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TiVo Reports Results for the Fourth Quarter and Fiscal Year Ended January 31, 2010

Company Release - 3/8/2010 4:02 PM ET

-- Adjusted EBITDA for the fourth quarter was a loss of ($3.2) million, beating guidance

-- Net loss for the fourth quarter was ($10.2) million, better than guidance

-- Launches TiVo Premiere DVR and new high-definition user interface, taking the advanced television experience to the next level

-- The United States Court of Appeals for the Federal Circuit rules in TiVo's favor; Paves the way for the Company to receive further damages in the future

-- RCN to launch TiVo in second quarter

-- TiVo partners with conditional access provider Conax to offer European multi-channel operators a fully comprehensive end-to-end solution

ALVISO, CA -- (MARKET WIRE) -- 03/08/10 -- TiVo Inc. (NASDAQ: TIVO), a creator and leader in advanced television services and digital video recorders (DVRs), today reported financial results for the fourth quarter and fiscal year ended January 31, 2010.

"This was a solid quarter and year for TiVo as we delivered our second straight full year of Adjusted EBITDA profitability," said Tom Rogers, President and CEO of TiVo. "We maintained a strong balance sheet, increased our cash and investments position by almost $40 million over the course of the year, and continued to effectively manage our spending across all areas of the Company. Furthermore, we made significant progress on our long-term growth initiatives across several key areas of our business and continued to fortify our position as a leader in the advanced television world. On the innovation front, we once again reinvented the content viewing experience when last week we unveiled our next-generation TiVo user interface which seamlessly converges broadband and high definition linear television with a whole new look and feel. The launch of this platform ushers in a new era for TiVo as we move way beyond a DVR company, solving for how consumers and content distributors deal with presenting infinite amounts of content now available when combining broadband and linear television, while also providing the necessary ingredients of a business model to sustain these new ways to consume television.

"In addition to our success in building products that are helping to shape the future of TV, we also continue to protect our innovation and intellectual property. In a major victory for TiVo on that front, just a few days ago the United States Court of Appeals for the Federal Circuit in Washington, D.C. fully affirmed the United States District Court for the Eastern District of Texas's finding of contempt of its permanent injunction against EchoStar, including both the disablement and infringement provisions, regarding EchoStar's on-going infringement of our Time Warp patent. This ruling paves the way for TiVo to collect the previously awarded approximately $300 million in damages and contempt sanctions for EchoStar's continued infringement through July 1st, 2009, bringing the total awards related to this case to date to about $400 million. We will seek additional compensation for continued infringement for the period after July 1st 2009 and will continue to protect our intellectual property from infringement. "

For the fourth quarter, service and technology revenues were $45.3 million, compared with $48.5 million for the same period last year and $47.1 million in the prior quarter. Adjusted EBITDA was ($3.2) million, compared to guidance of ($5) million to ($7) million, and $2.5 million in the same period a year ago. Increased research & development spend relating to new products and distribution was a significant driver in the year-over-year Adjusted EBITDA decline. TiVo reported a net loss of ($10.2) million for the fourth quarter, compared to guidance of a net loss of ($13) million to ($15) million, and a ($3.6) million net loss in the year-ago quarter. Net loss per share this quarter was ($0.09).

Rogers continued, "Last week we unveiled our new TiVo Premiere box, which reinvents the television viewing experience once again. TiVo Premiere includes our revolutionary user interface that will serve as the cornerstone of our retail and mass distribution platform offerings going forward. By marrying TV and the power of the Internet into a single solution, we believe it is the embodiment of the ultimate in-home entertainment experience and will change how people watch TV as much as our DVR invention did more than a decade ago. This new interface builds on our DVR tradition and puts us in an equally pioneering position with the integration of broadband coupled with a search functionality that makes the process of finding and discovering content on a high definition television as fun and enjoyable as watching the program. TiVo Premiere is your new cable box, it's your movie box, it's your web box; it's the one box that can give you access to virtually anything you want, whenever you want it.

