As DirectTV appears to be the majority of DVR distribution today and a viable future competitor, look to balance out the risk of being too reliant on them with retailing relationships driven by bundling of lifestyle and line-of-interest channel content. For example there could be the sports bundle that includes ESPN HD for free for a year. This would serve to lock out competitors and also grow the advertising model base necessary for the company's pursuit of profitable cash flow.
Third, TiVo could revolutionize the entire industry and make their services plans marked by simplicity and ease of understanding. As the case study shows there is a high level of complexity and confusion in services plans; drastically simplifying them would be a major competitive advantage.
Exhibits
Table 1: Financial Ratio Analysis (1999-2003)
TiVo Inc. Financial Ratio Analysis
Profitability Ratios
Return on Equity (%)
Return on Assets (%)
Return on Investment
Gross Margin
EBITDA of Revenue (%)
Operating Margin (%)
Pre-Tax Margin
Net Profit Margin (%)
Effective Tax Rate (%)
Liquidity Indicators
Quick Ratio
Current Ratio
Working Capital/Total Assets
Average Subscribers
In summary, we recommend that the IESBA reconsiders the proposals in the Exposure Draft and provides more guidance on safeguards applicable to sole practitioners and small accounting firms to ensure that the benefits of the changes outweigh the costs to SMEs. Under a principle-based approach, there should be safeguards and practical relief for all practitioners rather than rules-based outright prohibitions. The rewrite of this Independence component of the Code
(Kajuter, Baumgartner & Van, 2001, p. 37) (Hansen, Matthews, Mosconi & Sankaran, 2001, p. 33) Business 2 Consumer (B2C) The realistic and optimal development of the current e-music industry is the shift from illegitimate P2P exchanges to B2C exchanges that allow the artists, support systems and entire communities which rely on revenue from legitimate sales to ensure recovery of investment and potential profit. The potential for such a transition, which could
The Boston Matrix 1. Cash Cow: DVDs and DVD recorders are excellent sources of profit and revenues for Sony, as they have been for the last couple of years. Additionally, the electronics and game consoles, especially Playstation 2, even if encountering losses in 2004, may also be included in this category, as having a still consistent market share. 2. Dog: The classic CRT TVs and games software have encountered significant losses and
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