TiVo continues to be the technology provider of choice for small and mid-sized cable operators looking to provide customers with modern video operating systems. The San Jose, Calif.-based DVR maker and video interface programmer announced the addition of 284,000 more pay-TV subscribers in the second quarter, upping its revenue from servicing MSO customers by 48 percent.
"Our relationships with operator partners continue to strengthen and contribute to our strong financial results," said TiVo President and CEO Tom Rogers. "We posted accelerating year-over-year MSO service revenue growth and MSO subscriptions now stand at more than five million, an increase of 32 percent over last year."
With "TiVo-owned" subscriptions -- those served through boxes sold at retail -- also spiking by 37,000, TiVo saw its total subscriber base increase by 26 percent year over year in the quarter to over 6 million.
TiVo's total revenue rose by 7 percent to $119.5 million. Net income fell to $8.3 million in the second quarter from $9.3 million a year earlier.
Concurrent with the announcement of its earnings, TiVo also said that it has reached a deal to provide its DVRs and interfaces to more than 850 smaller cable operators that negotiate deals through the framework of the National Cable Television Cooperative (NCTC).
"Collaborating with TiVo gives NCTC members access to an advanced TV offering with best-in-class multiscreen capabilities, OTT integration, and a personalized user experience," said Rich Fickle, the NCTC's president and CEO. "To help drive scale efficiencies, NCTC is investing in a common back office integration platform that will connect with multiple billing systems as well as TV Everywhere authentication platforms. This is a key enabler of the TiVo deal and could also support future IP video and OTT solutions."
TiVo also said that it has filed a patent infringement lawsuit against Samsung, a leading manufacturer of DVRs for the pay-TV industry. TiVo alleges that Samsung is improperly using TiVo-patented processes that enable viewers to watch a show and record another.
Past lawsuits by TiVo against Google (NASDAQ: GOOG), Cisco, Time Warner Cable (NYSE: TWC), AT&T (NYSE: T), Verizon (NYSE: VZ) and Dish Network (NASDAQ: DISH) have produced settlements.
Rogers told Deadline Hollywood the Samsung suit is "significant" because it not only covers DVRs sold to pay-TV operators, but also pertains to technical processes used in mobile devices.
For more:
- read this TiVo earnings release
- read this TiVo press release
- read this Reuters story
- read this Seeking Alpha transcript
- read this Deadline Hollywood story
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