History
1997-1999 - Early Years
TiVo was started by Jim Barton and Mike Ramsay as Teleworld on August 4, 1997. The two founders had previously worked together at Hewlett Packard and later at Silicon Graphics. In 1997, after leaving Silicon Graphics, they came together to discuss their entrepreneurial ventures. Barton had started his own company called Network Age Software, which aimed to create a smart home management system connecting all household appliances on a network. One of the innovative features of this concept was the ability to record and pause live television, a groundbreaking idea at the time when VCRs with physical tapes were the norm.
However, the concept of managing a smart home with such complexity was proving to be too ambitious and expensive. At this point, one of their employees, Bob Fisherman, suggested that they focus solely on the television recording aspect. The idea was embraced by the team, and they decided to shift their attention to developing a device that could revolutionize how people watched television.
The guiding principle for the team was to make TiVo "simple as a toaster" so that anyone in the family could easily use it. To design the company, TiVo collaborated with Pittard Sullivan, and together, they explored hundreds of names. They ultimately settled on "TiVo", which not only ended in "o", as they desired, but also doubled as a word that could replace "TV" in conversations. Interestingly, the name "TiVo" didn't stand for anything specific; it was a unique, catchy brand that would become synonymous with the world of digital video recording. The TiVo logo was thought of by Lisa Dunlevie as she drew a TV that had feet and wrote TiVo on it, thinking the logo could be about the evolution of television. The Darwin fish she saw on the back of the car that morning served as an inspiration. Ramsay liked the idea.
In the fall of 1998, the design of the TiVo peanut remote was devised after hundreds of designs were tested out. Sound effects which played on the TiVo interface were created by Ed Allard, which had been a colleague from Silicon Graphics. Multiple genres of sound were tested out before choosing the natural sound that Allard created. The first recorded show on a TiVo occurred in late 1998 when Jerry Springer's show was saved on the device. TiVo had planned to unveil their groundbreaking product at the CES (Consumer Electronics Show) in 1999. The response and interest were immense, leading to key partnerships with 3 companies, Philips, Thomson, and DirecTV. Philips was responsible for manufacturing the first TiVo devices, Thomson handled the TiVo units released in the UK, and DirecTV collaborated with TiVo to offer support for their platform.
TiVo's journey to launch was filled with challenges. Founder Mike Ramsay set an ambitious deadline of the end of March 1999, a timeline that the team believed to be nearly impossible to meet. Competition also loomed as ReplayTV announced their DVR around the same time, pushing TiVo to strive to be the first and most memorable product in the market.
During the development process, the TiVo team encountered numerous bugs and technical issues. Servers were running on a PC, which had been under someone's desk. The Live Guide, an essential feature for user navigation, was coded in a grueling 48-hour session and added as one of the final components. To meet their deadline, the team held daily meetings, even on weekends, working tirelessly and often sleeping in the office on couches, pillows, or blankets.
The collective dedication and determination paid off, and TiVo successfully launched its product on time. In March 1999, the company had taken a field trip to the manufacturing plant in Milpitas, California, watching the units being rolled off the manufacturing line and wearing blue lab coats and caps. The first TiVo device that came off the manufacturing line was signed by every team member and proudly displayed at the TiVo headquarters. On March 31st, the first 250 boxes were given to TiVo employees' family and friends.
Ramsay thanked everyone for making TiVo be released on time and chained up the office and told everyone to have the day off. This became known as Blue Moon Day, which is to this day is a holiday at TiVo headquarters, which has been celebrated with parties every year with Blue Moon beer.
TiVo's journey from its inception to the successful launch of its revolutionary DVR device showcased the power of innovation, teamwork, and perseverance. The company's commitment to simplifying television viewing and its dedication to delivering a high-quality product resulted in TiVo's lasting impact on the way people consume television content. As of today, TiVo continues to be a recognized brand in the entertainment industry, having left an indelible mark on how we experience television.
1999-2003 - Starting Up
TiVo initially faced challenges in its growth as it did not meet the expectations of its founders, Barton and Ramsay. In 1999, the cost of a TiVo was $500, excluding lifetime service, making it a costly purchase for consumers. To entice potential buyers, the TiVo team came up with the slogan "TV your way" to emphasize the personalized TV experience it offered.
After the launch of TiVo's DVRs, employees actively demonstrated its features, such as pausing live television and recording shows, in different retail stores to persuade customers to adopt the technology.
However, TiVo's ability to skip commercials became a point of concern for TV networks. In response, Barton and Ramsay addressed this issue by giving presentations to network companies, clarifying that users could fast forward through commercials but not entirely skip them. Additionally, TiVo implemented other advertising sources, like Showcases feature, which brought advertisements to users' TiVo devices. The company also shared viewing statistics with networks via the Internet.
Around the same time, another competitor called ReplayTV entered the DVR market, but it faced more negative reviews from TV networks due to its complete commercial-skipping capabilities. As a result, ReplayTV faced several lawsuits and eventually filed for bankruptcy after being acquired by SonicBlue in 2001.
To avoid unnecessary competition, TiVo had sought to license its technology to other companies and approached Sony to license their brand for a fee. By September 1999, TiVo had sold 18,000 DVRs and received positive customer feedback, indicating its potential for success.
Originally, Ramsay had considered transitioning back to the idea of creating a smart home unit, but the positive response from customers convinced them to focus on developing TiVo further.
In early 2002, TiVo released their next DVR, called Series 2, which further improved the product. By January 2003, TiVo's success was evident, and they hired Marty Yudkovitz, the former vice president of NBC, to serve as the company's president. In November 2003, TiVo reached a milestone by selling their one millionth unit, marking a significant achievement in their growth journey.
2003-2011 - EchoStar Lawsuit, Series 3 and Premiere
In January 2004, TiVo filed a lawsuit against EchoStar Communications, the owner of Dish Network, alleging that their DVR boxes infringed on TiVo's patent called Time Warp, issued in 2001. The legal battle lasted a lengthy 7 years before finally concluding.
In 2005, Ramsay stepped down as CEO of TiVo, but he remained as chairman while the search for a new CEO was underway. Around the same time, Yudkovitz also resigned from the company. In the fall of 2004, Tom Rogers became the vice chairman of the TiVo board. Rogers had previously served as chairman of NBC and negotiated a deal with Comcast to sell TiVo DVRs.
In July 2005, Tom Rogers assumed the role of CEO of TiVo. Under his leadership, the company made significant strides. In 2006, TiVo introduced the Series 2 Dual Tuner, enabling users to record two programs simultaneously. Additionally, the Series 3 TiVo was launched, marking the first non-DirecTiVo model capable of playing HD content. Priced at $800, the Series 3 TiVo was equipped for home theater use and featured a glow remote and an OLED screen displaying recording schedules.
In 2007, TiVo released the TiVo HD, a more budget-friendly option compared to the high-end Series 3 TiVo, retailing at $300. However, financial challenges emerged for TiVo in 2008, leading to staff layoffs.
During this period, the lawsuit against EchoStar was still pending, and in 2009, TiVo filed additional lawsuits against Verizon and AT&T, alleging unauthorized use of TiVo technology. Despite the legal battles, TiVo managed to achieve profitability for the first time by the end of 2009.
In March 2010, TiVo launched the TiVo Premiere, featuring a revamped user interface that allowed easy access to streaming services and improved program search capabilities. This move aimed to keep up with the evolving entertainment landscape.
