While most of TiVo’s subscription growth continues to come way of its MSO partners, the DVR pioneer historically has not offered a lot of detail on that part of its economic model.
However, Evolution Digital, a TiVo distribution partner that focuses on independent cable operators, has helpfully shed some light on its leasing model in this message to MSO customers (hat tip: Dave Zatz) that details a price adjustment that’s set to take effect on April 1, 2014 (Update: it appears that Evolution took it down on Tuesday morning, March 4).
In the since-removed post, addressed to all Evolution Digital TV Affiliates, Evolution explained that it will be making a “modest price adjustment for the Operator Portal and TiVo services” to reflect some new upgrades and other new features, functionality and apps that will be available to cable subs.
I don’t know what Evolution’s partners have been paying to this point (we’ve asked Evolution to shed light on that too), but here’s its updated TiVo pricing:
- $3.35 for all active TiVo DVRs
- $1.85 for all active non-DVRs (TiVo Minis)
- $.60 for active TiVo Streams (TiVo’s stand-alone video transcoding device)
“The new pricing will allow us to ensure you are getting all the updated features that makes TiVo a continued success in your system,” Evolution added.
What we don’t know is how Evolution and TiVo are splitting up those recurring revenues. However, TiVo investor Sam Biller, who was first to spot the Evolution disclosure, guessed that TiVo is capturing 60% of those fees.
Also not yet known is how Evolution is pricing Digital Terminal Adapters that are outfitted with a version of the TiVo interface customized for these simple, one-way channel-zappers. As reported last week, Vyve Broadband is poised to become first operator to use that product combination when it begins rollouts next month.
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