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Page 1
CHAPTER 1
Brand Positioning
ALICE M.TYBOUT and BRIAN STERNTHAL
W
hen TiVo launched its digital video
recorder (DVR) system in 1999, the leading technology market research firm
Forrester predicted,"These hard-drive machines will take off faster than any
other consumer electronics product has before."Forrester projected that there
would be greater than 50 percent household penetration by 2005.They were
optimistic because TiVo allowed viewers to store a library of shows tailored to
their preferences,pause or rewind liveTV,and quickly skip through commer-
cials. In addition,TiVo was easy to program. In its initial advertising,TiVo an-
nounced that it would revolutionize television by empowering viewers to
"Watch what you want, when you want."
Although TiVo aficionados love it and recommend it with an almost evan-
gelical zeal, sales have fallen far short of Forrester's (and others') enthusiastic
initial forecasts.As of January 2005, only 2.3 million households (slightly less
than 2 percent) had TiVo.At the same time, the adoption rate of DVRs was
increasing as cable...
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