TiVo Inc. (NASDAQ:TIVO) reported a very successful second quarter earnings on Tuesday, with a year-on-year revenue growth of 11.8% to $111.9 million, which was well above the estimates. They also launched their ‘Roamio’ DVR, which is expected to fill the gap left in the market by the online startup, Aereo.
Aereo was earlier recommended by the court to halt their operations for violating the broadcaster’s copyrights. The CEO of TiVo, Tom Rogers talked on Fox Business about the companies successful quarter and the ‘Roamio’ DVR.
“It was a great quarter for us. […] We did $350 million share buybacks. $100 million we are going to put to work between now and end of this year for us. So we have had a very balanced approach on the use of all the cash that we have gotten from our patent litigation wins. We think that will serve shareholders well,” Rogers said about the company’s performance in the quarter.
Rogers pointed out that the best way to watch the television is the cable. But Aereo explored the possibility of giving broadcast signals to consumers through DVR. But supreme court ruled them out stating the violation of broadcast copyrights. TiVo Inc. (NASDAQ:TIVO) has stepped in with their TiVo ‘Over The Air’ (OTA), which was a legal way to do the same thing as Aereo through the DVR. The main difference in the TiVo product is that it brings in services from Netflix, Hulu and Amazon and integrate that with the OTA channels.
Rogers said that they follow two methods to drive the TiVo Inc. (NASDAQ:TIVO)’s viewing experience. Firstly, he mentioned that they have become leaders in the advanced TV experience for cable operator. He pointed out that 18 out of 25 top cable operators in US uses TiVo products. Secondly, the tradition TiVo business of replacing the set top boxes with the TiVo products, which Rogers feels as an important business for the company.
He mentioned that TiVo lets the users go back to the shows, record and view them with ease, which might not be possible with any other services. Rogers thinks that the television business is at the best right now. He pointed out at improved quality of television shows and increased number of options for viewers including streaming services from companies like Netflix. He said that TiVo has made it easy for the user by bringing in all the possibilities together and let the user decide, what to watch. In addition, Rogers considers that TiVo gives more flexibility to the users.
One of the shareholders of TiVo Inc. (NASDAQ:TIVO) is Millennium Management, led by Israel Englander, which holds around 1.06 million company shares as of the end of the second quarter.