Whether you follow the company or not, you have to admit that TiVo's
That's why the real gravy for TiVo is its budding subscriber service. TiVo truly struts its killer-app stuff with its ability to download localized programming and then record shows you like -- and even shows it thinks you might like based on the shows you like.
So investors might forgive TiVo for posting a wider second-quarter loss last night, given that the company landed another 90,000 subscribers and plans to top the million-user mark over the holidays. That's the scalable sweet spot right there, folks. Forget the hardware, beyond the fact that it facilitates the service revenue. Just $8.1 million of the company's $26.7 million in revenue this past quarter came from hardware sales.
TiVo has learned to let others do the dirty work of getting enabled devices into homes. In addition to the Hughes
Last week, our own Lou Lofton pitted TiVo against Netflix
And for all their differences, both climb the same wall of worry toward (and, in the case of Netflix, beyond) the million-subscriber mark. Netflix is now profitable, and while TiVo expects to post another loss here in the third quarter, high-margin subscriber growth has a way of kick-starting the bottom line.
TiVo wouldn't mind following Netflix into market-darling land. When it does, it might just be tempted to hit pause and savor the moment.
Have a TiVo testimonial to share? Is it really a television-viewing revolution or are digital video recorders overrated? Will TiVo rise and kiss the single digits goodbye -- forever? All this and more -- in the TiVo discussion board. Only on Fool.com.