Kiwi viewers shun TiVo

Fewer than 2000 TiVo units have sold. Photo / Supplied

Much-hyped digital recording device TiVo has had a disastrous launch, despite a $10 million dollar investment by Television New Zealand.

Multiple industry sources estimated there had been fewer than 2000 sales since the product was launched by Hybrid Television Services on November 6.

Hybrid said at the time it hoped to sell 120,000 boxes within five years.

A spokeswoman called the 2000 figure "completely inaccurate", but said the company had a policy of not disclosing sales numbers and would not comment further.

TiVo boxes are sold exclusively through Telecom stores.

Telecom's retail chief executive Alan Gourdie said on February 12 that sales had been modest.

"We set some quite high targets for Christmas that we didn't deliver."

But Telecom spokeswoman Julia Bell said Telecom was comfortable with TiVo and sales figures were not a concern. "We're pretty happy with the numbers, and we really like the relationship we've got with Hybrid."

The slow uptake of TiVo will have consequences for taxpayers because TVNZ paid $10 million last year for its stake in Hybrid. A TVNZ spokeswoman said the state-owned broadcaster was happy with the decision to buy into the company. "We have no concerns, and are completely comfortable with the investment."

A spokesman for broadcasting minister Jonathan Coleman said he had no comment on the TiVo investment.

"This is an operational matter, he doesn't comment on operational matters."

TiVo is going head to head with Sky's My Sky recorder. Both let viewers record shows on two channels while watching a third, with the biggest difference being the cost.

My Sky prices vary depending on your set-up. You can pay $99 for the decoder, then an additional $25 a month for the My Sky HDi unit and to view certain channels in high definition.

To avoid higher monthly fees, Sky offers a one-off payment of $599 for the decoder, plus the $10 monthly charge.

The TiVo decoder, which downloads through an active Telecom broadband connection, comes at a one-off payment of $200 plus $30 a month for two years. After that, there are no more monthly costs.

A launch special, running until March 24, promises about $200 worth of free TiVo appliances, including a remote, wireless adaptor and home networking package.

Technology commentator Peter Griffin has an office opposite a Telecom store and said staff were struggling to shift the boxes.

"There's a guy standing there all day, trying to drag everyone who comes through the door over to a pile of TiVos," he said. "And no one's interested because they're there to buy mobile phones. It's pretty sad."

He said there was a thriving resale market for digital recorders and TiVo's low presence on Trade Me was "pretty telling".

There were only four boxes listed on Friday and no bids on any of the auctions.

Sellers of the boxes, which sold for $920 when the service launched, have set "buy now" prices as low as $550.

"That shows the uptake has been incredibly poor," said Griffin.