Press Release


TiVo Reports Results for the Second Quarter Fiscal Year 2010 Ended July 31, 2009

- Adjusted EBITDA for the second quarter was $5.2 million, the eighth straight quarter of Adjusted EBITDA profitability; exceeding guidance

ALVISO, Calif., Aug. 26 /PRNewswire-FirstCall/ -- TiVo Inc. (Nasdaq: TIVO), the creator of and a leader in television services for digital video recorders (DVRs), today reported financial results for the second quarter ended July 31, 2009.

"This was a solid quarter for TiVo as we posted our eighth straight quarter of Adjusted EBITDA profitability, exceeding guidance," said Tom Rogers, President and CEO of TiVo. "We made significant progress on developing partnerships that enable us to access previously untapped distribution opportunities, announcing important deals with RCN and Best Buy. Our audience research and measurement business continues to prove why it will be a model that supports the future of the television advertising world as we launched local markets ratings and announced an important partnership with Quantcast, providing the first combined view of television and web viewing in the home. Finally, our intellectual property was validated yet again as EchoStar was found to be in contempt in the United States District Court, Eastern District of Texas."

For the second quarter, service and technology revenues were $48.8 million, compared with $53.5 million for the same period last year and $48.5 million in the prior period. Adjusted EBITDA was $5.2 million, compared to guidance of breakeven to $2 million, $10.6 million in the year-ago period, and $5.1 million in the prior quarter. As expected, Adjusted EBITDA was down compared to the same quarter last year as a result of lower service and technology revenues, the longer amortization of product lifetime revenues, increased legal expenses, and less of a benefit from inventory reserve utilization. TiVo reported a net loss of ($2.9) million, compared to guidance of a net loss of ($6) to ($8) million and a net income of $2.9 million in the second quarter of last year. Net loss per share was ($0.03), compared to net income of $0.03 per share for the second quarter of last year. Finally, cash, cash equivalents and short-term investments increased to $238 million and Cash Flow From Operating Activities was approximately $5 million in the second quarter.

"On the mass distribution front, in addition to our ongoing efforts with large multichannel operators, one of our key strategies has been to focus on small and medium sized cable operators that cannot make the significant investments in new technologies necessary to compete. To that end, we recently announced that RCN has chosen TiVo as its primary DVR offering. This will be the first time any cable provider is utilizing both TiVo's hardware and software platforms, helping RCN provide its customers a seamless experience that fully integrates RCN's linear and VOD service with a complete array of TiVo delivered broadband content, thereby creating an entertainment package via TiVo's user interface and easy-to-use remote that goes well beyond what other cable and satellite providers can currently offer. The TiVo/RCN DVR will be based on our existing standalone platform and does not require working through the middleware and infrastructure complexities that other mass distribution deployments do. As such, a roll out is only months away and will provide RCN customers with the retail product's latest features."

Updating the progress of Comcast roll-out, Mark Hess, Comcast Senior Vice President of Video Products, said, "As anticipated, TiVo On-line Scheduler has started its early roll-out in our Boston market. We're also excited about launching the Comcast-TiVo product beyond our Boston market and are now in the initial preparation phases for taking it to an additional yet-to-be announced market as well as for our previously announced plans to offer it as the primary DVR option in another yet-to-be named market."

Lastly, the new DIRECTV TiVo HD DVR remains on track for its rollout and, as we stated previously, once launched, it will be immediately accessible to DIRECTV's entire national customer base.

"In terms of our work to distribute TiVo internationally, we continue to build our global footprint through strategic alliances with international broadcasters. We have now come upon the one-year anniversary of our successful launch with Australia's Seven Network subsidiary, Hybrid Television Services. Earlier this year, TV New Zealand, New Zealand's largest free to air and national broadcaster, took an equity stake in Hybrid Television Services paving the way for the promotion and distribution TiVo in New Zealand by the end of 2009. We continue to focus on international players that allow for near-term implementation. We are looking to avoid international deals that would have potentially lengthy, drawn-out rollouts involving cumbersome middleware, steering clear, as much as possible, of the issues we have encountered with the domestic cable industry."

