After having installed & activated several dozen TiVo units (including my own), the questions arose. Why is there a fee for this "service", because I don't see any service that warrants recurring billing.

For the standalones recording cable, there's obviously the service of maintaining channel guides for all the cable companies, but for DirecTV, that's already provided.

Someone enlighten me... because it seems to me that I own the box, and therefore a licence to the software inside it, and I pay for my DirecTV service. What else is necessary (on a monthly basis) for Tivo to work?

There's a fee because TiVo uses subscription revenue model. They don't make the box, they make the software that enables the PVR funcionality.

Also just because "I own the box" doesn't mean that you own a "licence to the software inside it.". That's akin to saying that just because you own a computer, you own the software on the hard drive. Unless you've paid for the license for that software, you don't own it! TiVo is granting you that license in return for a monthly fee.

I'm not saying it's right or wrong, good or bad, it's just the way it is.

If your not a Direct TV suscriber yet, you may wanna consider Dish Network and there PYR.

Isn't part of the fee for the fact that you are getting two tuners? Dish PVR is free, but you pay $5 per month for a second receiver.

Part of the fee does NOT got towards the second tuner. With DirecTivo, the $10/month or lifetime covers all DirecTivos on your account. Each additional DirecTivo is only $5/month just like the regular DirecTV receivers.

Yes the Dish PVR does not have a fee but it is over $300 for existing customers when the DirecTivos were $79 for existing customers. Add the $250 Tivo lifetime subscription and they are the same price. Add additional DirecTivos and they are a better deal.

-Robert

It's just a business model that allows revenue to be generated by service charges to cover operating costs, advertizing, technology development costs, support infrastructure, selling hardware at less than cost to subscribers (I'm sure TiVo must subsidize the boxes at the latest prices), etc. and then eventually a profit. Works for satellite TV, cellular (those phones typically cost you less than they cost to make)and other businesses, so why not TiVo. You can link the money you pay to hardware or software licenses or whatever you like (although this is harder to do with TiVo as a service given how VCR technology has been marketed) but this is just perceived value and eventually it all comes down to revenue versus expenditures for the business.
I paid the lifetime fee because it was easier to see the value as a high tech digital "receiver+VCR" box costing $348 ($99 plus $249) - didn't seem an unreasonable sum given the features and high-tech content.

-Paul

And my TIVO stock is doing nicely thank you :)
Go TIVO Go TIVO YAY TIVO
they need to work on the quality of the recording in my opinion . has anyone added more hardrives for theirs yet ?

I would have to beg to differ with you Steve. Software is just like music. No, we didn't write the software and therefore we can't resell any of the rights of the software. Just like music CDs. No, we didn't write the music or the lyrics, so therefore we can't resell the music as our own. On the other hand, we do own the right, once we purchase music or software, to operate it freely and as many times as we want. We can alter it, reconfigure it, etc. That one "COPY" of the software/music is rightfully ours.

I reference to Tivo, I agree that once we pay for the "COPY" of that software, we should be able to use it as many times as we wish. Especially if an upfront fee has already been collected (hardware package and all). I don't see Microsoft or Sony music asking for monthly fees to use their software or play their music in my CD player.

The Tivo units do work without paying a subscribtion, they are just have limited features, the monthly service allows you to set up season passes and wishlists that other PVR's do not have. If you want minimal features like other PVR's than just don't subscribe. The whole reason to pay the extra money is for those features you can't get elsewhere, it doesn't just record a channel at a time specified it adjusts for special episodes and so on. The features you get for the money are quite extensive.

I agree with Dave...because I tried it before I paid (back when I was uninitiated and naive). Now I think I could not go on without my TiVo! Well that's a stretch, but not far. Best device ever built!

Anyway, I just heard an update that TiVo will be raising the monthly fee by $2/month BUT...for those of us who didn't hand over the $249 for lifetime, TiVo is going to offer an "upgrade" to lifetime subscription for $199...a way to generate some quick revenue. Doesn't sound too good for TiVo stock. Also heard that someday TiVo may be free IF they start putting static ads in place whenever you hit pause...so that you have to look at the ad.

BTW, why is Best Buy not carrying the Philips DVR6000 or similar hues model any longer, only Sony TiVo and the Microsoft crap (ultimate TV...what's next Mr. Gates, automobiles?)

There are not any more Hughes or Philips being produced. Sony has bought the sole rights to Tivo and will be the only carrier of new product from now on. That was also the cause of cheap Tivo prices recently. All of the old stock was being moved.

TiVoFreak,
I have read that the increase in the monthly fee only applies to the stand alone units.

ngavchris,
Where did you find this information? I am a regular reader at the Tivo Community forums and I haven't seen this information there.

-Robert

Not to start an off-topic debate but read your software license. It is not "yours", nothing about the software is "yours". You are licensed to USE it and the license can be terminated/altered by the publisher. You are paying to "use" the software but altering, reselling, reverse enginnering or even duplicating the functionality are not allowed.

I hate the model too but we have no choice. As a computer systems architect I have to try and explain this type of model even though I hate it, yet it is the industry standard and fully backed by U.S. laws. You don't own the bits... You lease the bits... In fact, you don't even lease the bits, you "lease the right to use the bits"...

Jack Fetter

You can link the money you pay to hardware

Paul, I was curious to know what you meant by how "VCR technology has been marketed?" Thanks in advance.