Why can't TiVo turn a profit

In 1997, two engineers, Michael Ramsay and James Barton founded TiVo Inc. to enhance television experience. TiVo as brand is recognized and became generic term for DVR's but but sadly, TiVo has yet to turn a profit.
Tivo consists of two parts - the TiVo box (the digital video recorder or DVR), and the TiVo service.
Through TiVo service the customers can easily choose, record, skip commercials or pause and play back the live TV in a friendly and approachable way.
With TiVo's new technology, the fun Tivo logo, the user-friendly interface, recognizable navigation sounds, and TiVo's tag line; "TiVo TV Your Way.", TiVo customers know that TiVo stands for FUN!
Despite the loyal customers loves TiVo, the press is delighted by TiVo, the company can't turn profit. The competition is getting strong and TiVo has hard time to be a success story.

TiVo has fortified his brand partnering with other major brands like DirectTV, Yahoo! TV, Sony, Apple, or Comcast Cable. TiVo is offered with DirectTV satellite TV service but without the TiVo box for DirectTV customers. Partnered with Yahoo users can schedule shows to be recorded on TiVo from accessing Yahoo! TV. Recently TiVo communicated his partnership with Apple and Sony, allowing TiVo users to download content to their Apple iPods or Sony PSPs. TiVo managed to partner even with advertisers, and will soon offer targeted advertisements to users who choose to record the ads.
These partnerships definitely help TiVo to strength his brand but it remains questionable that will help the company to turn profit. Analysts foretell that the capacity of DVR market is growing and it is up to TiVo to find ways to improve the technology before the competition does it.