TiVo CEO Talks New Stream 4K Device

January 15, 2020

Dave Shull, CEO of TiVo, discusses the company's place in the streaming wars as it gears up for the new TiVo Stream 4K device.

FULL TRANSCRIPT

Jill Wagner: All right. Well, in other news,

Jill Wagner: new technology and services are

Jill Wagner: flooding the streaming war.

Jill Wagner: So it's leaving many companies with a challenge of how to

Jill Wagner: stand out in this crowded space.

Jill Wagner: And amid the competition,

Jill Wagner: TiVo is preparing to launch its Stream 4K device.

Jill Wagner: And joining us now is Dave Shull, CEO of TiVo.

Jill Wagner: Um, Dave, it's good to have you with us.

Jill Wagner: How is this gonna compete with Roku and Amazon's Fire TV?

Dave Shull: Uh, good morning. It's a thrill to be with you as well.

Dave Shull: Uh, this was a exciting news that we had last week in

Dave Shull: the Consumer- Consumer Electronics Show

Dave Shull: where we announced TiVo Stream 4K.

Dave Shull: And what's unique about TiVo Stream 4K is,

Dave Shull: it's all about the shows.

Dave Shull: People don't wanna go from app to

Dave Shull: app to app to figure out,

Dave Shull: try remember, where is that show, where I'm gonna watch?

Dave Shull: People want the shows in front of them.

Dave Shull: I wanna watch Succession,

Dave Shull: or I wanna watch Orange is the New Black,

Dave Shull: or I wanna watch the Patriot.

Dave Shull: And so, people are thinking about TV in the form

Dave Shull: of shows, not apps.

Dave Shull: Most of the competition that's out there right now,

Dave Shull: [NOISE] they force you to go from app to app to app.

Dave Shull: We think TiVo has

Dave Shull: an amazing history where we

Dave Shull: can all bring all this entertainment

Dave Shull: together in one place,

Dave Shull: and make it really easy to find, watch, and enjoy.

JIm Stenovec: So Dave, how are you able to do this when these are

JIm Stenovec: disparate services that do have subscriptions and,

JIm Stenovec: uh, some of them, uh, that

JIm Stenovec: not everybody subscribes to, of course.

Dave Shull: Well, so part of it is,

Dave Shull: we have an amazing partnership with Sling TV.

Dave Shull: So for all of your live TV,

Dave Shull: we've done a very, very tight integration with Sling TV.

Dave Shull: So all of your channels can be integrated on

Dave Shull: a show-by-show basis for live TV.

Dave Shull: But then we also have

Dave Shull: very strong partnerships with Netflix,

Dave Shull: and Prime, and Hulu,

Dave Shull: where we're able to use our very,

Dave Shull: very rich metadata, and deep link directly into the apps,

Dave Shull: into the shows that you wanna

Dave Shull: watch from those amazing providers.

Dave Shull: And then finally, we've added 49 different channels of

Dave Shull: all the digital first content and broad

Dave Shull: that all on-air into one single interface.

Dave Shull: And there's- there's decades of

Dave Shull: experience where we have content recommendation engines,

Dave Shull: we have metadata, we have

Dave Shull: knowledge graphs that really

Dave Shull: kind of pull us together and make it very,

Dave Shull: very seamless to the consumer.

Jill Wagner: [NOISE] And Dave, the stock's down two percent today.

Jill Wagner: What are investors getting wrong?

Dave Shull: Well, we've also announced a deal with Xperi where

Dave Shull: we're gonna combine TiVo with Xperi as a merger.

Dave Shull: And we're excited about that.

Dave Shull: Because we think that, this for a TiVo stream

Dave Shull: into the streaming wars is an amazing consumer product.

Dave Shull: What Xperi brings to the table is,

Dave Shull: they have technology that's now embedded in

Dave Shull: 100 million TVs every single year.

Dave Shull: So imagine what we can do with

Dave Shull: that amazing entertainment discovery option

Dave Shull: from TiVo on top of the Xperi base of embedded devices.

Dave Shull: Further, imagine if we take all of our audio know how.

Dave Shull: So Ti- TiVo powers metadata for eight of

Dave Shull: the top 10 music streaming services

Dave Shull: like Spotify and TIDAL.

Dave Shull: So imagine, if we could take the

Dave Shull: same content discovery experience

Dave Shull: and bring it to automobile's.

Dave Shull: Xperi owns HD Radio,

Dave Shull: they own the DTS audio codec brand.

Dave Shull: There's just a ton of stuff we can do both in the home,

Dave Shull: but then and also the aut- auto space.

Dave Shull: And so I think, it's sort of making sure

Dave Shull: investors understand that story,

Dave Shull: and understand the upside from this combination.

JIm Stenovec: Well, there's also a, uh, story that

JIm Stenovec: consumers have to understand, Dave,

JIm Stenovec: and- and that's that- the TiVo is not

JIm Stenovec: the DVR company it once was.

Dave Shull: Right.

JIm Stenovec: How do you explain to consumers

JIm Stenovec: the transformation that's happening in TiVo,

JIm Stenovec: and, uh, really get them to understand that

JIm Stenovec: the TiVo of today is not the TiVo of 10-15 years ago?

Dave Shull: So I- I came in

Dave Shull: seven months ago and saw this amazing heritage

Dave Shull: of this company where- where we did

Dave Shull: revolutionize the way people watch TV with the DVR.

