TIVO Business AnalysisTiVo COMPANY BACKGROUNDTiVo is a small black box that contains a digital video recorder that allows viewers to watch whatever they want, whenever they want to watch it, it allows pause and instant replay of live TV by storing information on a hard drive. The TiVo service represents what's called "the personal TV industry" – complete control over how you watch TV. The company has established manufacturing partnerships with well-established companies like Philips and Sony, and has also made some agreements regarding distribution through retail chains such as Best Buy, Circuit City and Sears. In summary, the product was designed and developed by Tivo, then licensed for manufacturing and sold in retail channels as a consumer electronics device. The price range is between $499 and $999, plus an additional $9.95 per month for TiVo service (with the option of paying $99 per year or $199 for the life of the service). Sales, expressed in terms of the number of subscribers, have grown steadily over the 14 months of the company's life, but have grown much slower than expected given the size market and consumer satisfaction. It's no wonder the company suffered losses during its short existence. Yet worryingly there is no evidence of the expected “take-off” in sales, particularly during the Christmas shopping period..