Tivo's annual revenue is 406m, and the company is worth 1.45bn. (
https://www.google.com/finance?q=NASDAQ%3ATIVO) Respectable? Sure. But not even close to Netflix.
Netflix's annual revenue is 4.3 BN (i.e. over 10x higher), and the company is worth 21bn. (https://www.google.com/finance?q=NASDAQ%3ANFLX)
Why? Sure, a relatively few people will use Tivo, but many more won't. Empirically, the convenience / lack of planning necessary to watch streaming video is worth approximately 10x more.
This illustrates the importance of using data rather than anecdotes to draw conclusions. As a HN poster, our personal experience tends to be heavily biased towards our self-selected associations with more technically oriented people rather than "normal," average people.