Advertising - does TiVo break its promise?

In 2005 TiVo released the first series of advertising features to a random and limited number of subscribers to the digital-video recorder service. The first test feature--a tag--pops up on the screen when a viewer is fast-forwarding through an advertisement.

If viewers press the thumbs-up or select button during the half second the tag is displayed, they will be redirected to a menu that leads to more information about the advertised product. The tag takes up about 25 percent of the screen, according to the company. TiVo said it is working with only one advertiser, a movie studio, on the trial balloon.

TiVo has been developing interactive advertising technology for some time, and while advertising accounts for just a fraction of TiVo's overall revenue, it will most likely become more substantial. The interactive features would give advertisers information on consumer interest and, possibly, better access to couch potatoes.

Does that mean that TiVo doesn't live up to its promise anymore? I mean, if TiVo promises consumers control over their TV program - also in the sense that they can switch advertisement - then this latest move clearly goes contrarily to this promise.

TiVo is asking for a $150 cancellation fee!

As it turns out, TiVo will be charging a $150 fee for cancelling your service within a year of activating your unit. The company is willing to sell you hardware at a loss, but guarantee itself service revenue to recoup those expenses. Tivo’s definitely learning how to become profitable, but at what cost? New ads and fees like this will likely alienate a percentage of customers.
Tivo says: "WITH RESPECT TO ANY NEW TIVO SERVICE SUBSCRIPTION ACTIVATED ON OR AFTER SEPTEMBER 6, 2005, YOU AGREE TO SUBSCRIBE TO THE TIVO SERVICE FOR NO LESS THAN 12 MONTHS (THE “SERVICE COMMITMENT”). IF YOU FAIL TO MEET THE SERVICE COMMITMENT BY CANCELLING YOUR SUBSCRIPTION TO THE TIVO SERVICE (OR IF TIVO TERMINATES YOUR SUBSCRIPTION TO THE TIVO SERVICE DUE TO A BREACH OF THIS AGREEMENT), YOU AGREE THAT TIVO MAY CHARGE YOU A $150 EARLY TERMINATION FEE, AND YOU AGREE TO PAY ANY SUCH EARLY TERMINATION FEE."

Can't buy my love? Yes you can.

Check this out - never thought of it, but it is actually possible to quantify love and appreciation. And for myself the equation would look even better; I would put in all the stuff that he says and then put a price on the sweet, statisfying feeling of power and controll..hum..I would have to think about that..but it should at least be worth a couple of hundred bucks!

http://freakonomics.blogs.nytimes.com/2008/11/26/tivo-economics/

Control or what?

Sometimes I wonder...do we really need all of this? What is it that makes TiVo so attractive - is it the glories of pausing live TV, fast-forwarding through the ads, and watching House reruns whenever you damn well please, without having to worry about setting a VCR timer? Is it really that simple? Or is it just another form of control that our control-freaky socitety feels it needs so desperately? I mean, look at it like this; TiVo makes us the kings of TV-Universe. Not only does it give us some sort of social status to own just another gadget, it also provides a chance to beat the system! Yes, we do have the liberty to not watch commercials imposed on us, and yes, we feel we get a teeny-tiny bit more out of TV that actually fair. I at least always feel a shudder of excitement when I watch an episode of Prison Break that I actually missed and I get this feeling of "f*** off, I watch when I got the time, and when I'm ready!". So here we are...power and control - two pure and very human emotions. Or maybe it's just me - maybe I'm more of a control freak that anybody else. But what if not? Is that the way things are gonna work in the future? Being able to pause everything, rewind, and do when we're ready? Gosh, I just imagined tivoing my life! I fast forward through the commercial breaks - dinners with my in-laws or extensive talks with my boss - I rewind the shows I really like - sex last night maybe? - and I just get everthing when I want it, how I want it. Man, wouldn't that just be amazing?