Dave Shull: But- but my mandate to the team was, "You know, what?

Dave Shull: We're not using the word DVR anymore.

Dave Shull: We're not using the word guide anymore.

Dave Shull: We are a company that yes,

Dave Shull: we have amazing technology,

Dave Shull: and amazing ability, and some very,

Dave Shull: very loyal customers in that space.

Dave Shull: But we're all in on the streaming wars."

Dave Shull: And so I think- I think, say,

Dave Shull: TiVo can once again revolutionize the way you watch TV,

Dave Shull: the same way we did 20 years ago.

Dave Shull: But in a world that is so

Dave Shull: different from a streaming war point of view.

Dave Shull: I think, that's the message that I really want to convey,

Dave Shull: which is this, this new TiVo,

Dave Shull: it's just as innovative as ever but we're very,

Dave Shull: very relevant now for the streaming wars,

Dave Shull: not necessarily the older world.

Jill Wagner: Is the demographic, the

Jill Wagner: customer-base that you're trying to gather,

Jill Wagner: Dave, different from your competitors?

Dave Shull: Well, I think- I think we have

Dave Shull: an amazing opportunity here,

Dave Shull: because we do power

Dave Shull: more than 20 million households around the world in very,

Dave Shull: very tight partnership with cable companies.

Dave Shull: And so the odds are that if you have

Dave Shull: a cable company that's a little

Dave Shull: smaller than some of the biggest players,

Dave Shull: that you're probably actually using TiVo technology

Dave Shull: already and you may not realize that.

Dave Shull: And so those partnerships allow us to take

Dave Shull: a TiVo Stream product and say, "You know what?

Dave Shull: There are a ton, there are tens of millions of

Dave Shull: households out there that are broadband only."

Dave Shull: So they're getting technology from their cable company,

Dave Shull: but they don't really have a good video service.

Dave Shull: And so how do we provide them

Dave Shull: a video service that sits on

Dave Shull: top of the broadband connection

Dave Shull: that they have with their cable companies?

Dave Shull: And I think that's a home run for the cable companies.

Dave Shull: It's obviously a home run for us.

Dave Shull: But from a consumer point of view,

Dave Shull: it's more integrated, it's more exciting,

Dave Shull: and it comes from your cable company,

Dave Shull: but in a way that's very seamless,

Dave Shull: and is very appropriate for the streaming age.

Jim Stenovec: All right. Dave, how does this streaming wars play out?

Jim Stenovec: What does this look like a couple of years from now?

Jim Stenovec: I mean, we've got Disney Plus, we've got Netflix,

Jim Stenovec: we've got Hulu, we've got Peacock,

Jim Stenovec: we've got Quibi coming.

Jim Stenovec: [NOISE] I mean, that's just a handful

Jim Stenovec: [LAUGHTER] of the- of the companies

Jim Stenovec: that are offering this direct consumer streaming content.

Jim Stenovec: What does it- how does this shake out?

Jim Stenovec: Who's the- who are the winners or losers?

Dave Shull: You know, it's interesting. So in 2016,

Dave Shull: our research indicated that on average,

Dave Shull: people had four of the different services,

Dave Shull: whether it's on their phone or their

Dave Shull: iPhone or the Roku device, whatever else.

Dave Shull: Nowadays, in 2019, we're showing that

Dave Shull: they have seven different services out there.

Dave Shull: So from 2016-2019,

Dave Shull: we've already almost doubled

Dave Shull: the number of streaming services.

Dave Shull: I think personally, over the next couple of years,

Dave Shull: that number probably goes up closer to 10.

Dave Shull: And then candidly, over time,

Dave Shull: it will consolidate back down.

Jim Stenovec: Mm-hmm.

Dave Shull: And there will be a few winners in this market.

Dave Shull: But what that drives- what's interesting is,

Dave Shull: the other stat that's tied to that is on average,

Dave Shull: people are spending 11 minutes every time

Dave Shull: they turn on the TV trying to figure out what to watch.

Jill Wagner: Mm-hmm.

Dave Shull: That.

Dave Shull: If you're watching a half an hour show that 11 minutes

Dave Shull: wasted trying to find what you

Dave Shull: wanna watch tonight, that- that's terrible.

Dave Shull: And so we've got to get that down

Dave Shull: to 30 seconds and really-

Jill Wagner: Yeah.

Dave Shull: -kind of transform the way

Dave Shull: people can navigate this content.

Jill Wagner: I agree. That is the worst part.

Jill Wagner: Um, Dave, you said [NOISE] the price of this is 70 bucks.

Jill Wagner: That is more expensive than

Jill Wagner: the $50 option that you get with Roku.

Jill Wagner: How do you come to that $70 price point?

Dave Shull: Well, that's the MSRP, $69.99.

Dave Shull: We are launching what we announced is that we're

Dave Shull: actually launching at $49.99.

Dave Shull: Uh, very candidly, I want to make

Dave Shull: sure we have the pricing flexibility.

Dave Shull: I do think the right launch price is $49.99,

Dave Shull: which is what we announced at CES, and,

Dave Shull: and we'll see how we- how we discount this over time.

Jim Stenovec: [NOISE] Dave Shull, CEO of TiVo.

Jim Stenovec: Thanks so much for joining

Jim Stenovec: us on Cheddar today. We appreciate it.

Dave Shull: My pleasure. Thank you.