Post by dkennedy on Aug 10, 2005 4:48:20 GMT -5
TiVo seen as add-on, not stand-alone
August 10, 2005
By Derek Caney
NEW YORK (Reuters) - TiVo Inc.'s digital video recording technology may be successful as an add-on feature to cable and satellite offerings, but cable and phone company executives cast doubt that it could survive as a stand-alone subscription business.
TiVo's fortunes hinge on its ability to sign deals allowing pay TV services to use its technology, which lets users pause live programs and easily record them onto a hard drive.
Many cable and satellite services give customers set-top boxes with similar functions, which threaten to undercut TiVo's leading position in the DVR market.
BellSouth Corp., 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 told the Reuters Telecommunications, Cable and Satellite Summit on Tuesday.
While cable companies have deals with set-top box makers such as Scientific-Atlanta Inc., Motorola Inc., Pace Micro Technology Plc and others, Smith said PCs from manufacturers, such as Hewlett-Packard Co., equipped with Microsoft's Media Center home 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 at the summit, held at Reuters U.S. headquarters in New York. "In essence, you would have the highest end set-top box and then we could build on that."
Asked if he would pursue a separate licensing agreement with TiVo, Smith said, "Most of (those functions) would perhaps be built into what we would do through the Microsoft system as opposed to doing something separate. But they do have a nice user interface, so I guess the potential is always there for them to play a role."
Time Warner Cable Chief Executive Glenn Britt said he envisioned TiVo as a feature, rather than a separate subscription business.
"TiVo is a technology. It's not a separate business," he said at the summit held this week at Reuters' offices here.
The founders of TiVo initially sold separate set-top boxes and subscriptions to its service. That business has since become a fraction of its overall subscriber base, most of which comes from its alliance with DirecTV Group Inc.
"What the marketplace has shown is if you have an integrated set-top box, whether it's cable or satellite box where everything works together as part of your monthly subscription, that's a better model," Britt said.
He added that with the appointment of Tom Rogers to TiVo's post of chief executive, the company has focused on selling its technology to cable and satellite companies.
"Some consumers really like their consumer interface," Britt said. "If we could make an attractive deal for both of us, it might be good to offer that as an extra."
Verizon Communications Inc.'s vice chairman Lawrence Babbio has no plans to use TiVo as its DVR service. "Our DVR technology is going to be very user friendly," he said. "Our folks are on totally on track with the user guys."
TiVo spokesman Elliot Sloane said: "The TiVo model has changed and in many ways, is more of a hybrid than ever before. We are currently embracing integration into other set-top boxes and engaged in discussions with a number of cable companies right now.
"On the other hand, our stand-alone product and direct relationship with subscribers is still an important component of our business model," he added.
In March, TiVo licensed its technology to Comcast Corp., the largest U.S. cable company, for use in current and future set-top boxes.
TiVo currently has a long-standing deal with News Corp.-controlled DirecTV Group Inc., which accounts for two-thirds of its subscribers and ends in 2007.
But that deal could be threatened by technology developed by another News Corp.-owned company: NDS. Recorders using NDS technology are expected to be marketed heavily as early as this October, DirecTV executives have said.
© Reuters 2005. All Rights Reserved.
August 10, 2005
By Derek Caney
NEW YORK (Reuters) - TiVo Inc.'s digital video recording technology may be successful as an add-on feature to cable and satellite offerings, but cable and phone company executives cast doubt that it could survive as a stand-alone subscription business.
TiVo's fortunes hinge on its ability to sign deals allowing pay TV services to use its technology, which lets users pause live programs and easily record them onto a hard drive.
Many cable and satellite services give customers set-top boxes with similar functions, which threaten to undercut TiVo's leading position in the DVR market.
BellSouth Corp., 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 told the Reuters Telecommunications, Cable and Satellite Summit on Tuesday.
While cable companies have deals with set-top box makers such as Scientific-Atlanta Inc., Motorola Inc., Pace Micro Technology Plc and others, Smith said PCs from manufacturers, such as Hewlett-Packard Co., equipped with Microsoft's Media Center home 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 at the summit, held at Reuters U.S. headquarters in New York. "In essence, you would have the highest end set-top box and then we could build on that."
Asked if he would pursue a separate licensing agreement with TiVo, Smith said, "Most of (those functions) would perhaps be built into what we would do through the Microsoft system as opposed to doing something separate. But they do have a nice user interface, so I guess the potential is always there for them to play a role."
Time Warner Cable Chief Executive Glenn Britt said he envisioned TiVo as a feature, rather than a separate subscription business.
"TiVo is a technology. It's not a separate business," he said at the summit held this week at Reuters' offices here.
The founders of TiVo initially sold separate set-top boxes and subscriptions to its service. That business has since become a fraction of its overall subscriber base, most of which comes from its alliance with DirecTV Group Inc.
"What the marketplace has shown is if you have an integrated set-top box, whether it's cable or satellite box where everything works together as part of your monthly subscription, that's a better model," Britt said.
He added that with the appointment of Tom Rogers to TiVo's post of chief executive, the company has focused on selling its technology to cable and satellite companies.
"Some consumers really like their consumer interface," Britt said. "If we could make an attractive deal for both of us, it might be good to offer that as an extra."
Verizon Communications Inc.'s vice chairman Lawrence Babbio has no plans to use TiVo as its DVR service. "Our DVR technology is going to be very user friendly," he said. "Our folks are on totally on track with the user guys."
TiVo spokesman Elliot Sloane said: "The TiVo model has changed and in many ways, is more of a hybrid than ever before. We are currently embracing integration into other set-top boxes and engaged in discussions with a number of cable companies right now.
"On the other hand, our stand-alone product and direct relationship with subscribers is still an important component of our business model," he added.
In March, TiVo licensed its technology to Comcast Corp., the largest U.S. cable company, for use in current and future set-top boxes.
TiVo currently has a long-standing deal with News Corp.-controlled DirecTV Group Inc., which accounts for two-thirds of its subscribers and ends in 2007.
But that deal could be threatened by technology developed by another News Corp.-owned company: NDS. Recorders using NDS technology are expected to be marketed heavily as early as this October, DirecTV executives have said.
© Reuters 2005. All Rights Reserved.