Mr. Rogers continued, "Turning to the TiVo-Owned side of the business, this quarter we announced a significant strategic alliance with Best Buy, which we believe has the potential to meaningfully increase standalone sales. The alliance seeks to drive greater distribution of TiVo products and its user experience, and to provide Best Buy with a digital platform in the home to expand its customer relationships beyond the store cash register - a major step intended to accelerate Best Buy's evolution in digital media and better serve the needs of its customers. Best Buy believes that TiVo is a superior digital solution which enables consumers to maximize enjoyment and entertainment value from their high definition television sets by enabling them to easily navigate and experience the vast array of content options available. Additionally, Best Buy is making a commitment to TiVo to substantially increase the levels of marketing and merchandising of retail TiVo DVR devices, as well as other devices that may feature the TiVo user interface and platform in the future starting in 2010.

"As part of this deal, TiVo and Best Buy are working towards the development of new user interface features for TiVo DVRs sold by Best Buy, which will build upon TiVo's seamless integration of broadcast, cable and broadband content on the television set. Additionally, we are working with Best Buy to integrate our user interface, search, and other unique features into their exclusive brands of televisions, assuring that they remain at the forefront of new digital home entertainment offerings. Beginning early next year, Best Buy will be putting substantial marketing muscle behind this relationship as newly innovative features are rolled out."

"This past quarter we also announced the addition of hundreds of new free Web videos available directly to many TiVo subscribers, as well as the ability for any video podcast provider to publish video content to TiVo DVRs using industry-standard Really Simple Syndication (RSS) and H.264 video. This new feature provides a way for branded channels on the Web to be brought to the television set with the look and feel of television. Already hundreds of new channels are being added to TiVo's current suite of free Web videos, including mainstream outlets such as CBS, FOX, and Oprah," Rogers stated.

TiVo-Owned subscription gross additions for the second quarter were approximately 31,000, compared to 36,000 gross additions for the year-ago period. The TiVo-Owned monthly churn rate was 1.5%. Overall, TiVo-Owned subscriptions ended the quarter at 1.6 million. Cumulative total subscriptions as of July 31, 2009 were approximately 3.0 million.

"On the intellectual property front, we scored a significant victory this quarter when EchoStar was found to be in contempt in the United States District Court, Eastern District of Texas. EchoStar is currently appealing the contempt order. The Court of Appeals stayed the injunction while it considers the appeal. We expect that there will be a hearing on this matter in the November timeframe. Additionally, along with the contempt order TiVo was also awarded $103 million in damages covering the original appeal stay period. The United States District Court, Eastern District of Texas is currently assessing the appropriate sanctions for the contempt period. Despite EchoStar's efforts to delay the hearing on these sanctions, the Court held the hearing and indicated it would rule in the relative near future. We remain confident in our position and look forward to getting resolution both on EchoStar's appeal and on the contempt sanctions."

Additionally, today we filed complaints in the United States District Court, Eastern District of Texas against AT&T Inc. and Verizon Communications, Inc. for infringement of three TiVo patents, including the Time Warp patent. The complaints seek damages for past infringement and a permanent injunction, similar to the one issued by the United States District Court, Eastern District of Texas against DISH/EchoStar. "We will continue to pursue enforcement where necessary to stop infringement of our intellectual property," Rogers stated.

Rogers continued, "In terms of our advertising and audience research business, our role in a constantly changing world of television consumption is to offer solutions that can help develop a business model that works with the television industry. This past quarter, we announced a deal with Quantcast, a pioneering Web-based audience insights service focused on enabling addressable advertising, that provide for the very first time advertisers and media companies with the ability to measure all the television and online video consumption from a single household. Importantly, through this data, we will be able to answer whether online video consumption and television viewing are complementary, or if one adversely affects the other.

