After years of ad-free service, TiVo announced that it will be playing pre-roll ads before showing content that users recorded.
The new feature is currently being tested by the company, but it's expected to roll out within the next three months.
TiVo Soon To Be Ad-Supported
According to a report from Light Reading, the upcoming pre-roll ads will create a new revenue stream for TiVo and help subsidize what the company is spending on retail hardware.
"DVR advertising is going to be a permanent part of the service," a representative from TiVo confirmed in an email to Light Reading, revealing that the company expects to roll out to all eligible devices within 90 days.
TiVo users can still choose to skip the ads just like they can skip commercials in their pre-recorded shows.
"We're dedicated to innovation that helps our customers stay in control of how, when, and what they watch," the spokesperson explained, pointing out that advertising as a significant part of the media business. "We have designed our new DVR advertising units with the ability to 'skip' ads anytime a customer hits 'skip.'"
The ability to skip ads is supposed to be an attempt to give users the best experience possible, but it didn't prevent customers from being unhappy at the direction TiVo is taking. A number of clients have expressed their dismay at the development on official online platforms of the company.
TiVo devices that are expected to get the pre-roll ads first include Roamio, Bolt, and Vox, as well as the next-gen device TiVo Edge.
It hasn't been confirmed whether the ad feature will extend to their services offered through cable operators. However, gadget blogger Dave Zatz, who shared the news about a new TiVo Plus, predicted that TiVo will eventually go in this direction.
TiVo Develops TiVo Plus Struggles In Competitive Industry
According to a report from CNN, TiVo is working on making itself a two-pronged company with a patents business and a products business. In line with this, it is releasing two new offerings: an AI-powered content recommendation service known as TiVo Plus that will be free to current TiVo owners and a $50 Android-run dongle that's the cheapest Tivo device yet.
The former, TiVo Plus, will feature video services from Netflix, Amazon Prime, Hulu, YouTube, and a few others, but more are expected to come on board.
Both are expected to boost TiVo's client base, although CNN noted that it's bound to be a big challenge to do so. At the company's peak in 2000, it had a value of $100 per share. Now, it's only about $8 per share, a sharp drop from its impressive heyday.
David Yoffie, a Harvard Business School professor who used to be a TiVo board member, told CNN that he believes TiVo needs to make significant changes to compete in the current market.
"[They have to figure out] how to get the cost down to be able to deliver a price-competitive product that will compete effectively against Roku and Apple TV," Yoffie said, adding that it's sure to be a big step away from what TiVo is today.
