Light Reading is reporting that TiVo is likely to exit the retail set-top box hardware business after the acquisition by Rovi is complete. We reported last month that Rovi acquired TiVo for $1.1 billion, and today's news is based on comments by Rovi's CFO Peter Halt, who said, "Being in the hardware business isn't something that necessarily excites us." TiVo was one of the founding fathers of the DVR business but has long struggled to compete with the DVR offerings from cable/satellite companies, as well as streaming players from Roku, Apple, etc.
From Light Reading
After Rovi closes on its acquisition of TiVo and assumes the TiVo name, the new company is likely to ditch the retail set-top hardware business.
That was the message from Rovi Corp. CFO Peter Halt at the Cowen and Company Annual Technology, Media and Telecom Conference yesterday. (Hat tip: Dave Zatz.) Halt was very clear that Rovi wants to maintain its retail presence post-acquisition, but that it has little interest in being the company that manufactures TiVo boxes.
"Being in the hardware business isn't something that necessarily excites us," said Halt. "There are several box providers out there who have direct-to-retail. We'll be looking at the possibilities of working with them, having them control the box. And while that would be a partnership and we wouldn't get all the sales as a result, we think that's probably a better way to approach the consumer space."
Despite trying to reinvigorate its fan base with new products like the TiVo Bolt, TiVo Inc. has struggled in recent years to gain retail market share, losing out to competitive streaming devices like the Apple TV and Roku product line.
To read the complete Light Reading article, click here.