"In addition, we also launched in the quarter our Stop||Watch(TM) Local Markets ratings service, which we first announced in April, is now collecting anonymous TiVo subscriber viewing habits in three key local markets: San Francisco, Orlando, and Tucson. For over 75% percent of television markets there is a total lack of available electronic data on local viewing, and now TiVo has the ability to provide critical information, not to mention substantially improve measurement accuracy. Also, during the quarter we increased the size of the audience sample from 100,000 to 250,000 on its way to 300,000, which will make TiVo's sample size 75 times greater than the most widely used audience sample and provides the basis for being able to deliver large sample size local ratings. With these two products, we now provide five distinctive audience research products that fill voids with data that was otherwise unavailable to the market. The Quantcast and local data sample now join Stop||Watch, PowerWatch, and TRA purchase decision offerings."

Rogers concluded, "We made significant progress during the second quarter and are beginning to see our long-term initiatives bear fruit. We have a strategic relationship with the largest electronics retailer, Best Buy, the largest cable operator, Comcast, and the largest satellite provider, DIRECTV. We are continuing to lead innovation of television viewing, advertising and measurement, which we fully expect will help to drive further the distribution of TiVo products and services as well as to define the standards for all television consumption. We have made good strides in protecting our intellectual property. And very importantly, we have built a strong financial foundation, which provides us with the runway to pursue several catalysts that will provide substantial momentum for TiVo going forward."

Management Provides Financial Guidance

For the third quarter of fiscal 2010, TiVo anticipates service and technology revenues in the range of $46 million to $48 million, a net loss in the range of ($10) million to ($8) million, and Adjusted EBITDA in the range of ($2) million to breakeven.

This financial guidance is based on information available to management as of August 26(th), 2009. TiVo expressly disclaims any duty to update this guidance.

Management's guidance includes Adjusted EBITDA, a non-GAAP financial measure as defined in Regulation G. TiVo has provided a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) in the attached schedules solely for the purpose of complying with Regulation G and not as an indication that EBITDA or Adjusted EBITDA is a substitute measure for net income (loss).

Conference Call and Webcast

TiVo will host a conference call and Webcast to discuss the second quarter financial and operating results and guidance outlook at 2:00 pm PT (5:00 pm ET), today, August 26, 2009. To listen to the discussion, please visit and click on the link provided for the Webcast or dial (888) 801-6419 (no password required). The Webcast will be archived and available through September 2, 2009 at or by calling (913) 312-0376 and entering the conference ID number 7944216.

About TiVo Inc.

Founded in 1997, TiVo Inc. (Nasdaq: TIVO - News) developed the first commercially available digital video recorder (DVR). TiVo offers the TiVo service and TiVo DVRs directly to consumers online at and through third-party retailers. TiVo also distributes its technology and services through solutions tailored for cable, satellite, and broadcasting companies. Since its founding, TiVo has evolved into a premier single solution media center by combining its patented DVR technologies and universal cable box capabilities with the ability to aggregate, search, and deliver millions of pieces of broadband, cable, and broadcast content directly to the television. An economical, one-stop-shop for in-home entertainment, TiVo's intuitive functionality and ease of use puts viewers in control by enabling them to effortlessly navigate the best digital entertainment content available through one box, with one remote, and one user interface, delivering the most dynamic user experience on the market today. TiVo also continues to weave itself into the fabric of the media industry by providing interactive advertising solutions and audience research and measurement ratings services to the television industry.

TiVo, "TiVo, TV your way." Season Pass, WishList, TiVoToGo, and the TiVo Logo are trademarks or registered trademarks of TiVo Inc.'s subsidiaries worldwide. (C) 2009 TiVo Inc. All rights reserved

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, TiVo's future business and growth strategies including TiVo's mass distribution strategy and the timing of additional mass distribution deals, profitability and financial guidance, distribution of the TiVo service domestically with Comcast, and internationally in Australia, New Zealand and other regions, the timing of the rollout of the DIRECTV HD DVR, growth and innovation in TiVo's advertising and audience research measurement business, future audience research sample size, future capabilities and results of the TiVo Quantcast relationship, future development and promotional activities with Best Buy and the impact of such activities on our subscription sales and other results of operations, the timing of the availability of TiVo products with RCN, future developments and results of TiVo's litigation with EchoStar, AT&T Inc. and Verizon Communications, Inc. how TiVo intends to exploit its intellectual property, TiVo's future marketing spend and related activities, and financial stability and performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development, competitive service offerings and lack of market acceptance, as well as the other potential factors described under "Risk Factors" in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2009, our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2009, and Current Reports on Form 8-K. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. TiVo disclaims any obligation to update these forward-looking statements.

