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Cancellation fee appears to apply to everyone


TiVo frownIt looks like TiVo has instituted a $150 cancellation fee for new subscribers, whether or not they get the current $150 mail-in rebate. We stand corrected from our earlier story that suggested that only those receiving the rebates would be held to the cancellation fee if they left TiVo before 12 months.

We wrote last week that the only customers who are held to this one-year minimum are those who agreed to meet "any applicable service commitment," such as the one you make when you apply for the recent $150 rebate. If you didn't make a service commitment, we said, you could leave TiVo whenever you want.

But it looks like TiVo is making it blatantly clear to potential subscribers that they will be penalized if they leave early. In fine print, on the bottom of many pages, TiVo says something to the effect of, "1-year TiVo service commitment required. Early termination fees and other restrictions apply." These notices appear to be independent of any rebate offers.

So it looks like TiVo has decided to charge former customers $150 if they cancel their service before a full year passes. There is one loophole, however: You can cancel within 30 days and not be charged the early termination fee. I guess this new fee is one way to bring down the churn rate.

Thanks to Zatz Not Funny.

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