The organization squandered its best years safeguarding a patent that has lost its relevance.
The organization squandered its best years safeguarding a patent that has lost its relevance.
In the 2000s, TiVo achieved heights rarely reached by other firms. Similar to Google and Xerox, its brand turned into a verb. Individuals had to “TiVo” the latest episode of Battlestar Galactica or game 4 of the Red Sox vs. Cardinals, instead of just “recording” it. Although it did not create the DVR, TiVo made it widely recognized along with many features that we’d later consider standard, such as the options to pause or rewind live TV and view one program while recording another.
These capabilities were detailed in the now notorious US Patent 6,233,389 — commonly referred to as the Time Warp patent. TiVo invested a significant portion of the 2000s and early 2010s defending its intellectual property through a series of well-known lawsuits, especially against EchoStar. This particular legal battle persisted for nearly a decade, with TiVo initially filing the case in January 2004 and the ultimate $500 million settlement rendered in April 2011.
However, TiVo dedicated a considerable part of its key years tangled in legal disputes with significant entities in the television and digital video industries. Motorola, Time Warner Cable, AT&T, Dish Network, Cisco, and Verizon were all subjected to patent infringement litigation from TiVo. TiVo emerged victorious in nearly every instance. The US Patent Office even consented to reassess the patent on two separate occasions and upheld its assertions.
Monetizing its technology became the principal method by which TiVo generated income as it ventured into the 2010s. The issue was that by that time, the signs were clear. Netflix introduced its streaming service in January 2007. Hulu transitioned to beta later that same year and publicly launched in March 2008. That year also observed the debut of Roku’s initial device and the earliest versions of contemporary smart TVs, such as the Samsung PAVV Bordeaux TV 750.
DVRs became commonplace with most cable TV bundles. Indeed, TiVo’s interface was more refined, offering superior functionalities like remotely scheduling recordings through TiVo Central Online or transferring them to a computer with TiVoToGo. However, investing $200 or more on a standalone DVR in 2008 (especially for HD tuners) coupled with an extra subscription fee atop your cable bill, was a challenging proposition when Time Warner would provide a sufficiently good DVR for free.
Roku began offering user-friendly streaming boxes at prices meant for impulse purchases — as low as $49.99 by 2011. Google further reduced costs with the Chromecast launched in 2013. Smart TV software systems were becoming progressively competent. Though TiVo was incorporating support for Netflix, Hulu, and additional streaming platforms, it appeared to be perpetually trailing behind as it approached the new decade.
TiVo’s hardware stagnated. It wasted precious time on features such as the ability to order Domino’s via your TV. Additionally, its most profitable product — a patent centered on altering broadcast television — was steadily becoming outdated as the trend of cutting the cord gained traction.
According to nScreenMedia, traditional pay TV subscriptions peaked in the US in 2010 at around 103 million, or about 89 percent of households. By 2025, that figure had dropped to just 49.6 million, equating to 37.6 percent of households. The leading streaming services are now significantly outpacing conventional pay TV by adopting some of its strategies, particularly focusing on live content driven by sports and similar events that attract viewers to currently non-skippable ads. By the end of 2024, Netflix had 89.6 million subscribers and Disney Plus 56.8 million in the US and Canada. (These companies report subscriptions by region only, not by country.) As TiVo continued its legal battles against entities like Google and Time Warner, its clientele was diminishing.
TiVo was ultimately acquired by Rovi, a firm whose main business involves accumulating patents and either licensing them to other corporations or suing entities to compel them to license their technology. Regrettably, this was the path that TiVo embarked upon moving forward. When it was acquired by tech licensing company Xperi in 2020, the announcement of the merger did not emphasize cutting-edge hardware or innovative set-top box software. Instead, it highlighted having “one of the industry’s largest and most diverse intellectual property (IP) licensing platforms.”
After merging with Xperi, TiVo hasn’t introduced another set-top box. Its final model, the TiVo Edge, launched in 2019. Additionally, this month, the company confirmed it had discreetly sold off its remaining inventory on September 30th and would be departing the hardware market.
TiVo claims it intends to concentrate on its nascent smart TV OS — a strategy that’s likely 15 years overdue. Had the organization focused on revenue avenues beyond the legal arena, it might have positioned itself at the forefront of the smart TV rollout. Perhaps it could have created its own streaming-first device that was more innovative than a simple (and tardy) reskin of Android TV. TiVo’s interface and well-loved peanut remote were respected. Its name was a household staple. Yet, instead of developing a platform that could invigorate the next generation of televisions, it seemed preoccupied with extracting every dollar from companies that were clearly on the brink of obsolescence.
