NDS Eyes DirecTV, Cable Cos For Its DVR Technology

Scott Greczkowski

Welcome HOME!
Original poster
Staff member
Cutting Edge
Sep 7, 2003
Newington, CT
(Note from Scott - The following was emailed to me, however it contained no URL so I could redirect you to the origionators site. If someone has a URL for this article please send it so I can give the author and company proper credit)

NDS Eyes DirecTV, Cable Cos For Its DVR Technology

April 27, 2004 3:01 p.m.


NEW YORK -- NDS Group PLC (NNDS), the set-top box software maker controlled by News Corp. (NWS), is working to introduce its digital video recorder technology to the U.S., either through DirecTV Group Inc. (DTV) or through cable operators.

Ever since News Corp. took control of DirecTV, the country's largest satellite TV provider, there has been widespread speculation that NDS might replace TiVo Inc. (TIVO) as DirecTV's DVR supplier. TiVo recently revealed in a filing with the Securities and Exchange Commission that its contract with DirecTV is set to expire in February 2007. TiVo is a pioneer in digital video recorder technology, which allows customers to pause and rewind live TV, record programs, and fast forward through commercials.

NDS currently provides DVR and interactive technology to BSkyB, News Corp.'s European satellite TV venture. In addition to DVRs, BSkyB offers its viewers extra interactive features to enhance sports and news coverage as well as games, quizzes and voting. Chase Carey, DirecTV's new chief executive, has repeatedly said he hopes to carry over some of BSkyB's interactive functions to DirecTV.

NDS wants to adapt its interactive technology from BSkyB so it can be employed on DirecTV, Abe Peled, NDS Chief Executive, told Dow Jones.

London-based NDS has already benefited by News Corp's entry into the U.S. satellite TV market. Its contracts with DirecTV ended in August 2003, but were recently renewed in March. The company supplies middleware and conditional access - the means through which pay-TV operators control access to their programming stream - to DirecTV. NDS said it expects the new contracts will boost revenue in fiscal year 2005, which starts in July.

In addition to working the News Corp. angle, NDS is angling to get in with cable operators. The company currently supplies conditional access technology to Cablevision Systems Corp. (CVC) and RCN Corp. (RCNC). Moreover, NDS recently piloted its conditional access software with Comcast Corp. (CMCSA, CMCSK) over a Motorola Inc. (MOT) network.

NDS is "working to develop DVR for U.S. cable, and we think there is a good
opportunity for it," Peled said. But he also acknowledges that getting
cable operators on board won't be easy.
"It takes a long time and patience because cable companies have not moved very quickly in the U.S.." But that could change now that News Corp. has entered the picture, he added.

NDS reported fiscal third-quarter results Tuesday. The company posted net income of $8.02 million, or 14 cents a share, on revenue of $104.2 million.

Users Who Are Viewing This Thread (Total: 0, Members: 0, Guests: 0)

Who Read This Thread (Total Members: 1)

Latest posts