Comcast's TiVo Deal Breaks New Ground, Unifies VOD, OTT Navigation

Yesterday, Comcast and TiVo announced an interesting deal that allows TiVo Premiere owners who subscribe to Comcast's digital video service to also receive Xfinity TV VOD alongside over-the-top choices like Netflix, Hulu Plus, Amazon, etc. It's a little bit of an alphabet soup situation to understand, which will make marketing it a challenge, but if the two companies are successful, it could actually be quite meaningful to consumers who choose to take advantage of the offer. I caught up with TiVo's EVP Jeff Klugman and had a slew of questions answered by Comcast to understand things better.

Under the deal, TiVo Premiere owners can have Comcast come to their home at no charge and install the box and a CableCARD, making sure everything is working properly with the video service and their broadband connection (this will start in the SF area, with other markets to follow). One of Premiere's primary benefits is that when a user search is conducted for a TV show or movie, the results include all potential sources - Comcast linear and VOD as well as OTT options. That's beneficial to users because as long as rights are granted according to studios' adherence to windows, trying to understand what's available on which service/device at any particular time is virtually impossible for any average consumer.

Since Comcast recently announced VOD deals with FOX and ABC - meaning it has current season programs from all major broadcasters now - making these programs more visible to subscribers is crucial. Since its own set-top box VOD navigation leaves much to be desired, Premiere owners will get more streamlined access. That will also take some of wind out of the sails of Netflix and especially Hulu Plus, which have both heavily promoted their TV program availability.

On the flip-side, this is the first time that Comcast has been willing to have its VOD offering lined up adjacent to the OTT choices, which is surely a sign of growing confidence that its range of choices is getting more competitive. Yet another first in the deal is the ability to deliver Xfinity VOD programs to subscribers without them having a set-top box; in the past, the CABLECARD's one-way delivery limitation meant users couldn't get VOD. TiVo's workaround is to use the broadband connection as an upstream signal to the VOD server.

Meanwhile, for TiVo the deal is another opportunity to expand the base of Premiere users via promotions by Comcast and soon by a big-box retailer as well. That's critical to TiVo which has felt stiffer competition from newer devices like Roku, Apple TV, boxee, and the range of connected game consoles and Blu-ray players. An important TiVo issue is its monthly service fee, which runs $20 if the Premiere box is purchased for $100. The bet here is that consumers can be persuaded to swap out the fee they currently pay Comcast for its plain-vanilla DVR service (which runs $17/mo) for all the goodies that come with TiVo for approximately the same monthly charge.

To me it's a strong offer; for the same amount a consumer would have spent on one of the other devices they can get the TiVo DVR capability and loads of other benefits with Premiere. They also get the unified experience, for basically the same fee/mo as they're already paying Comcast for its DVR service alone. The problem here is it's a complicated story to convey in an increasingly noisy landscape. The message will need to be crafted carefully and promoted vigorously to break through.

Categories: Cable TV Operators, Devices, Video On Demand

Topics: Comcast, TiVo