TiVo, although having robust revenue model today, really needs to look into future trends. Media is beginning to change to an on-demand service whereby a schedule for television content no longer exists. In the past, TiVo has sold millions by closing this gap in the form of a hardware + subscription service by letting viewers record shows.
In the future, there will be on-demand content whereby the user no longer needs to wait for a show to be aired on its scheduled time or program his/her TiVo to record the show. He/she will be able to turn on the television and pick available shows from a database.
Time Warner has just announced a press release for a joint venture with Verizon to accomplish this via Verizon’s FiOS TV Service. This may be studios’ answer to an iTunes alternative to distribute their digital content and be able to retain as much profit as possible.