TIVO’s Stock Sucks, duh!
After years of lazily wondering why TIVO (the company and its stock) never did well, despite having a brand that’s embedded in what it is (DVR), like Kleenex is to tissues, I realize why.
It’s not just the fact that the MSOs (multple system operators or major cable companies) offer DVR. It’s the fact that the major TV networks offer replays of the shows, in their entirety, online, coupled with the fact that many more people are watching video on their laptops. You don’t need the extra cost of paying for TIVO. You cost is wading through the network commercials.
The fact that I don’t have cable doesn’t really matter any more, since some of the cable networks offer delayed programming online too, although not as complete (really wished American Chopper was online).
So all this gave me insight as to why TIVO’s stock sucks (NASDAQ: TIVO). The malaise began well before the networks began putting much of their content online. After all, TIVO was a high flyer in the dotcom boom J. Since the bust, it’s traded in the low single digits to the low 10s.
Online video from the networks is laced with advertising.
But what surprised me is that I’m still tolerable of the ads, although not as much as on TV. I keep wanting to skip but the freaking cursor won’t adjust at all, except backward…ugh! I’d be cool with an ability to see the ad on the side rather than being forced to wade through the full 30 seconds.
But that’s what’s interesting…the content is so compelling that I’d bide my time through the commercial. Any other video site showing non-quality programming wouldn’t work. So if a buddy sent me a link to a funny Veoh video, I wouldn’t waste the time waiting for the commercial to end. But because I know the Office and 30 Rock are good shows, I’ll force my way through it.
UPDATE: Despite a record profitable quarter, TIVO stock didn’t budge as investors were hoping for a little more (actual dollar value didn’t change much, from $8.10 to $8.60 the day after earnings release, but % change increased to a high of 7% the next day, but settled back to 4% as of May 30). Thanks Larry for the post.
