TiVo and Google: Two One-Trick Ponies

There's a great story about TiVo from Investor's Business Daily this week that puts the digital video recording company in historical perspective. It also makes an interesting comparison with Google. From the story:

If TiVo as a company did fade out, through an acquisition or other means, it would join an exclusive group of firms killed by the market they created. Other examples include Netscape in the Internet market, Lotus 1-2-3 in spreadsheets and the Sony Betamax in VCRs.

Can first movers like TiVo manage their way out of the market burial awaiting them? Some say it's possible. But much of it spins on reinventing yourself and being faster and better in a commoditized world.

TiVo was such a hit, its name is used as a verb for recording video just like Google is for search.

That last bit makes me wonder: would Google still be around as an independent entity if it hadn't stumbled across AdWords and AdSense? Google has made billions on a very simple concept of delivering ads that match what people are searching for. Coupled with easy self-serve advertising, these two features are responsible for almost all of their revenue. They reinvest it into other products that for the most part are no different from those of their competitors.

Well ... that's not entirely true. I would argue that their major differentiator is the lack of obnoxious advertising -- what they call their "do no evil" approach. But they can do that for now because AdWords, a one-trick pony, was so lucrative.

TiVo people: if you're listening, I really hope you can find your AdSense! I really don't want to have to substitute the $150 replacement you made me buy (to maintain my lifetime membership) with a substandard knock-off.

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