Yankee Group Forecasts the End of TiVo.

Standalone DVR Sheds Subscribers While Service Providers Discover New Market Differentiation

BOSTON -- Yankee Group today announced that the standalone DVR product category will cease to exist by 2010, and its dissolution will result in the end of TiVo as we know it. Even as DVR growth accelerates, TiVo will struggle to remain relevant in the market. As TiVo begins to shed subscribers during the forecast period, service providers will continue to capitalize on the emerging technology and no entry cost hardware to incrementally up-sell subscribers to new services and enable the era of Advertising 2.0.

According to the Yankee Group Report, Technology on Fast Forward: 2006 to 2011 US DVR Forecast, published today, the Advertising 2.0 opportunities for the future of DVR technology include time relevant advertising, location relevant advertising, ad telescoping, product placement and interactive advertisements. These new advertising opportunities allow service providers to share in advertising revenue they failed to capture in the past and differentiate their position in the marketplace.

"The five year outlook for the DVR in the home is one of unmitigated growth and opportunity. As new technology emerges, it is important that advertisers, service providers and broadcasters remember that taking away the Anywhere Consumer's ability to skip commercials is not an option," said Joshua Martin, Yankee Group, Consumer analyst. "The answer lies in innovation and evolution to reach the mass and niche markets moving forward because the era of the 30-second spot is fading away for all age groups and demographics."

During the forecast period, DVRs will become commoditized, resulting in the end of TiVo. However, according to Martin, "TiVo has incredible brand value that resonates with customers and it will be an asset to any service provider, increasing the likelihood of an acquisition."

NOTE TO EDITORS

For interviews contact:

* Christina Oh, Yankee Group public relations, 617-880-0238, [e-mail]

* Joshua Martin, Yankee Group Consumer analyst, 617-880-0275, [e-mail]

YANKEE GROUP (www.yankeegroup.com)

The people of Yankee Group are the global connectivity experts[TM]--the leading source of insight and counsel for builders, operators and users of connectivity solutions. For more than 35 years, Yankee Group has conducted primary research that charts the pace of technology change and its effect on networks, consumers and enterprises. Headquartered in Boston, Yankee Group has a global presence including operations in North America, Europe, the Middle East, Africa, Latin America and Asia-Pacific.