TiVo and cable giant Comcast have reached a distribution deal, easing some investor concerns over the digital video recorder pioneer's future.
The companies announced the agreement on Tuesday, saying they're working to make TiVo's DVR service and interactive advertising capability available over Comcast's cable network. The first of their co-developed products will be available in mid- to late-2006 and will use the TiVo brand. Financial terms of the deal were not disclosed, but the alliance is nonexclusive.
Previous coverage TiVo president leaving Departure comes weeks after the company starts search for new CEO.
The Comcast deal is considered a win for TiVo, which has long faced the looming threat of battling bigger rivals alone. Though TiVo subscribers rave about the company's digital video recorder service, distribution partners--namely cable companies--have been harder for the company to win over.
The deal arms Comcast with a successful and recognizable DVR service--something leading satellite companies, including EchoStar and DirecTV, have used to attract and keep subscribers. Cable and satellite TV service companies are battling for viewers, and new technologies, such as DVR, video on demand, high- speed Internet access and telephone service, are among the tools they will use against each other.
TiVo shares closed up nearly 75 percent, or $2.87 per share, to $6.70 in Tuesday trading on the Nasdaq. Investors were positive about the news, some upgrading TiVo's investment rating. Citing the Comcast deal, Smith Barney upgraded TiVo from a sell to a hold.
The two companies had flirted before without consummating a deal. The agreement opens up a much larger audience for TiVo.
TiVo receives an upfront payment from Comcast for creating a new DVR that works with Comcast's current service, according to a filing with the Securities and Exchange Commission. TiVo will also receive a recurring monthly fee for each Comcast subscriber who uses TiVo through Comcast. The deal will run for seven years following the completion of the software. Comcast can renew the deal on a year-by-year basis for up to eight additional years.
TiVo's agreement is with Comcast STB Software DVR, a wholly owned subsidiary of Comcast. The deal gives the cable giant access to TiVo's intellectual property--the value of which is currently being argued in a Texas district court in a case brought against EchoStar.
The court recently set a jury selection date in TiVo's long-running patent infringement dispute with the satellite TV provider.
Also part of the deal are advertising features that account for just a fraction of TiVo's overall revenue but could evolve into something more substantial. TiVo will sell certain types of advertising products related to the TiVo service offered through Comcast.
TiVo has been developing interactive advertising technology that's meant to give companies more information and access to couch potatoes.
Other parts of the Comcast deal include home media networking features and TiVoToGo transfers--allowing viewers to access shows recorded on their TiVo DVRs on PCs. Cable and satellite companies have been unwilling to enable capabilities beyond DVR because of concern over long customer support calls. TiVo will be providing Comcast with certain customer and maintenance support.
TiVo's digital video recorder service lets customers pause live broadcasts and program systems to record future shows. The company charges from $99 to $299 for its hardware, and $6.99 to $12.99 a month to access its service.
The majority of TiVo's 3 million or so subscribers come through satellite TV service provider DirecTV. However, DirecTV recently started using a second company, NDS, to provide DVR service, sparking investor concerns over TiVo's future. A deal with Comcast puts to rest some of those concerns by opening up a large new potential audience for TiVo's service.
TiVo spooked investors last week in its earnings call, predicting lower-than-expected growth in the next year.
The deal comes amid a management shakeup at the company. TiVo's president recently resigned, and a search for a successor to the current chief executive is under way.
Obsolete technology, no significant features, and now a 'deal' with a very questionable company. What the heck, Comcast should be able to manage both Voom and Tivo... At least TiVo isn't a family deal (or is it?)
I've got direcTv w/HD and I order the premium package with an NFL season pass. I got my tivo for free and i don't pay anything above my current package for the tivo service. that said: i friggin love that thing. i never miss anything i want to see, and can easily do queries for upcoming shows by genre, actor, etc. that's cool. hands down, no way to 'dis' that.
secondly, if it's obsolete technology, are you saying that because you don't like it, because you have something else to do the same thing (i've got an ati 9700aiw as well and that doesn't work nearly so well, doesn't integrate nearly so well, and certainly isn't on par with ease of use), or because you'd rather get a generic box who's parent company will likely get sued (in the not to near future) for patent infringement?
Obsolete technology, no significant features, and now a 'deal' with a very questionable company. What the heck, Comcast should be able to manage both Voom and Tivo... At least TiVo isn't a family deal (or is it?)
I've got direcTv w/HD and I order the premium package with an NFL season pass. I got my tivo for free and i don't pay anything above my current package for the tivo service. that said: i friggin love that thing. i never miss anything i want to see, and can easily do queries for upcoming shows by genre, actor, etc. that's cool. hands down, no way to 'dis' that.
secondly, if it's obsolete technology, are you saying that because you don't like it, because you have something else to do the same thing (i've got an ati 9700aiw as well and that doesn't work nearly so well, doesn't integrate nearly so well, and certainly isn't on par with ease of use), or because you'd rather get a generic box who's parent company will likely get sued (in the not to near future) for patent infringement?