                                     TIVO INC.
                (In thousands, except per share and share amounts)

                                Three Months Ended          Six Months Ended
                                     July 31,                    July 31,
                                -------------------        -----------------
                                 2009         2008         2009         2008
                                 ----         ----         ----         ----
        Service revenues       $41,500      $48,174      $83,629      $96,617
        Technology revenues      7,349        5,369       13,735       11,776
        Hardware revenues        8,533       11,699       14,909       17,644
                                 -----       ------       ------       ------
    Net revenues                57,382       65,242      112,273      126,037
    Cost of revenues
        Cost of service
         revenues (1)            9,831       11,245       19,981       22,439
        Cost of technology
         revenues (1)            5,862        3,124       10,345        7,044
        Cost of hardware
         revenues               12,935       15,274       23,511       25,639
                                ------       ------       ------       ------
      Total cost of revenues    28,628       29,643       53,837       55,122
                                ------       ------       ------       ------
            Gross margin        28,754       35,599       58,436       70,915
                                ------       ------       ------       ------
        Research and
         development (1)        14,358       15,323       29,424       30,071
        Sales and
         marketing (1)           5,463        5,906       11,158       11,842
        Sales and marketing,
         acquisition costs         838          888        1,820        2,047
        General and
         administrative (1)     11,227       10,869       23,469       21,205
                                ------       ------       ------       ------
            Total operating
             expenses           31,886       32,986       65,871       65,165
                                ------       ------       ------       ------
            Income (loss)
             from operations    (3,132)       2,613       (7,435)       5,750
        Interest income            136          421          326        1,000
        Interest expense
         and other                  78          (94)          78         (181)
                                   ---          ---          ---         ----
            Income (loss)
             before income
             taxes              (2,918)       2,940       (7,031)       6,569
            Provision for
             income taxes          (19)         (23)         (35)         (36)
                                   ---          ---          ---          ---
        Net income (loss)      $(2,937)      $2,917      $(7,066)      $6,533
                               =======       ======      =======       ======
        Net income (loss)
         per common
         share - basic          $(0.03)       $0.03       $(0.07)       $0.07
                                ======        =====       ======        =====
        Net income (loss)
         per common
         share - diluted        $(0.03)       $0.03       $(0.07)       $0.06
                                ======        =====       ======        =====
        Weighted average
         common shares
         used to calculate
         basic net
         income (loss)
         per share         105,840,076  100,025,002  104,076,621   99,705,914
                           ===========  ===========  ===========   ==========
        Weighted average
         common shares
         used to calculate
         diluted net
         income (loss)
         per share         105,840,076  102,217,222  104,076,621  102,489,411
                           ===========  ===========  ===========  ===========

        (1) Includes stock-based compensation expense as follows:
            Cost of service
             revenues             $289         $239         $552         $430
            Cost of
             revenues              614          507        1,171        1,113
            Research and
             development         1,960        2,140        4,451        4,122
            Sales and marketing    550          336        1,235          876
            General and
             administrative      2,571        2,352        5,645        4,510

                                     TIVO INC.
                (In thousands, except per share and share amounts)

                                                        July 31,   January 31,
                                                          2009        2009
                                                        --------  -----------

    Cash and cash equivalents                           $147,007     $162,337
    Short-term investments                                90,864       44,991
    Accounts receivable, net of allowance for doubtful
     accounts of $960 and $770                            12,964       14,283
    Inventories                                            4,849       13,027
    Prepaid expenses and other, current                    4,640        4,896
                                                           -----        -----
      Total current assets                               260,324      239,534