"In creating this new experience, we used our vast knowledge gained over the last 10 years of how viewers want to watch television and, with an eye toward future innovation, we built this new platform on Adobe Flash, which gives us the flexibility to continually innovate and seamlessly integrate new applications and functionality. This forward-thinking will benefit both consumers and operators alike, as it opens up the path for TiVo to easily implement new applications, capabilities, and features down the line.

"Though we are initially launching our new platform through retail channels, we believe our TiVo Premiere box and new high definition user experience will advance our position with all kinds of distributors and will propel our importance as a developer of leading advanced television solutions. This is due in large part to the product's ability to converge both traditional and broadband content on the TV in a way that does not disintermediate the cable or satellite offerings like so many specialty devices on the market do today. At the end of the day, we believe that the technology represented by our TiVo Premiere box and our new high definition user interface will help operators remain relevant and ahead of the game, effectively eliminating the need for separate consumer electronic devices to access broadband content.

"To that end, our advanced television solution for RCN will be launching soon and as a result, RCN customers will have full access to a universal cable box, a vast collection of content from broadband sources, a significant VOD library, and a diverse music jukebox in one elegant design.

Peter Aquino, RCN's CEO, said, "We are proud to be leading the cable industry in the adoption of this groundbreaking approach to advanced television. TiVo will bring a whole new way for our subscribers to experience television with TiVo's DVR and broadband television offerings. I'm very pleased to report that based on our field test results, we will begin to roll out TiVo as our primary advanced box in all of our markets, one by one, in the second quarter of this year."

Rogers continued, "On a global basis, where operators' decisions about DVR deployment and broadband television are often being made in the same timeframe, TiVo finds itself in the unique position of being a company that can provide a full range of software and hardware solutions that meet the entirety of the needs of distributors."

The critical role TiVo is playing in solving for these issues globally is best described in a recent Financial Times article that quotes Neil Berkett, CEO of Virgin, as saying that he "wants Virgin's agreement with TiVo to allow it to offer a breadth of video content that rivals can't match, from 'traditional' or linear, television to YouTube clips." Mr. Berkett added, ''Building [the TiVo] application is the most important thing we do in 2010 going into 2011."

Rogers added, "Having such a committed and respected partner in Virgin as the exclusive distributor of TiVo services and technology in the United Kingdom is a testament to the TiVo value proposition and the critical role we can play in not just delivering advanced television solutions but, importantly, providing distributors with a viable business model in this new age of video consumption.

"On the heels of the Virgin deal, we are seeing an increasing amount of interest from international operators. In fact, earlier today we announced a relationship with Conax, a leading global provider of security/conditional access solutions for digital TV and content distribution to operators covering over 100 million households in over 80 countries. Many of the pay TV operators who utilize Conax's security systems are in the process of selecting next generation "hybrid" platforms that meld linear and broadband content -- and we believe our relationship with Conax puts TiVo in the pole position to be the software provider for those platforms. Through this deal, we will be working to optimize TiVo's software and service for use on Conax-enabled set top boxes which will make it faster and cheaper for operators to deploy our solution.

"Turning back to our U.S. efforts, a critical component of the launch of our new TiVo Premiere box and broader integration of our new platform is in our strategic alliance with Best Buy. The introduction of this product has been at the heart of the launch of the new Best Buy relationship and will be the basis of Best Buy commencing its substantially increased level of marketing and merchandising of TiVo products throughout its retail stores and online."

Rogers continued, "Updating our efforts with other key U.S. distributors, Cox continues to progress in its New England market and our aggressive development activities continue for both Comcast and DIRECTV.

Rogers concluded, "As we cap off another strong period of operational and financial progress for TiVo, we look at the year ahead with high expectations that the host of key growth drivers we have set in place with cable and satellite operators and our retail alliances will begin to bear fruit. We have once again radically redefined television viewing and we believe this will have a considerable impact on the future of both our retail and mass distribution businesses. We have continued to successfully protect our intellectual property with a major victory against EchoStar. As we enter a new decade, we are eager to embark on a new era for TiVo."

