Tivo

11 Pages Posted: 21 Oct 2008

See all articles by Paul Farris

Paul Farris

University of Virginia - Darden School of Business

Phillip E. Pfeifer

University of Virginia - Darden School of Business

Craig Wiese

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Abstract

TiVo's valuation is questioned by stock analyst and the case challenges students to use concepts and applications of customer lifetime value to determine whether TiVo's current share prices are appropriate.

Excerpt

UVA-M-0694

TIVO

Introduction

On March 5, 2004, Michael Ramsay surveyed the 40 equity-research analysts gathered in his executive conference room in Alviso, California. As cofounder, chairman, and CEO of TiVo, Ramsay was excited about the opportunity presented by the company's first-ever analysts' conference. After a slow start, TiVo's subscriber base had grown rapidly in the past 12 months, and the stock market took notice. TiVo had closed at $ 11.46 the day before, which was 82% above the price it closed at the previous year (see Exhibit 1). As Ramsey thought about the company's products, financial performance, and future plans, he wondered what valuation the analysts would assign to his firm with the new information.

Firm Profile

TiVo, Inc. offered television services for digital video recorders (DVRs), a growing consumer-electronics category. Its subscription-based TiVo Service provided consumers with a way to record, watch, and control television. It also gave advertisers, content creators, and television networks a platform for promotions, content delivery, and audience research.

. . .

Keywords: media customer lifetime value valuation

Suggested Citation

Farris, Paul and Pfeifer, Phillip E. and Wiese, Craig, Tivo. Darden Case No. UVA-M-0694. Available at SSRN: https://ssrn.com/abstract=1280609

Paul Farris (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

Phillip E. Pfeifer

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4803 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/Pfeifer.htm

Craig Wiese

affiliation not provided to SSRN

No Address Available

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