Rob Black's Tech Stock Report

Includes: GOOG, TIVO
by: Rob Black
TiVo (NASDAQ:TIVO) had been offering $150 mail-in-rebates on its Series2 DVRs for quite some time now. The company recently began offering $180 mail-in-rebate for the dual tuner Series2 DVR which reduced the price to $69 at most retailers, and a $220 rebate for the single tuner DVR, which reduced its price to zero.

At the same time, the company raised the price for 1 year subscription to $200 from $155, while keeping the price of the 2 and 3 year subscriptions constant at $300. By reducing the difference between the 1 year and 3 year prices, more TiVo subs are likely to take the 3-year plan. While that locks subs into longer period plans, the higher SAC (via higher rebates and more marketing spend) and lower ARPU (at $8.31 for the 3-year subs), IRRs likely are worse unless churn improves materially.

Google (NASDAQ:GOOG) once again posted impressive domestic market share statistics at 45.4% in October 06, a 30bps gain over September 06, according to comScore. Google grew search queries by 55% Year over Year in October 06, significantly ahead of the industry growth at 33% Year over Year, but marking a slight deceleration from 57% in September 2006. Google’s consistent market share gains while facing intense competition demonstrates its clear market leadership in online search. This is reflective of Google’s established strong brand, superior search relevancy, and solid execution against its business plan.