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American Morning
TiVo Takes Over
Aired January 15, 2003 - 07:41 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: TiVo is said to be the hottest thing in the TV world, and if you don't know what it is, you will soon, we are told anyway. Tech experts are betting that some day, at some point you will want this device. What is TiVo, and why has it got a number of network executives up in arms about it?
Here is a look at some of what TiVo can do.
(BEGIN VIDEO CLIP)
SUZANNAH SAIDY, TIVO USER: This is my TiVo. The great things about TiVo are you can pause live television, you can pick programs to record a few ways. One is by using WishList, which is picking your favorite actors, your favorite -- I have George Clooney, Tom Cruise. And TiVo will always record -- any time they're on television, it will automatically record them.
You also can record by title. Another great thing about TiVo is it gets to know you. And the way it gets to know you is when you're watching television, you go through the guide and you put a thumbs up or a thumbs down if you like the television show.
I can look at what TiVo recorded for me today, what it thinks I like. So, here with the black circles is what it recorded for me. So, "Trading Spaces," "Room by Room," it knows I like interior designing.
UNIDENTIFIED FEMALE: Would you admit that you forward through ads?
SAIDY: Yes, I definitely forward through ads. I never watch live television ever. TiVo is like my boyfriend, because it knows me extremely well. It knows exactly what I like to watch, it knows all my interests; for example, all of the reality shows. It knows. You can't lie to TiVo.
(END VIDEO CLIP)
HEMMER: So, then is it hype, or will TiVo truly take over TV? Or will it start (ph) trouble also for network television?
Let's talk to the woman you just saw in that videotape, Suzannah Saidy. She says TiVo changed her life. And tech expert Omar Wassow is with us as well.
Good morning to both of you.
SAIDY: Good morning.
OMAR WASSOW, TECHNOLOGY EXPERT: Good morning.
HEMMER: As you were watching that -- a great demonstration by the way...
SAIDY: Thank you.
HEMMER: ... the two of you were talking about additional features that we did not see. Why has TiVo changed your life? Why has it made such an impact?
SAIDY: Well, I no longer rush home to watch television anymore, so that's probably the biggest. My favorite shows are always recorded. I no longer watch live television, no commercials, no channel surfing...
HEMMER: What does that mean? Does that give you control? Does that give you access? Does it give you power? What...
SAIDY: It gives me control of what I want to watch, and when I come home, there's an entire list of shows that I can watch. So, I never am watching bad television.
HEMMER: But you're also watching AMERICAN MORNING at home live every day at 7:00 a.m. Eastern Time...
SAIDY: AMERICAN MORNING is the only live show I watch.
HEMMER: ... right?
SAIDY: It's the only live show I watch.
HEMMER: You know, we paid her to say that.
Omar, let me ask you something here. There are industry experts who have suggested that there are more outhouses in America than there are TV sets right now installed. Is it over-hyped then to say that TiVo is truly going to revolutionize things?
WASSOW: I don't think it's over-hyped, because if you look at the early stage of any technology, only a few people have it. At one point, only a few people had cell phones, but clearly, it's taken the world by storm.
What you're going to see with TiVo-like technologies is that they're going to become embedded in televisions, in cable set top boxes. It's going to become pervasive and part of the sort of natural way everybody watches TV.
HEMMER: You're convinced of that.
WASSOW: Absolutely.
HEMMER: But so many times, Web TV, AOL (ph) TV, it has not caught on yet. Why TiVo? WASSOW: TiVo has -- 97 percent of the people who use it are so enthusiastic about it, they recommend it to their friends. It clearly makes watching television more convenient and more fun and more engaging. And so, it's going to become something that is just an extension of how everybody consumes television.
HEMMER: Do you agree with that, Suzannah?
SAIDY: I agree with it.
HEMMER: I think the FCC chairman does as well. Michael Powell is a huge fan of TiVo. He was quoted recently as saying in Las Vegas: "TiVo is God in my household. I can't wait to walk in the house each day to see what it's recorded for me. Is there a way to share a program with my sister? She loves TV as much as I do."
Knowing that you have Michael Powell in your back pocket, what does that portend then for this device?
WASSOW: Well, it's a good sign if you have Michael Powell in your back pocket. The flip side is, a lot of the networks are up in arms about the idea of things like sharing television or fast- forwarding through ads. There are lawsuits against TiVo's competitor, Replay. There are all sorts of issues yet to be resolved there on copyrights.