Management Provides Financial Guidance

For the first quarter of fiscal 2011, TiVo anticipates service and technology revenues in the range of $41 million to $43 million, a net loss in the range of ($19) million to ($21) million, and an Adjusted EBITDA loss in the range of ($9) million to ($11) million. The financial guidance reflects TiVo's expectations of increased litigation expense, higher research & development costs due to increased product development and distribution efforts, and higher marketing spend relating to the launch of TiVo Premiere.

This financial guidance is based on information available to management as of March 8, 2010. TiVo expressly disclaims any duty to update this guidance.

Management's guidance includes Adjusted EBITDA, a non-GAAP financial measure as defined in Regulation G. TiVo has provided a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) in the attached schedules solely for the purpose of complying with Regulation G and not as an indication that EBITDA or Adjusted EBITDA is a substitute measure for net income (loss).

Conference Call and Webcast

TiVo will host a conference call and Webcast to discuss the fourth quarter and fiscal year end financial and operating results and guidance outlook at 2:00 pm PT (5:00 pm ET), today, March 8, 2010. To listen to the discussion, please visit http://www.tivo.com/ir and click on the link provided for the Webcast or dial (877) 642-2076 (password is "TiVo"). The Webcast will be archived and available through March 15th, 2010 at http://www.tivo.com/ir or by calling (800) 642-1687 and entering the conference ID number 56800276.


About TiVo Inc.

Founded in 1997, TiVo Inc. (NASDAQ: TIVO) developed the first commercially available digital video recorder (DVR). TiVo offers the TiVo service and TiVo DVRs directly to consumers online at www.tivo.com and through third-party retailers. TiVo also distributes its technology and services through solutions tailored for cable, satellite, and broadcasting companies. Since its founding, TiVo has evolved into a premier single solution media center by combining its patented DVR technologies and universal cable box capabilities with the ability to aggregate, search, and deliver millions of pieces of broadband, cable, and broadcast content directly to the television. An economical, one-stop-shop for in-home entertainment, TiVo's intuitive functionality and ease of use puts viewers in control by enabling them to effortlessly navigate the best digital entertainment content available through one box, with one remote, and one user interface, delivering the most dynamic user experience on the market today. TiVo also continues to weave itself into the fabric of the media industry by providing interactive advertising solutions and audience research and measurement ratings services to the television industry.

TiVo and the TiVo Logo are trademarks or registered trademarks of TiVo Inc.'s subsidiaries worldwide. © 2010 TiVo Inc. All rights reserved

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, TiVo's future business and growth strategies including TiVo's mass distribution strategy and the timing of additional mass distribution deals both domestically and internationally, profitability and financial guidance, scope and timing of distribution of the TiVo service domestically with DIRECTV, Comcast, Cox , RCN and internationally the UK (with Virgin Media) and other regions, our new relationship with Conax, the results of TiVo's litigation with EchoStar including whether we may receive additional damages in the future, TiVo's future marketing spend and related activities, future marketing efforts by Best Buy, future TiVo products and services including the new TiVo Premiere box, and financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include delays in development, competitive service offerings and lack of market acceptance, as well as the other potential factors described under "Risk Factors" in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2009, Quarterly Reports on Form 10-Q since then, and Current Reports on Form 8-K. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. TiVo disclaims any obligation to update these forward-looking statements.

                                TIVO INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands, except per share and share amounts)
                               (unaudited)

                          Three Months Ended       Twelve Months Ended
                              January 31,               January 31,
                        ------------------------  ------------------------
                           2010         2009         2010         2009
                        -----------  -----------  -----------  -----------

