TiVo cuts DVR price to $50

If you've been waiting for prices to fall even further before buying a DVR, TiVo's price cuts may be right up your alley. The San Jose-based company announced plans to cut its cheapest DVR to just under $50, provided you sign up for a one-year subscription before January 15, 2006.

This new marketing initiative is part of TiVo's plan to differentiate itself in an increasingly crowded market, and comes just after TiVo's first-ever quarterly profit announcement. Unsurprisingly, this price cut will take TiVo back into the red; the company is projecting a $20-25 million dollar loss in Q3, with revenues in the $41-43 million dollar range. TiVo hopes to make up for its losses by gathering a larger subscriber base, but its an open question whether or not a $50 price cut will motivate enough consumers enough to meaningfully impact the company's subscriber levels long term.

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