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."
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Well i think its an understandable and fair agreement. If you are not using the device, you can at leaste wait untill the 12 months has past before you cancel.
ReplyDeleteI think it's steep and could affect if people will even decide to become a client! I sure wouldn't sign up knowing i'm stuck with them and if i decide to leave i have to pay $150... unless of course they have great prices and offer great service, so it can go both ways. Sappho
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