) recently announced that Midcontinent Communications has been
deploying TiVo's advanced TV offerings to the latter's customers.
Midcontinent Communications provides data, video, phone and cable
advertising services to residential as well as business clients
of Minn., Wis., N.D. and S.D.
Midcontinent customers of Rapid City and the Northern Black
Hills of S.D. will be the first to enjoy the new offerings while
the services will be available for the rest of the customers in
the near term. The TV products and services available to
Midcontinent customers include TiVo Premiere Q series DVR and two
complementary offerings, TiVo Mini and TiVo Stream.
With these two new offerings, customers can watch their
favorite shows on multiple televisions in the house (with the
help of low-cost IP set top through TiVo Mini). Additionally,
customers can stream recorded or live shows in their smartphones
or tablets (through TiVo Stream) with only one TiVo Premiere Q
series DVR being installed in the household.
TiVo has been focusing on partnerships and strategic alliances
to drive subscriber growth. TiVo has a number of partnerships
with major companies including
), Charter Communications, RCN, and Suddenlink. TiVo also
expanded its services globally through partnerships with ONO,
Virgin Media Inc.
) and Canal Digital (in Scandinavia).
We believe that TiVo will continue to pursue opportunities for
developing strategic partnerships with cable operators both in
the domestic as well as international markets in order to boost
its subscriber base going forward. We believe that these
partnerships will also help in countering competition over the
Although the legal settlements with EchoStar, AT&T,
) did away with a major overhang on the stock, we believe that
TiVo needs to focus on increasing its subscriber base by
expanding its product portfolio going forward.
However, pending patent litigation issues, rising R&D
costs, and higher hardware and sales & marketing costs are
expected to affect TiVo's profitability in the short term.
Increasing competition from cable and satellite providers could
also hurt profitability over the long term.
Currently, TiVo has a Zacks Rank #3 (Hold).
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