Tivo is Doomed

TiVo, the
granddaddy of digital video recorders, or DVRs, enjoys a cult following
noted for its evangelical fervor. There are few worse cocktail-party
quandaries than being sandwiched between a TiVo owner and the wall.
Should you ever find yourself in such a spot, prepare for a 45-minute
sermon on the glories of pausing live TV, fast-forwarding through the
ads, and watching King of the Hill reruns whenever you damn
well please, without having to worry about setting a VCR timer. The
devotee will even use TiVo as a verb, as in, "Why don't you come over
tomorrow night, 'cause I just TiVo'd three episodes of Crank Yankers."

But
off-the-charts customer satisfaction has yet to turn TiVo into a
rollicking success. The Alviso, Calif.-based company has burned through
$400 million since 1997 and has never once shown a profit. Losses are
narrowing as the subscription base inches toward 500,000, but the
future is still precarious. TiVo hopes to get in the black by January.
With only $26 million in cash reserves and a stock price well below the
$4 mark (down from a bubble-era high of $76), it can't wait much longer.

-- Slate