And so, there are some big open questions about how the technology will become pervasive, but I think it's very clear that it makes it so much more convenient to watch TV on your own schedule that it's going to become a standard.
HEMMER: I think your answer walks us into the next point. Network executives are saying that they provide commercials. That's the engine that essentially runs their programming.
Jamie Kellner heads up Turner Broadcasting. Jamie says, "I'm a big believer that commercials serve a great service to our country and drive the economy."
Mel Karmazin of Viacom says: "We give you all of this great content for free. All we ask is for you to watch our commercials."
Can big companies like these stop TiVo in its tracks and continue to be profitable, so that the commercials are not zapped out and take away profits from these companies?
WASSOW: You can't stand in the way of technological change. I mean, they may be able to in some ways incorporate advertising into their shows. You saw that with "Survivor." You also will see changes like more subscription-driven television. Half of my TiVo is HBO, and they don't care if I'm -- there are no ads to skip. They're happy if I'm watching. So, I think you'll see the business models change as much as anything else.
HEMMER: I'd say we'll start to see more creative advertising and more creative ideas. Quickly, do you watch more TV now that you have TiVo? Yes or no.
SAIDY: Without a doubt, unfortunately.
HEMMER: You do?
SAIDY: Yes.
WASSOW: Likewise.
HEMMER: You too?
WASSOW: Absolutely.
HEMMER: The revolution, how long does it take, the best-case scenario, do you believe?
WASSOW: I think this is in 50 percent of homes within 10 years.
HEMMER: Ten years. That is a long forecast.
WASSOW: It is.
HEMMER: In technology today, 10 years could be a lifetime.
Well, think about how often it takes, people replace their cable boxes every maybe three to five years. So, you know, somewhere you're looking at -- and that's for a lot of technologies, you know, it's 10 to 20 years. The Internet was an overnight success, but it still took a while.
HEMMER: We'll talk again in 10 years then. Omar Wassow, tech expert, Suzannah Saidy, thanks for the demonstration.
SAIDY: Thank you.
WASSOW: Thank you.
HEMMER: All right, good to talk to you, guys.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired January 15, 2003 - 07:41 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: TiVo is said to be the hottest thing in the TV world, and if you don't know what it is, you will soon, we are told anyway. Tech experts are betting that some day, at some point you will want this device. What is TiVo, and why has it got a number of network executives up in arms about it?
Here is a look at some of what TiVo can do.
(BEGIN VIDEO CLIP)
SUZANNAH SAIDY, TIVO USER: This is my TiVo. The great things about TiVo are you can pause live television, you can pick programs to record a few ways. One is by using WishList, which is picking your favorite actors, your favorite -- I have George Clooney, Tom Cruise. And TiVo will always record -- any time they're on television, it will automatically record them.
You also can record by title. Another great thing about TiVo is it gets to know you. And the way it gets to know you is when you're watching television, you go through the guide and you put a thumbs up or a thumbs down if you like the television show.
I can look at what TiVo recorded for me today, what it thinks I like. So, here with the black circles is what it recorded for me. So, "Trading Spaces," "Room by Room," it knows I like interior designing.
UNIDENTIFIED FEMALE: Would you admit that you forward through ads?
SAIDY: Yes, I definitely forward through ads. I never watch live television ever. TiVo is like my boyfriend, because it knows me extremely well. It knows exactly what I like to watch, it knows all my interests; for example, all of the reality shows. It knows. You can't lie to TiVo.
(END VIDEO CLIP)
HEMMER: So, then is it hype, or will TiVo truly take over TV? Or will it start (ph) trouble also for network television?
Let's talk to the woman you just saw in that videotape, Suzannah Saidy. She says TiVo changed her life. And tech expert Omar Wassow is with us as well.
Good morning to both of you.
SAIDY: Good morning.
OMAR WASSOW, TECHNOLOGY EXPERT: Good morning.
HEMMER: As you were watching that -- a great demonstration by the way...
SAIDY: Thank you.
HEMMER: ... the two of you were talking about additional features that we did not see. Why has TiVo changed your life? Why has it made such an impact?
SAIDY: Well, I no longer rush home to watch television anymore, so that's probably the biggest. My favorite shows are always recorded. I no longer watch live television, no commercials, no channel surfing...
