TiVo, the maker of digital television recorders, has halved its prices in the US to just $100 (£54), as part of a $50m plan to increase user numbers.
TiVo faces a potential challenge from rival systems
The California-based firm, whose subscription-based service allows users to record and pause live TV, wants to attract 10 million users by 2008.
TiVo, which currently has 1.6 million subscribers, also hopes to increase sales to $1bn, up from $141m last year.
Some analysts are doubtful that the firm will hit its targets.
They have suggested that TiVo may actually see sales slow as more rival systems come onto the market.
The company's share price recently hit a 16 month low.
Forrester Research analyst Josh Bernoff said TiVo was attempting to get as many subscribers as possible before the rival services start to arrive.
"This is their shot to get a whole lot of new subscribers before cable DVR subscribers really take off," he said.