    Property and equipment, net                           10,709       10,285
    Purchased technology, capitalized software, and
     intangible assets, net                               10,526       10,597
    Prepaid expenses and other, long-term                  1,479        1,268
    Long-term investments                                  7,087        3,944
                                                           -----        -----
      Total long-term assets                              29,801       26,094
                                                          ------       ------
          Total assets                                  $290,125     $265,628
                                                        ========     ========


      Accounts payable                                   $10,935       $9,844
      Accrued liabilities                                 22,448       25,054
      Deferred revenue, current                           40,705       47,560
                                                          ------       ------
        Total current liabilities                         74,088       82,458

      Deferred revenue, long-term                         26,054       28,557
      Deferred rent and other long-term liabilities          126          126
                                                             ---          ---
        Total long-term liabilities                       26,180       28,683
                                                          ------       ------
          Total liabilities                              100,268      111,141


      Preferred stock, par value $0.001:
        Authorized shares are 10,000,000;
        Issued and outstanding shares - none                   -            -
      Common stock, par value $0.001:
        Authorized shares are 275,000,000;
        Issued shares are 108,891,757 and 103,604,015,
         respectively and outstanding shares are
         108,350,354 and 103,370,523, respectively           109          104
      Additional paid-in capital                         874,435      829,273
      Accumulated deficit                               (679,262)    (672,196)
      Treasury stock, at cost - 541,403 shares and
       233,492 shares, respectively                       (4,082)      (1,659)
      Accumulated other comprehensive loss                (1,343)      (1,035)
                                                          ------       ------
          Total stockholders' equity                     189,857      154,487
                                                         -------      -------
          Total liabilities and stockholders' equity    $290,125     $265,628
                                                        ========     ========

                                    TIVO INC.
                                  (In thousands)
                                                       Six Months Ended
                                                            July 31,
                                                         2009      2008
                                                         ----      ----
      Net income(loss)                                 $(7,066)   $6,533
      Adjustments to reconcile net income(loss) to
       net cash provided by(used in) operating
        Depreciation and amortization of property
         and equipment and intangibles                   4,610     5,070
        Stock-based compensation expense                13,054    11,051
        Utilization of trade credits                        23         -
        Allowance for doubtful accounts                    187        69
      Changes in assets and liabilities:
        Accounts receivable                              1,132     5,494
        Inventories                                      8,178     7,838
        Prepaid expenses and other                          22      (115)
        Accounts payable                                   525    (9,595)
        Accrued liabilities                             (2,565)   (3,515)
        Deferred revenue                                (9,358)  (12,508)
        Deferred rent and other long-term liabilities        -      (164)
                                                           ---      ----
          Net cash provided by operating activities     $8,742   $10,158
                                                        ------   -------
      Purchases of short-term investments             (160,876)        -
      Sales or maturities of short-term investments    114,952    15,294
      Purchase of long-term investment                  (3,400)        -
      Acquisition of property and equipment             (2,865)   (2,535)
      Acquisition of  intangibles                       (1,532)     (318)
                                                        ------      ----
          Net cash provided by (used in) investing
           activities                                 $(53,721)  $12,441
                                                      --------   -------
      Proceeds from issuance of common stock related
       to exercise of common stock options              29,793     5,050
      Proceeds from issuance of common stock related
       to employee stock purchase plan                   2,320         -
      Treasury Stock - repurchase of stock for tax
       withholding                                      (2,423)     (684)
      Payment under capital lease obligation               (41)        -
                                                           ---       ---
          Net cash provided by financing activities    $29,649    $4,366
                                                       -------    ------
     EQUIVALENTS                                      $(15,330)  $26,965
                                                      --------   -------

      Balance at beginning of period                   162,337    78,812
                                                       -------    ------
      Balance at end of period                        $147,007  $105,777
                                                      ========  ========

