Scott Burns from MSN Money preaches the benefits of TiVo. In this article he claims that a TiVo device pays for itself in the value of your time saved after 12.5 hours for the $100 price to buy the device and after an additional 6.5 hours for each monthly fee of $13.
His assumption is that you can put a value on your free time. For the purposes of the article, the author chose $8.00 per hour without any explanation.
From this, he calculates that you actually have a “return” on investment or a “profit” after shelling out the money each month for the device.
I don’t buy it (pun possibly intended). Sure, you do save time, but I believe that most people wouldn’t take that newly found free time and earn more money or even do anything useful. They would probably just watch more television. Maybe I’m just projecting what I believe I would do; if I had a TiVo or similar device, I would probably spend more time in front of the television.
Updated February 6, 2012 and originally published October 25, 2004. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.