Revenues
  Service revenues      $    38,442  $    44,115  $   159,772  $   188,408
  Technology revenues         6,821        4,353       29,907       20,126
  Hardware revenues          23,190       10,712       47,907       41,133
                        -----------  -----------  -----------  -----------
Net revenues                 68,453       59,180      237,586      249,667
Cost of revenues
  Cost of service
   revenues (1)              10,876       11,180       40,878       44,603
  Cost of technology
   revenues (1)               4,434        2,740       20,703       12,300
  Cost of hardware
   revenues                  27,962       15,764       65,909       57,742
                        -----------  -----------  -----------  -----------
 Total cost of revenues      43,272       29,684      127,490      114,645
                        -----------  -----------  -----------  -----------
     Gross margin            25,181       29,496      110,096      135,022
                        -----------  -----------  -----------  -----------
  Research and
   development (1)           18,245       15,459       63,039       62,083
  Sales and marketing (1)     6,385        6,517       23,270       24,944
  Sales and marketing,
   subscription
   acquisition costs          2,022        1,690        5,048        6,038
  General and
   administrative (1)        10,167       11,382       44,801       42,931
  Litigation proceeds             -            -            -      (87,811)
                        -----------  -----------  -----------  -----------
     Total operating
      expenses               36,819       35,048      136,158       48,185
                        -----------  -----------  -----------  -----------
     Income (loss) from
      operations            (11,638)      (5,552)     (26,062)      86,837

  Interest income,
   includes $16,789
   related to litigation
   proceeds in the
   twelve months ended
   January 31, 2009             426          423        1,039       18,636
  Interest expense and
   other                         (4)        (278)          83         (553)
                        -----------  -----------  -----------  -----------
     Income (loss)
      before income
      taxes                 (11,216)      (5,407)     (24,940)     104,920
     Benefit
      (provision) for
      income taxes            1,035        1,840        1,024       (1,328)
                        -----------  -----------  -----------  -----------
  Net income (loss)     $   (10,181) $    (3,567) $   (23,916) $   103,592
                        ===========  ===========  ===========  ===========
  Net income (loss)
   per common share
   - basic              $     (0.09) $     (0.04) $     (0.23) $      1.03
                        ===========  ===========  ===========  ===========
  Net income (loss)
   per common share
   - diluted            $     (0.09) $     (0.04) $     (0.23) $      1.01
                        ===========  ===========  ===========  ===========
  Weighted average
   common shares used
   to calculate basic
   net income (loss)
   per share            108,712,620  101,303,123  106,182,488  100,389,980
                        ===========  ===========  ===========  ===========
  Weighted average
   common shares used
   to calculate diluted
   net income (loss)
   per share            108,712,620  101,303,123  106,182,488  102,595,607
                        ===========  ===========  ===========  ===========

  (1) Includes stock-
      based compensation
      expense as follows:
        Cost of service
         revenues       $       266  $       229  $     1,098  $       903
        Cost of
         technology
         revenues               512          477        2,319        2,071
        Research and
         development          2,152        2,235        8,604        8,805
        Sales and
         marketing              668          557        2,567        2,089
        General and
         administrative       2,553        2,501       10,766        9,552




                                TIVO INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
           (In thousands, except per share and share amounts)
                               (unaudited)

                                               January 31,    January 31,
                                                  2010           2009
                                              -------------  -------------
                       ASSETS
CURRENT ASSETS
Cash and cash equivalents                     $      70,891  $     162,337
Short-term investments                              173,691         44,991
Accounts receivable, net of allowance for
 doubtful accounts of $409 and $770                  16,996         14,283
Inventories                                          12,110         13,027
Prepaid expenses and other, current                   7,287          4,896
                                              -------------  -------------
   Total current assets                             280,975        239,534
LONG-TERM ASSETS
Property and equipment, net                          10,098         10,285
Purchased technology, capitalized software,
 and intangible assets, net                           9,565         10,597
Prepaid expenses and other, long-term                 1,263          1,268
Long-term investments                                 7,512          3,944
                                              -------------  -------------
   Total long-term assets                            28,438         26,094
                                              -------------  -------------
       Total assets                           $     309,413  $     265,628
                                              =============  =============
         LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
   CURRENT LIABILITIES
   Accounts payable                           $      20,712  $       9,844
   Accrued liabilities                               24,786         25,054
   Deferred revenue, current                         38,952         47,560
                                              -------------  -------------
     Total current liabilities                       84,450         82,458
   LONG-TERM LIABILITIES
   Deferred revenue, long-term                       28,990         28,557
   Other long-term liabilities                          231            126
                                              -------------  -------------
     Total long-term liabilities                     29,221         28,683
                                              -------------  -------------
       Total liabilities                            113,671        111,141

  COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Preferred stock, par value $0.001:
    Authorized shares are 10,000,000;
    Issued and outstanding shares - none                  -              -
  Common stock, par value $0.001:
    Authorized shares are 275,000,000;
    Issued shares are 110,434,022 and
     103,604,015, respectively and
     outstanding shares are 109,869,062 and
     103,370,523, respectively                          110            104
  Additional paid-in capital                        896,695        829,273
  Accumulated deficit                              (696,112)      (672,196)
  Treasury stock, at cost - 564,960 shares
   and 233,492 shares, respectively                  (4,325)        (1,659)
  Accumulated other comprehensive loss                 (626)        (1,035)
                                              -------------  -------------
     Total stockholders' equity                     195,742        154,487
                                              -------------  -------------
     Total liabilities and stockholders'
      equity                                  $     309,413  $     265,628
                                              =============  =============




                                TIVO INC.
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (In thousands)
                               (unaudited)
                                                   Twelve Months Ended
                                                       January 31,
                                              ----------------------------
                                                   2010          2009
                                              -------------  -------------

CASH FLOWS FROM OPERATING ACTIVITIES
   Net income (loss)                          $     (23,916) $     103,592
   Adjustments to reconcile net income (loss)
    to net cash provided by (used in)
    operating activities:
      Depreciation and amortization of
       property and equipment and intangibles         9,160          9,783
      Stock-based compensation expense               25,354         23,420
      Inventory write-down                                -              -
      Utilization of trade credits                       90            638
      Allowance for doubtful accounts                    (7)           471
   Changes in assets and liabilities:
      Accounts receivable                            (2,706)         5,265
      Inventories                                       917          4,721
      Prepaid expenses and other                     (2,476)        (1,497)
      Accounts payable                               10,282        (14,623)
      Accrued liabilities                              (220)        (4,530)
      Deferred revenue                               (8,175)       (21,352)
      Deferred rent and other long-term
       liabilities                                      105           (183)
                                              -------------  -------------
        Net cash provided by operating
         activities                           $       8,408  $     105,705
                                              -------------  -------------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of short-term investments             (309,370)       (49,976)
   Sales or maturities of short-term
    investments                                     180,911         20,300
   Purchase of long-term investment                  (3,400)             -
   Acquisition of property and equipment             (5,324)        (4,549)
   Acquisition of capitalized software and
    intangibles                                      (2,031)          (319)
                                              -------------  -------------
        Net cash used in investing activities $    (139,214) $     (34,544)
                                              -------------  -------------
CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from issuance of common stock
    related to exercise of common stock
    options                                          37,958          9,240
   Proceeds from issuance of common stock
    related to employee stock purchase plan           4,116          3,963
   Treasury Stock - repurchase of stock for
    tax withholding                                  (2,666)          (813)
   Payment under capital lease obligation               (48)           (26)
                                              -------------  -------------
        Net cash provided by financing
         activities                           $      39,360  $      12,364
                                              -------------  -------------
NET INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS                                  $     (91,446) $      83,525
                                              -------------  -------------

CASH AND CASH EQUIVALENTS:
   Balance at beginning of period                   162,337         78,812
                                              -------------  -------------
   Balance at end of period                   $      70,891  $     162,337
                                              =============  =============




                                TIVO INC.
                               OTHER DATA
                                                               Guidance
                                                               Reconcil-
                                                                iation
                                                              Three Months
                      Three Months Ended  Twelve Months Ended    Ending
                          January 31,         January 31,     ------------
                      ------------------  ------------------    April 30,
                        2010      2009      2010      2009        2010
                      --------  --------  --------  --------  ------------
                        (In thousands)      (In thousands)    (In millions)

Net income (loss)     $(10,181) $ (3,567) $(23,916) $103,592  $(21) - $(19)
Add back:
  Depreciation &
   amortization          2,301     2,314     9,160     9,783     $2 - $3
  Interest income &
   expense                (426)     (418)   (1,039)  (18,583)    $0 - $(1)
  Provision for
   income tax           (1,035)   (1,840)   (1,024)    1,328       $0
                      --------  --------  --------  --------  ------------
    EBITDA              (9,341)   (3,511)  (16,819)   96,120  $(19) - $(17)
  Stock-based
   compensation          6,151     5,999    25,354    23,420       $8
                      --------  --------  --------  --------  ------------
    Adjusted  EBITDA  $ (3,190) $  2,488  $  8,535  $119,540  $(11) - $(9)

