Effective March 3rd, Tivo will increase its lifetime subscription fee for new Tivo units from $249 to $299 US. This fee has previously increased from $199 to $249. Tivo made no additional announcements regarding its monthly subscription fee for Tivo subscribers, and they will continue to pay $12.95 per month. Tivo subscribers can opt for a monthly subscription fee or pay the one-time lifetime subscription fee, which covers a Tivo unit during its life of use. The announcement is reported to not apply to DirecTivo subscribers who use Tivo with DirecTV.
Many believe that Tivo is raising its lifetime subscription fee in order to persuade users to eventually move to the monthly payment plan, rather than pay the one-time subscription fee. Tivo also continues to try to grow its licensing business revenue. The company currently has deals with both Sony and Toshiba, but fees from these companies so far only amount to a mere blip on Tivo's revenue radar screen.