They see it as a necessity. TiVo recently slashed spending on brand building and beefed up plans to raise cash from advertisers after it signed up just 63,000 new subscribers during the holidays. That was far short of the 90,000 some analysts expected. Its rival, ReplayTV, in November bailed out of the business of selling PVR boxes and services directly to consumers. Some now openly wonder whether the business model can survive.
Consumers are more than a little skeptical about the value they get for their money.
As a result, while broadband use will grow, it won't be a mass-market hit anytime soon. Jupiter expects about 28.8 million homes to have it in 2005, a big jump from today's 5.1 million but fewer than many expected. The Strategis Group much more optimistically anticipates nearly 36 million in 2005. For example, Cox Communications plans to offer VOD in just three of its cable systems in 2001. He's not the only one worried.