TiVo Unveils Low-Cost, High-Definition Recorder

TiVo(TIVO Quote) has introduced a cheaper version of its high-definition digital video recorder in a bid to broaden its subscriber base and get a stronger foothold in the fast-growing market for HDTV-related products.

TiVo said its latest 'TiVo HD' DVR has been priced at $299.99, much lower than its $800 Series 3 HD DVR model introduced last year. TiVO HD allows users to store 20 hours of high-definition content, compared with 32 hours in the more expensive model. TiVO HD was available for pre-orders in July.

"It's a defensive move to hold on to a customer base that is buying HDTVs but wants an affordable TiVo DVR," says Van Baker, vice president of media for Gartner's Industry Advisory Services.

Sales of high-definition televisions are booming as prices fall and the TVs get prominent play in retail channels. HDTV sets, which made up 21% of overall TV sales at the end of 2004, are expected to become 70% of all TV sales by the end of 2010, according to JupiterResearch. About 63% of U.S. TV households are expected to have an HDTV set by 2010.

Shares of TiVo were up 12 cents, or 1.9%, to $6.17 in recent trading. The company's stock is up 21% in the year to date.

TiVo has been locked in a fierce battle to hold on to its market share after cable and satellite operators introduced generic, lower priced versions of DVRs. Alviso, Calif.-based TiVo has fought back by making distribution deals with companies including cable provider Comcast(CMCSK Quote) to offer TiVo's DVR service to Comcast subscribers.

TiVo hopes to get its Comcast service rolling this summer.