TiVo has struggled in the DVR category they essentially invented, in spite of great buzz and rabid TiVo evangelists. The company has never had a profitable quarter, primarily because lightning fast technological innovations allowed TV cable providers and consumer electronics retailers with better distribution channels, (and in some cases, better software and equipment) to jump into the category and commoditize it by lowering the price, bundling services, and offering free equipment. Poor TiVo.

So what can you learn from TiVo’s experience?

Stop assuming that “first mover advantage” is a given. It’s not. And in some cases it’s a disadvantage.

Brand share isn’t guaranteed even if you have avid brand users. Sure, brand experience and loyalty are important. But TiVo spawned some of the most fervent evangelists in recent history and the brand is still struggling to turn a profit.

It’s not a good sign when your brand name becomes the de facto term for the category, unless, like Google, you’re the proverbial 600 pound gorilla. If consumers equate your brand name with the service, and competition commoditizes that service, it’s tough to reassert a unique value proposition.