EBITDA and Adjusted EBITDA Results. TiVo's "EBITDA" means income before interest income and expense, provision for income taxes and depreciation and amortization. TiVo's "Adjusted EBITDA" is EBITDA less expense for stock-based compensation. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles, which we refer to as GAAP. We have presented EBITDA and Adjusted EBITDA solely as supplemental disclosure because we believe they allow for a more complete analysis of our results of operations and we believe that EBITDA and Adjusted EBITDA are useful to investors because EBITDA and Adjusted EBITDA are commonly used to analyze companies on the basis of operating performance. In addition, because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, we believe excluding stock-based compensation enhances the ability of management and investors evaluate our operating performance over multiple periods. Management does not use EBITDA or Adjusted EBITDA as a measure of liquidity because, among other things, they do not exclude the impact of deferred revenues associated with the amortization of product lifetime subscriptions. We do not use stock-based compensation expense in our internal measures. A limitation associated with these non-GAAP measures is that they do not include any stock-based compensation expense related to hiring, retaining, and incentivizing the Company's workforce. EBITDA and Adjusted EBITDA are not intended to represent, and should not be considered more meaningful than, or as an alternative to, measures of operating performance as determined in accordance with GAAP.

                                TIVO INC.
                               OTHER DATA

Subscriptions
                                    Three Months Ended  Twelve Months Ended
                                        January 31,         January 31,
                                    ------------------  ------------------
    (Subscriptions in thousands)      2010      2009      2010      2009
                                    --------  --------  --------  --------

TiVo-Owned Subscription Gross
 Additions                                46        59       148       187

Subscription Net Additions/(Losses):
TiVo-Owned                               (72)       (4)     (189)      (91)
MSOs/Broadcasters                        (59)     (121)     (541)     (520)
                                    --------  --------  --------  --------
   Total Subscription Net
    Additions/(Losses)                  (131)     (125)     (730)     (611)

Cumulative Subscriptions:
TiVo-Owned                             1,465     1,654     1,465     1,654
MSOs/Broadcasters                      1,140     1,681     1,140     1,681
                                    --------  --------  --------  --------
   Total Cumulative Subscriptions      2,605     3,335     2,605     3,335
% of TiVo-Owned Cumulative
 Subscriptions paying recurring
 fees                                     58%       59%       58%       59%

                                    ========  ========  ========  ========


Included in the 1,465,000 TiVo-Owned subscriptions are approximately
279,000 lifetime subscriptions that have reached the end of the period TiVo
uses to recognize lifetime subscription revenue. These lifetime
subscriptions no longer generate subscription revenue.

Subscriptions. Management reviews this metric, and believes it may be useful to investors, in order to evaluate our relative position in the marketplace and to forecast future potential service revenues. The TiVo-Owned lines refer to subscriptions sold directly or indirectly by TiVo to consumers who have TiVo-enabled DVRs and for which TiVo incurs acquisition costs. The MSOs/Broadcasters lines refer to subscriptions sold to consumers by MSOs/Broadcasters such as DIRECTV, Cablevision Mexico, Seven (Australia), and Comcast for which TiVo expects to incur little or no acquisition costs. Additionally, we provide a breakdown of the percent of TiVo-Owned subscriptions for which consumers pay recurring fees, including on a monthly and a prepaid one, two, or three year basis, as opposed to a one-time prepaid product lifetime fee.