HEMMER: What does that mean? Does that give you control? Does that give you access? Does it give you power? What...
SAIDY: It gives me control of what I want to watch, and when I come home, there's an entire list of shows that I can watch. So, I never am watching bad television.
HEMMER: But you're also watching AMERICAN MORNING at home live every day at 7:00 a.m. Eastern Time...
SAIDY: AMERICAN MORNING is the only live show I watch.
HEMMER: ... right?
SAIDY: It's the only live show I watch.
HEMMER: You know, we paid her to say that.
Omar, let me ask you something here. There are industry experts who have suggested that there are more outhouses in America than there are TV sets right now installed. Is it over-hyped then to say that TiVo is truly going to revolutionize things?
WASSOW: I don't think it's over-hyped, because if you look at the early stage of any technology, only a few people have it. At one point, only a few people had cell phones, but clearly, it's taken the world by storm.
What you're going to see with TiVo-like technologies is that they're going to become embedded in televisions, in cable set top boxes. It's going to become pervasive and part of the sort of natural way everybody watches TV.
HEMMER: You're convinced of that.
WASSOW: Absolutely.
HEMMER: But so many times, Web TV, AOL (ph) TV, it has not caught on yet. Why TiVo? WASSOW: TiVo has -- 97 percent of the people who use it are so enthusiastic about it, they recommend it to their friends. It clearly makes watching television more convenient and more fun and more engaging. And so, it's going to become something that is just an extension of how everybody consumes television.
HEMMER: Do you agree with that, Suzannah?
SAIDY: I agree with it.
HEMMER: I think the FCC chairman does as well. Michael Powell is a huge fan of TiVo. He was quoted recently as saying in Las Vegas: "TiVo is God in my household. I can't wait to walk in the house each day to see what it's recorded for me. Is there a way to share a program with my sister? She loves TV as much as I do."
Knowing that you have Michael Powell in your back pocket, what does that portend then for this device?
WASSOW: Well, it's a good sign if you have Michael Powell in your back pocket. The flip side is, a lot of the networks are up in arms about the idea of things like sharing television or fast- forwarding through ads. There are lawsuits against TiVo's competitor, Replay. There are all sorts of issues yet to be resolved there on copyrights.
And so, there are some big open questions about how the technology will become pervasive, but I think it's very clear that it makes it so much more convenient to watch TV on your own schedule that it's going to become a standard.
HEMMER: I think your answer walks us into the next point. Network executives are saying that they provide commercials. That's the engine that essentially runs their programming.
Jamie Kellner heads up Turner Broadcasting. Jamie says, "I'm a big believer that commercials serve a great service to our country and drive the economy."
Mel Karmazin of Viacom says: "We give you all of this great content for free. All we ask is for you to watch our commercials."
Can big companies like these stop TiVo in its tracks and continue to be profitable, so that the commercials are not zapped out and take away profits from these companies?
WASSOW: You can't stand in the way of technological change. I mean, they may be able to in some ways incorporate advertising into their shows. You saw that with "Survivor." You also will see changes like more subscription-driven television. Half of my TiVo is HBO, and they don't care if I'm -- there are no ads to skip. They're happy if I'm watching. So, I think you'll see the business models change as much as anything else.
HEMMER: I'd say we'll start to see more creative advertising and more creative ideas. Quickly, do you watch more TV now that you have TiVo? Yes or no.
SAIDY: Without a doubt, unfortunately.
HEMMER: You do?
SAIDY: Yes.
WASSOW: Likewise.
HEMMER: You too?
WASSOW: Absolutely.
HEMMER: The revolution, how long does it take, the best-case scenario, do you believe?
WASSOW: I think this is in 50 percent of homes within 10 years.
HEMMER: Ten years. That is a long forecast.
WASSOW: It is.
HEMMER: In technology today, 10 years could be a lifetime.
Well, think about how often it takes, people replace their cable boxes every maybe three to five years. So, you know, somewhere you're looking at -- and that's for a lot of technologies, you know, it's 10 to 20 years. The Internet was an overnight success, but it still took a while.
HEMMER: We'll talk again in 10 years then. Omar Wassow, tech expert, Suzannah Saidy, thanks for the demonstration.
SAIDY: Thank you.
WASSOW: Thank you.
HEMMER: All right, good to talk to you, guys.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