                                     TIVO INC.
                                    OTHER DATA

                                      Three Months     Guidance Reconciliation
                                      Ended July 31,      Three Months Ending
                                     ---------------      -------------------
                                      2009     2008         October 31, 2009
                                      ----      ----        ----------------
                                      (In thousands)         (In millions)

    Net income (loss)               $(2,937)    $2,917         $(10)-$(8)
    Add back:
      Depreciation & amortization     2,300      2,498            2 - 3
      Interest income & expense        (137)      (405)           0 -(1)
      Provision for income tax           19         23              -
                                        ---        ---             ---
        EBITDA                         (755)     5,033           (8)-(6)
      Stock-based compensation        5,984      5,574             $6
                                      -----      -----             ---
        Adjusted  EBITDA             $5,229    $10,607           $(2)-$0
                                     ======    =======           =======

EBITDA and Adjusted EBITDA Results. TiVo's "EBITDA" means income before interest income and expense, provision for income taxes and depreciation and amortization. TiVo's "Adjusted EBITDA" is EBITDA less expense for stock-based compensation. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles, which we refer to as GAAP. We have presented EBITDA and Adjusted EBITDA solely as supplemental disclosure because we believe they allow for a more complete analysis of our results of operations and we believe that EBITDA and Adjusted EBITDA are useful to investors because EBITDA and Adjusted EBITDA are commonly used to analyze companies on the basis of operating performance. In addition, because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation enhances the ability of management and investors evaluate our operating performance over multiple periods. Management does not use EBITDA or Adjusted EBITDA as a measure of liquidity because, among other things, they do not exclude the impact of deferred revenues associated with the amortization of product lifetime subscriptions. We do not use stock-based compensation expense in our internal measures. A limitation associated with these non-GAAP measures is that they do not include any stock-based compensation expense related to hiring, retaining, and incentivizing the Company's workforce. EBITDA and Adjusted EBITDA are not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of operating performance as determined in accordance with GAAP.

                                     TIVO INC.
                                    OTHER DATA

                                                  Three Months Ended
                                                       July 31,
             (Subscriptions in thousands)           2009       2008
             ----------------------------           ----       ----
      TiVo-Owned Subscription Gross Additions        31         36

      Subscription Net Additions/(Losses):
      TiVo-Owned                                    (42)       (42)
      MSOs/Broadcasters                            (104)      (136)
                                                   ----        ----
        Total Subscription Net Additions/(Losses)  (146)      (178)
      Cumulative Subscriptions:
      TiVo-Owned                                  1,582      1,686
      MSOs/Broadcasters                           1,468      1,937
                                                  -----      -----
        Total Cumulative Subscriptions            3,050      3,623
      % of TiVo-Owned Cumulative Subscriptions
       paying recurring fees                         59%        60%

    Included in the 1,582,000 TiVo-Owned subscriptions are approximately
    219,000 lifetime subscriptions that have reached the end of the period
    TiVo uses to recognize lifetime subscription revenue.  These lifetime
    subscriptions no longer generate subscription revenue.

Subscriptions. Management reviews this metric, and believes it may be useful to investors, in order to evaluate our relative position in the marketplace and to forecast future potential service revenues. The TiVo-Owned lines refer to subscriptions sold directly or indirectly by TiVo to consumers who have TiVo-enabled DVRs and for which TiVo incurs acquisition costs. The MSOs/Broadcasters lines refer to subscriptions sold to consumers by MSOs/Broadcasters such as DIRECTV, Cablevision Mexico, Seven (Australia), and Comcast for which TiVo expects to incur little or no acquisition costs. Additionally, we provide a breakdown of the percent of TiVo-Owned subscriptions for which consumers pay recurring fees, including on a monthly and a prepaid one, two, or three year basis, as opposed to a one-time prepaid product lifetime fee.