We define a "subscription" as a contract referencing a TiVo-enabled DVR for which (i) a consumer has committed to pay for the TiVo service and (ii) service is not canceled. We count product lifetime subscriptions in our subscription base until both of the following conditions are met: (i) the period we use to recognize product lifetime subscription revenues ends; and (ii) the related DVR has not made contact to the TiVo service within the prior six month period. Product lifetime subscriptions past this period which have not called into the TiVo service for six months are not counted in this total. Effective November 1, 2008, we extended the period we use to recognize product lifetime subscription revenues from 54 months to 60 months for all product lifetime subscriptions acquired on or before October 31, 2007. We now amortize all product lifetime subscriptions over a 60 month period. We are not aware of any uniform standards for defining subscriptions and caution that our presentation may not be consistent with that of other companies. Additionally, the subscription fees that some of our MSOs/Broadcasters pay us may be based upon a specific contractual definition of a subscriber or subscription which may not be consistent with how we define a subscription for our reporting purposes.

                                TIVO INC.
                   OTHER DATA - KEY BUSINESS METRICS


                                    Three Months Ended  Twelve Months Ended
                                        January 31,         January 31,
                                    ------------------  ------------------
TiVo-Owned Churn Rate                 2010      2009      2010      2009
                                    --------  --------  --------  --------
                                          (In thousands, except churn
                                                 rate per month)

Average TiVo-Owned subscriptions       1,506     1,656     1,577     1,695
TiVo-Owned subscription cancellations   (118)      (63)     (337)     (278)
                                    --------  --------  --------  --------
TiVo-Owned Churn Rate per month         -2.6%     -1.3%     -1.8%     -1.4%
                                    --------  --------  --------  --------

TiVo-Owned Churn Rate per Month. Management reviews this metric, and believes it may be useful to investors, in order to evaluate our ability to retain existing TiVo-Owned subscriptions (including both monthly and product lifetime subscriptions) by providing services that are competitive in the market. Management believes factors such as service enhancements, service commitments, higher customer satisfaction, and improved customer support may improve this metric. Conversely, management believes factors such as increased competition, lack of competitive service features such as high definition television recording capabilities in our lowest cost product offerings, current economic conditions, and increased price sensitivity may cause our TiVo-Owned Churn Rate per month to increase.

We define the TiVo-Owned Churn Rate per month as the total TiVo-Owned subscription cancellations in the period divided by the Average TiVo-Owned subscriptions for the period (including both monthly and product lifetime subscriptions), which then is divided by the number of months in the period. We calculate Average TiVo-Owned subscriptions for the period by adding the average TiVo-Owned subscriptions for each month and dividing by the number of months in the period. We calculate the average TiVo-Owned subscriptions for each month by adding the beginning and ending subscriptions for the month and dividing by two. We are not aware of any uniform standards for calculating churn and caution that our presentation may not be consistent with that of other companies.

                              Three Months Ended     Twelve Months Ended
                                  January 31,             January 31,
                            ----------------------  ----------------------
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
Subscription Acquisition              (In thousands, except SAC)
 Costs


Sales and marketing,
 subscription acquisition
 costs                      $    2,022  $    1,690  $    5,048       6,038
Hardware revenues              (23,190)    (10,712)    (47,907)    (41,133)
Less: MSOs/Broadcasters-
 related hardware revenues      12,818         362      14,497       9,333
Cost of hardware revenues       27,962      15,764      65,909      57,742
Less: MSOs/Broadcasters-
 related cost of hardware
 revenues                      (12,064)       (385)    (13,706)     (8,590)
                            ----------  ----------  ----------  ----------

    Total Acquisition Costs      7,548       6,719      23,841      23,390
                            ==========  ==========  ==========  ==========

    TiVo-Owned Subscription
     Gross Additions                46          59         148         187

    Subscription Acquisition
     Costs (SAC)            $      164  $      114  $      161  $      125
                            ==========  ==========  ==========  ==========

