Given how few people ever learned to program a VCR, TiVo was a grand slam idea from the get-go. Forrester Research predicted that TiVo-like devices would slash ad-watching by half within half within a decade, and digital video recorder (DVR) technology quickly spread into competitors' set-top boxes. Explaining TV time-shifting, including the benefits of pausing live TV, proved tricky at first. But TiVo steadily changed TV viewing habits. The company is now facing mounting competition from cable companies in the U.S. but is spreading its brand into Australia and New Zealand.
By Jeremy Caplan and Brendan Lowe