TiVo Has ‘Moved Well Beyond a Hardware Company,’ CEO says

Expects final determination from ITC in Comcast case to come down on Nov. 9

TiVo’s business has been rapidly shifting from hardware to software, and that business shift was clear as day in the company’s third-quarter results.

“TiVo has moved well beyond a hardware company and is now an innovative entertainment technology company,” Thomas Carson, TiVo’s president and CEO, said on the company's earnings call Thursday (Nov. 2). “To that point, 95% of our revenues this quarter came from software, services, advertising and licensing.”

Though it’s not a core focus, TiVo is still keeping its hand in the retail hardware business amid the launch of a new lineup of Vox-branded products that add voice navigation and a new user interface.

TiVo said Q3 revenue rose 29%, to $197.9 million, driven by the merger between TiVo and Rovi that closed last fall. That was paired with a net loss of $17 million, versus net income of $49.9 million a year ago that factored in a $83.4 million tax benefit. TiVo expects full-year revenue in the range of $810 million to $830 million, with about $35 million coming from hardware sales.

Carson, who plans to retire from the company (a search for a successor is ongoing), reiterated that TiVo’s business now covers three categories: Platform Solutions (user experience software for pay TV operators in developed and emerging markets); Software and Services (metadata, advanced search and recommendations, voice search and advertising); and Licensing.

Though TiVo has made progress on that last category, having signed recent deals with AT&T and Liberty Global, the overhang continues due to the lack of a deal and a protracted legal battle with Comcast.

Getting Comcast under license “remains one of our top priorities,” Carson said.

Regarding the pending action at the International Trade Commission, Carson said TiVo expects a final determination to be issued on Nov. 9.