Subscription Acquisition Cost or SAC. Management reviews this metric, and believes it may be useful to investors, in order to evaluate trends in the efficiency of our marketing programs and subscription acquisition strategies. We define SAC as our total TiVo-Owned acquisition costs for a given period divided by TiVo-Owned subscription gross additions for the same period. We define total acquisition costs as sales and marketing, subscription acquisition costs less net TiVo-Owned related hardware revenues (defined as TiVo-Owned related gross hardware revenues less rebates, revenue share and market development funds paid to retailers) plus TiVo-Owned related cost of hardware revenues. The sales and marketing, subscription acquisition costs line item includes advertising expenses and promotion-related expenses directly related to subscription acquisition activities, but does not include expenses related to advertising sales. We do not include third parties subscription gross additions, such as MSOs/Broadcasters' gross additions with TiVo subscriptions, in our calculation of SAC because we typically incur limited or no acquisition costs for these new subscriptions, and so we also do not include MSOs/Broadcasters' sales and marketing, subscription acquisition costs, hardware revenues, or cost of hardware revenues in our calculation of TiVo-Owned SAC. We are not aware of any uniform standards for calculating total acquisition costs or SAC and caution that our presentation may not be consistent with that of other companies.

                              Three Months Ended     Twelve Months Ended
                                  January 31,             January 31,
TiVo-Owned Average Revenue  ----------------------  ----------------------
 per Subscription              2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
                                     (In thousands, except ARPU)

Total Service revenues      $   38,442  $   44,115  $  159,772  $  188,408
Less: MSOs/Broadcasters-
 related service revenues       (4,190)     (5,137)    (14,932)    (22,412)
                            ----------  ----------  ----------  ----------
TiVo-Owned-related service
 revenues                       34,252      38,978     144,840     165,996
Average TiVo-Owned revenues
 per month                      11,417      12,993      12,070      13,833
Average TiVo-Owned per
 month subscriptions             1,506       1,656       1,577       1,695
                            ----------  ----------  ----------  ----------
TiVo-Owned ARPU per month   $     7.58  $     7.85  $     7.65  $     8.16
                            ==========  ==========  ==========  ==========



                              Three Months Ended     Twelve Months Ended
                                  January 31,             January 31,
MSOs/Broadcasters Average   ----------------------  ----------------------
 Revenue per Subscription      2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
                                     (In thousands, except ARPU)

Total Service revenues      $   38,442  $   44,115  $  159,772  $  188,408
Less:  TiVo-Owned-related
 service revenues              (34,252)    (38,978)   (144,840)   (165,996)
                            ----------  ----------  ----------  ----------
MSOs/Broadcasters-related
 service revenues                4,190       5,137      14,932      22,412
Average MSOs/Broadcasters
 revenues per month              1,397       1,712       1,244       1,868
Average MSOs/Broadcasters
 per month subscriptions         1,165       1,743       1,422       1,939
                            ----------  ----------  ----------  ----------
MSOs/Broadcasters ARPU
 per month                  $     1.20  $     0.98  $     0.88  $     0.96
                            ==========  ==========  ==========  ==========

Average Revenue Per Subscription or ARPU. Management reviews this metric, and believes it may be useful to investors, in order to evaluate the potential of our subscription base to generate revenues from a variety of sources, including subscription fees, advertising, and audience research measurement. ARPU does not include rebates, revenue share, and other payments to channel that reduce our GAAP revenues. As a result, you should not use ARPU as a substitute for measures of financial performance calculated in accordance with GAAP. Management believes it is useful to consider this metric excluding the costs associated with rebates, revenue share, and other payments to channel because of the discretionary and varying nature of these expenses and because management believes these expenses, which are included in hardware revenues, net, are more appropriately monitored as part of SAC. We are not aware of any uniform standards for calculating ARPU and caution that our presentation may not be consistent with that of other companies.

We calculate ARPU per month for TiVo-Owned subscriptions by subtracting MSOs/Broadcaster-related service revenues (which includes MSOs/Broadcasters' subscription service revenues and MSOs/Broadcasters'-related advertising revenues) from our total reported net service revenues and dividing the result by the number of months in the period. We then divide by Average TiVo-Owned subscriptions for the period, calculated as described above for churn rate. The above table shows this calculation.

We calculate ARPU per month for MSOs/Broadcasters' subscriptions by first subtracting TiVo-Owned-related service revenues (which includes TiVo-Owned subscription service revenues and TiVo-Owned related advertising revenues) from our total reported service revenues. Then we divide average revenues per month for MSOs/Broadcasters'-related service revenues by the average MSOs/Broadcasters' subscriptions for the period.