am still struggling at the checkout counter, what you ask for is indeed too expensive.)

This Post Has Received 48 Comments. Share Your Opinions Too.

Josh Commented on January 26, 2007

Considering that you think it is one of the best purchases your family has ever made, notwithstanding the possible sale of your old Tivo before moving and the residual value of the new Tivo in China, the break even on owning a Tivo in China vs. continuing to use your Tivo in the US at $12/month is only three years.

If you are going to be in China for at least three years, what do you have to lose?

MM Commented on January 26, 2007

I will lose if TiVo couldn't become a success in China with this pricing model and has to exit the market ... I will end up with a pricy box which only does basic recording.

Mission Debt Freedom Commented on January 26, 2007

We couldn't live without our TiVo box. Between two jobs and two kids we don't settle in to watch much TV until late and we just zip through our recordings from earlier in the night (no commercials!). I hope it works out for you in China.

Kyle Commented on January 26, 2007

Why would anyone bother with a TIVO (with monthly fee) when you can buy all sorts of tv recorders that record onto hard drives. We bought a Toshiba that records all the shows we want onto its hard drive or a dvd. There isn't a monthly fee! It is perfect. We can record shows live and pause TV. Or we can just program it to record the shows we want automatically. It works perfect and no monthly fee!!

Giovani Milam Commented on April 17, 2007

Alec Baldwin asks for his voice to be removed from an "unfair" documentary about Arnold Schwarzenegger...

Giovani Milam Commented on April 17, 2007

Alec Baldwin asks for his voice to be removed from an "unfair" documentary about Arnold Schwarzenegger...

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