Social Feed

I havent heard this...I know comcast signed with tivo, but I dont think time warner is going to....do you have a link or thread that talks about their talks?

Reuters Summit-TiVo Left Out of Cable, Satellite, Telecoms Plans
Thu Aug 11, 2005 6:02 PM ET

NEW YORK (Reuters) - As cable, satellite and phone companies gear up for battle for control of home entertainment, the odd man out could be TiVo Inc. (TIVO.O: Quote, Profile, Research), the pioneer of digital video recording.

No one disputes that digital video recording (DVR), the ability to pause live TV and record TV shows onto a hard drive, will be an integral part of pay television packages.

But most companies selling these services seem intent on building this technology themselves rather than licensing it from TiVo, said executives at the Reuters Telecommunications, Cable and Satellite Summit this week.

Shares fell as much as 8 percent in premarket trading on Thursday, a day after chief executive of DirecTV Group Inc. (DTV.N: Quote, Profile, Research), which accounts for two-thirds of TiVo's subscribers, told Reuters it plans to stop marketing TiVo recorders and replace them with News Corp. (NWS.N: Quote, Profile, Research)-created technology.

TiVo's growth strategy is based on its ability to license its DVR technology to cable, satellite and phone companies. But many industry heavyweights, including DirecTV, SBC (SBC.N: Quote, Profile, Research) and Verizon (VZ.N: Quote, Profile, Research), told Reuters there is little in TiVo's technology portfolio that they can't build themselves.

"The DVR box is very much at the center of what will be developed as we go forward," Chief Executive Chase Carey said at the summit, held at Reuters U.S. headquarters in New York. "We will have something on our own."

His remarks were echoed by Verizon Chairman Lawrence Babbio who said that while the vast majority of people who use TiVo like the interface, he felt that the company could build easy-to-use features on their own.

"Actually, I think I'm totally confident that our IT folks are on the same path," he said. Verizon's TV service is expected to be introduced this year.

Also, the latest generation of set-top boxes, made by Pace Micro Technology Plc (PIC.L: Quote, Profile, Research), Scientific-Atlanta Inc. (SFA.N: Quote, Profile, Research), and Motorola Inc. (MOT.N: Quote, Profile, Research), will also have DVR functions.

"TiVo has some significant challenges going forward," said Hoefer & Arnett analyst April Horace, who noted that DirecTV accounts for 12.5 percent of TiVo's revenue. "And that's all high margin revenue, because they don't spend a lot on subscriber acquisition costs for DirecTV customers."

TiVo spokesman Elliot Sloane said: "We are currently embracing integration into other set-top boxes and engaged in discussions with a number of cable companies right now."

DirecTV, which is controlled by Rupert Murdoch's News Corp., is betting on an advanced set-top box, which will be introduced next year. Carey envisions the box will ultimately evolve into the hub of home entertainment with the capabilities for music and games, as well as video.

The box will be powered by technology made by NDS Group Plc. (NNDS.O: Quote, Profile, Research), which is also controlled by News Corp.

"An ongoing relationship with TiVo would produce something that a segment of the market values but we're confident enough in what we're going to do that the majority of our customers will want the core product we're developing," he added.

SBC Communications Inc. is set to launch its television service by the end of the year. Chief Operating Officer Randall Stephenson said that his company was not in any discussions with TiVo about licensing its technology.

"We're trying to get a product launched with the kind of DVR technologies that are going to meet demand in the future," he said. "The (DVR) functionality we are going to have will be impressive," he said.

BellSouth Corp. (BLS.N: Quote, Profile, Research), which is planning a limited launch of a new TV service in 2006, envisions digital video recording (DVR) technology becoming combined in more advanced set-top boxes, Chief Technology Officer Bill Smith said.

While cable companies have deals with set-top box makers to integrate DVR technology, Smith said PCs from manufacturers, such as Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research), equipped with Microsoft's (MSFT.O: Quote, Profile, Research) Media Center entertainment software could serve similar functions.

"Perhaps we would be better served if we offered a promotion subsidizing a customer buying a Media Center PC," Smith said. "In essence, you would have the highest end set-top box and then we could build on that."

To be sure, TiVo has some supporters in the industry. In March, TiVo licensed its technology to Comcast Corp. (CMCSA.O: Quote, Profile, Research), the largest U.S. cable company.

"TiVo is like the Apple Macintosh in the PC world," said Comcast Corp. chief executive Brian Roberts. "There have been many people who like our DVR interface better than TiVo. But to a TiVo user, it's the original. It's a bit of cult. We affiliated with TiVo because we wanted that innovation around our digital video recorders."

At the time the deal was announced, Comcast touted TiVo's advertising capabilities.

But Hoefer's Horace noted that much of Comcast's advertising focus is on its video-on-demand technology, not digital video recording.

"Comcast has 13 million subscribers today that can access VOD content," she said. "If you're an advertiser, wouldn't you rather have the opportunity to go to more eyeballs?"

Time Warner Cable (TWX.N: Quote, Profile, Research) CEO Glenn Britt said that his company was talking to TiVo.
"There's nothing magical about this technology," he said. "My interest is that there are some consumers who really like the user interface.

Also an e-mail to me from glenn.britt@twcable.com after I sent him a similar inquiry:

Thank you for your note and for your kind words about your previous experiences with us. We do offer a dual tuner, HD DVR. However, we do not have a deal with TIVO to offer their software at the moment. Obviously, I am aware of the deal TIVO and Comcast announced and TIVO is in similar discussions with us and I believe with other cable companies too. I can't predict whether or not we will be able to make a deal with them but I am aware that some customers like yourself like their interface. Once we take over your cable system, I hope we can pursuade you to give us a try for both video and phone in addition to high speed internet access!!

hmm thats the first time I have heard that, and I am excited, but I dont know if this will come down the lines or not as I know time warner has spent alot of time trying out scentific atlantic, or whatever their current dvr is, they are currently testing the 8300hd multi room models. I think it would be a great business venture for time warner to partner with tivo, as Directv has now built the tivo name up, and I believe a good portion of their customers love tivo, and its interface so let Comcast and Time warner ride the wave of Directvs marketing Tivo so fiercly and enjoy the tivo experience. I think that would bring alot of people to both cable co's. Thanks BIlly. we need more people like you in here getting this TIme warner forum going, as I see al these threads and 0 replies