We define a "subscription" as a contract referencing a TiVo-enabled DVR for which (i) a consumer has committed to pay for the TiVo service and (ii) service is not canceled. We count product lifetime subscriptions in our subscription base until both of the following conditions are met: (i) the period we use to recognize product lifetime subscription revenues ends; and (ii) the related DVR has not made contact to the TiVo service within the prior six month period. Product lifetime subscriptions past this period which have not called into the TiVo service for six months are not counted in this total. Effective November 1, 2008, we extended the period we use to recognize product lifetime subscription revenues from 54 months to 60 months for all product lifetime subscriptions acquired on or before October 31, 2007. We now amortize all product lifetime subscriptions over a 60 month period. We are not aware of any uniform standards for defining subscriptions and caution that our presentation may not be consistent with that of other companies. Additionally, the subscription fees that some of our MSOs/Broadcasters pay us may be based upon a specific contractual definition of a subscriber or subscription which may not be consistent with how we define a subscription for our reporting purposes.

                                      TIVO INC.
                         OTHER DATA - KEY BUSINESS METRICS

                                                    Three Months
                                                    Ended July 31,
    TiVo-Owned Churn Rate                          2009       2008
    ---------------------                          ----       ----
                                             (In thousands, except churn
                                                    rate per month)
    Average TiVo-Owned subscriptions              1,604      1,712
    TiVo-Owned subscription cancellations           (73)       (78)
                                                   ----       ----
    TiVo-Owned Churn Rate per month                -1.5%      -1.5%
                                                   ----       ----

TiVo-Owned Churn Rate per Month. Management reviews this metric, and believes it may be useful to investors, in order to evaluate our ability to retain existing TiVo-Owned subscriptions (including both monthly and product lifetime subscriptions) by providing services that are competitive in the market. Management believes factors such as service enhancements, service commitments, higher customer satisfaction, and improved customer support may improve this metric. Conversely, management believes factors such as increased competition, lack of competitive service features such as high definition television recording capabilities in our lowest cost product offerings, current economic conditions, and increased price sensitivity may cause our TiVo-Owned Churn Rate per month to increase.

We define the TiVo-Owned Churn Rate per month as the total TiVo-Owned subscription cancellations in the period divided by the Average TiVo-Owned subscriptions for the period (including both monthly and product lifetime subscriptions), which then is divided by the number of months in the period. We calculate Average TiVo-Owned subscriptions for the period by adding the average TiVo-Owned subscriptions for each month and dividing by the number of months in the period. We calculate the average TiVo-Owned subscriptions for each month by adding the beginning and ending subscriptions for the month and dividing by two. We are not aware of any uniform standards for calculating churn and caution that our presentation may not be consistent with that of other companies.

                                            Three Months     Twelve Months
                                           Ended July 31,    Ended July 31,
                                          ---------------   ---------------
                                            2009     2008     2009     2008
                                            ----     ----     ----     ----
    Subscription Acquisition Costs            (In thousands, except SAC)
    Sales and marketing, subscription
     acquisition costs                      $838     $888   $5,811   18,292
    Hardware revenues                     (8,533) (11,699) (38,398) (50,950)
    Less: MSOs/Broadcasters-related
     hardware revenues                     1,516    4,934    5,190    5,632
    Cost of hardware revenues             12,935   15,274   55,614   78,712
    Less: MSOs/Broadcasters-related cost
     of hardware revenues                 (1,433)  (4,524)  (4,924)  (5,105)
                                          ------   ------   ------   ------
      Total Acquisition Costs              5,323    4,873   23,293   46,581
                                           =====    =====   ======   ======
      TiVo-Owned Subscription Gross
       Additions                              31       36      171      262
      Subscription Acquisition Costs
       (SAC)                                $172     $135     $136     $178
                                            ====     ====     ====     ====

