TiVo, which is now part of Xperi, said that its recent Stream 4K connected TV device is selling faster than any of the company’s previous hardware releases.
The Stream 4K launched in May with an introductory price of $49.99, a smaller version of TiVo’s “peanut” voice remote, support for Dolby Atmos sound and Dolby Vision HDR, and a unified platform for searching, discovering and accessing content from live television, streaming services and recordings.
During this week’s earnings call, Xperi CEO Jon Kirshner said the retail launch for Stream 4K is just the first part of a three-phrase growth plan for the Stream platform. He said the second phase of this footprint expansion will come from the launch of Stream as an embedded search and discovery application for smart TVs, which the company expects to be in products by late 2021 or early 2022. The third phase will position Stream as a smart TV platform connecting content from all sources and with TiVo’s search and discovery and monetization tools.
“This is one of the merger-related revenue synergies we are most excited about as we unite the TiVo Stream product with Xperi's very strong OEM relationships and TV footprint,” said Kirshner, according to a Seeking Alpha transcript.
The Stream 4K is part of Xperi’s Consumer Experience business segment, which the company said represents approximately 40% to 45% total combined company product revenue. The company said TiVo’s pay TV business segment – which includes classic guides, TiVo DVR and its end-to-end platform for IPTV cloud service – also represents 40% to 45% of the company’s total product revenue.
Xperi said that 12 pay TV providers are now using TiVo’s platform and that churn levels for customers on that platform were lower than pay TV industry averages. Kirshner said he expects TiVo’s pay TV business to remain an important contributor to overall revenue but said it will experience a “modest slow decline in the near to mid-term.”