TiVo slashes price on entry-level boxes

TiVo said it is cutting the cost of its 40-hour Series2 digital video recorder (DVR) in half--from $199 to $99--in an effort to drive sales this summer.

The cost on the 80-hour and 140-hour boxes will remain the same for now, but a representative with the San Jose, Calif.-based company said the dropped price on the entry-level model will stay at $99 until August 20.

TiVo Series2 DVR
Credit: TiVo

Customers can still get a $100 rebate on the larger-capacity models. TiVo is also sponsoring a promotion for a free 40-hour box that must be purchased by July 17 and activated by July 31. TiVo has also worked with retailers on limited-time deals where customers can get a digital video recorder for free.

The DVRs, which use hard drives to store large amounts of content, let viewers pause live shows and program their systems to record TV broadcasts and even skip commercials.

TiVo's service costs $12.95 per month, $155.40 for 12 months and $299 for a subscription that lasts the lifetime of the recorder, which the company estimates lasts about four years.

While practically a household name, TiVo is fighting to match the success of its brand name with a lasting business model in an increasingly competitive DVR market.

Recently, the company changed CEOs and bolstered its relationship with cable and satellite partners like Comcast and DirecTV to keep them happy and to expand other business relationships.

 

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