Subscription Acquisition Cost or SAC. Management reviews this metric, and believes it may be useful to investors, in order to evaluate trends in the efficiency of our marketing programs and subscription acquisition strategies. We define SAC as our total TiVo-Owned acquisition costs for a given period divided by TiVo-Owned subscription gross additions for the same period. We define total acquisition costs as sales and marketing, subscription acquisition costs less net TiVo-Owned related hardware revenues (defined as TiVo-Owned related gross hardware revenues less rebates, revenue share and market development funds paid to retailers) plus TiVo-Owned related cost of hardware revenues. The sales and marketing, subscription acquisition costs line item includes advertising expenses and promotion-related expenses directly related to subscription acquisition activities, but does not include expenses related to advertising sales. We do not include third parties subscription gross additions, such as MSOs/Broadcasters' gross additions with TiVo subscriptions, in our calculation of SAC because we typically incur limited or no acquisition costs for these new subscriptions, and so we also do not include MSOs/Broadcasters' sales and marketing, subscription acquisition costs, hardware revenues, or cost of hardware revenues in our calculation of TiVo-Owned SAC. We are not aware of any uniform standards for calculating total acquisition costs or SAC and caution that our presentation may not be consistent with that of other companies.

                                                    Three Months
                                                    Ended July 31,
    TiVo-Owned Average Revenue per
     Subscription                                 2009          2008
    -------------------------------               ----          ----
                                             (In thousands, except ARPU)
    Total Service revenues                      $41,500       $48,174
    Less:  MSOs/Broadcasters-related service
     revenues                                    (4,315)       (5,781)
                                                 ------        ------
    TiVo-Owned-related service revenues          37,185        42,393
    Average TiVo-Owned revenues per month        12,395        14,131
    Average TiVo-Owned per month subscriptions    1,604         1,712
                                                  -----         -----
    TiVo-Owned ARPU per month                     $7.73         $8.25
                                                  =====         =====

                                                    Three Months
                                                    Ended July 31,
    MSOs/Broadcasters Average Revenue per
     Subscription                                 2009          2008
    --------------------------------------        ----          ----
                                              (In thousands, except ARPU)
    Total Service revenues                      $41,500       $48,174
    Less:  TiVo-Owned-related service revenues  (37,185)      (42,393)
                                                -------       -------
    MSOs/Broadcasters-related service revenues    4,315         5,781
    Average MSOs/Broadcasters revenues per
     month                                        1,438         1,927
    Average MSOs/Broadcasters per month
     subscriptions                                1,521         2,009
                                                  -----         -----
    MSOs/Broadcasters ARPU per month              $0.95         $0.96
                                                  =====         =====

Average Revenue Per Subscription or ARPU. Management reviews this metric, and believes it may be useful to investors, in order to evaluate the potential of our subscription base to generate revenues from a variety of sources, including subscription fees, advertising, and audience research measurement. ARPU does not include rebates, revenue share, and other payments to channel that reduce our GAAP revenues. As a result, you should not use ARPU as a substitute for measures of financial performance calculated in accordance with GAAP. Management believes it is useful to consider this metric excluding the costs associated with rebates, revenue share, and other payments to channel because of the discretionary and varying nature of these expenses and because management believes these expenses, which are included in hardware revenues, net, are more appropriately monitored as part of SAC. We are not aware of any uniform standards for calculating ARPU and caution that our presentation may not be consistent with that of other companies.

We calculate ARPU per month for TiVo-Owned subscriptions by subtracting MSOs/Broadcaster-related service revenues (which includes MSOs/Broadcasters' subscription service revenues and MSOs/Broadcasters'-related advertising revenues) from our total reported net service revenues and dividing the result by the number of months in the period. We then divide by Average TiVo-Owned subscriptions for the period, calculated as described above for churn rate. The above table shows this calculation.

We calculate ARPU per month for MSOs/Broadcasters' subscriptions by first subtracting TiVo-Owned-related service revenues (which includes TiVo-Owned subscription service revenues and TiVo-Owned related advertising revenues) from our total reported service revenues. Then we divide average revenues per month for MSOs/Broadcasters'-related service revenues by the average MSOs/Broadcasters' subscriptions for the period.


Investor Relations, Derrick Nueman, +1-408-519-9677,, or Media Relations, Krista Wierzbicki, +1-408-519-9438,, both of TiVo Inc.