TiVo gets to broaden their customer base (though I doub't there's much actual revenue in this deal for TiVo)
Comcast gets to offer a much better service to their customers. Maybe it will become their standard DVR option to make the DVR service more attractive (though admittedly most consumers don't know the difference between a device like a TiVo or ReplayTV and a generic "DVR". Maybe they will have this be an extra charge "premium service". Where you get a "DVR" for free and for an extra $10 a month you can get a TiVo.
TiVo gets to broaden their customer base (though I doub't there's much actual revenue in this deal for TiVo)
Comcast gets to offer a much better service to their customers. Maybe it will become their standard DVR option to make the DVR service more attractive (though admittedly most consumers don't know the difference between a device like a TiVo or ReplayTV and a generic "DVR". Maybe they will have this be an extra charge "premium service". Where you get a "DVR" for free and for an extra $10 a month you can get a TiVo.
than a ReplayTV, though. I bought one for my girlfriend for Christmas and she's loving it so far. Gives us Guides and everything on Cable (not digital, btw).
than a ReplayTV, though. I bought one for my girlfriend for Christmas and she's loving it so far. Gives us Guides and everything on Cable (not digital, btw).
Maybe now TiVo will pay the $100.00 rebate they owe me...they advertise the rebate to stimulate sales then look for ways to not pay after you use it a couple of months....they say my unit serial number is on someone else's unit...what a scam....pay up TiVo!!!
Maybe now TiVo will pay the $100.00 rebate they owe me...they advertise the rebate to stimulate sales then look for ways to not pay after you use it a couple of months....they say my unit serial number is on someone else's unit...what a scam....pay up TiVo!!!
The current Comcast box by Motorola sucks. I've had 6 of them so far to date. The hard drives get corrupted so quickly. Now I don't even fast-forward the commercials anymore because the show stops completely and I have to start my show from the beginning again - self defeating if you ask me. Also Comcast removed the functionality to allow you to copy your shows to your computer.
The current Comcast box by Motorola sucks. I've had 6 of them so far to date. The hard drives get corrupted so quickly. Now I don't even fast-forward the commercials anymore because the show stops completely and I have to start my show from the beginning again - self defeating if you ask me. Also Comcast removed the functionality to allow you to copy your shows to your computer.
Comcast must be out of their minds with this one. I "upgraded" to Tivo last week and had them take it off the next day. It really adds no value over the Comcast interface, but adds a very annoying guide that covers half the screen when you change channels and the performance is absolutely horrible. This is a major downgrade over what they offered before, which was already full of problems.
Comcast must be out of their minds with this one. I "upgraded" to Tivo last week and had them take it off the next day. It really adds no value over the Comcast interface, but adds a very annoying guide that covers half the screen when you change channels and the performance is absolutely horrible. This is a major downgrade over what they offered before, which was already full of problems.
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with a very questionable company. What the heck, Comcast
should be able to manage both Voom and Tivo... At least TiVo
isn't a family deal (or is it?)
secondly, if it's obsolete technology, are you saying that because you don't like it, because you have something else to do the same thing (i've got an ati 9700aiw as well and that doesn't work nearly so well, doesn't integrate nearly so well, and certainly isn't on par with ease of use), or because you'd rather get a generic box who's parent company will likely get sued (in the not to near future) for patent infringement?
with a very questionable company. What the heck, Comcast
should be able to manage both Voom and Tivo... At least TiVo
isn't a family deal (or is it?)
secondly, if it's obsolete technology, are you saying that because you don't like it, because you have something else to do the same thing (i've got an ati 9700aiw as well and that doesn't work nearly so well, doesn't integrate nearly so well, and certainly isn't on par with ease of use), or because you'd rather get a generic box who's parent company will likely get sued (in the not to near future) for patent infringement?
Comcast gets to offer a much better service to their customers. Maybe it will become their standard DVR option to make the DVR service more attractive (though admittedly most consumers don't know the difference between a device like a TiVo or ReplayTV and a generic "DVR". Maybe they will have this be an extra charge "premium service". Where you get a "DVR" for free and for an extra $10 a month you can get a TiVo.
Comcast customers obiously get a better product.
Comcast gets to offer a much better service to their customers. Maybe it will become their standard DVR option to make the DVR service more attractive (though admittedly most consumers don't know the difference between a device like a TiVo or ReplayTV and a generic "DVR". Maybe they will have this be an extra charge "premium service". Where you get a "DVR" for free and for an extra $10 a month you can get a TiVo.
Comcast customers obiously get a better product.