Post by dkennedy on Aug 13, 2005 9:23:06 GMT -5
New TiVo downloads could take on cable
Saturday, August 13, 2005
By Ryan Kim, San Francisco Chronicle Staff Writer
Beta testing ready on Internet-based video service
TiVo Inc. appears poised to test a new Internet-based video download service that could one day pit the Alviso company against traditional cable and satellite companies.
The popular maker of digital video recorders is set to test a handful of programs from the Independent Film Channel, allowing a group of volunteer beta testers to download the shows, according to Engadget.com, which obtained pictures of the test screen interface.
TiVo representatives said Friday that they will be testing a new delivery system and new content next week, but they refused to offer additional details. Spokesman Elliot Sloan would not confirm that the tests were the same as those described by Engadget.com.
"I can't mention any names or any content delivery providers," Sloan said. "I can only confirm that a test will be happening next week."
The leak prompted speculation as to where TiVo may be heading. If the company can overcome some technical hurdles, it could one day position itself as a threat to cable, satellite and eventually Internet protocol television developers like SBC.
Christopher Rowen, an analyst with SunTrust Robinson Humphrey in Atlanta, said it's more likely that TiVo would first move into the movie business, offering quick downloads of new films. But he said the more difficult task would be to become a television provider. That would involve striking deals with the various television companies.
"That will happen, but it will take a while," said Rowan. "A lot of these TV channels and content providers are very wary of letting their content go out over the Internet. They're worried about piracy."
The studios also might not have an incentive to cooperate with TiVo, which made its name by allowing users to skip past commercials.
Observers say that TiVo may need to take some bold steps or its days could be numbered. The company has yet to turn a profit.
TiVo's stock has been hurt lately, dropping 6 percent Thursday after its partner DirecTV said it will stop marketing the TiVo box and will be pushing its own digital video recorder.
The two companies are working together through 2007. Comcast signed a deal in spring with TiVo to develop DVRs, but the cable company is also developing a DVR of its own.
Rowen said that the move to Internet-based downloading may provide a boost to existing TiVo customers but that he's not sure it will be a huge attraction for new ones.
"It will make TiVo more valuable to its customer base, but I'm not sure how it will drive new customers to TiVo," he said.
Saturday, August 13, 2005
By Ryan Kim, San Francisco Chronicle Staff Writer
Beta testing ready on Internet-based video service
TiVo Inc. appears poised to test a new Internet-based video download service that could one day pit the Alviso company against traditional cable and satellite companies.
The popular maker of digital video recorders is set to test a handful of programs from the Independent Film Channel, allowing a group of volunteer beta testers to download the shows, according to Engadget.com, which obtained pictures of the test screen interface.
TiVo representatives said Friday that they will be testing a new delivery system and new content next week, but they refused to offer additional details. Spokesman Elliot Sloan would not confirm that the tests were the same as those described by Engadget.com.
"I can't mention any names or any content delivery providers," Sloan said. "I can only confirm that a test will be happening next week."
The leak prompted speculation as to where TiVo may be heading. If the company can overcome some technical hurdles, it could one day position itself as a threat to cable, satellite and eventually Internet protocol television developers like SBC.
Christopher Rowen, an analyst with SunTrust Robinson Humphrey in Atlanta, said it's more likely that TiVo would first move into the movie business, offering quick downloads of new films. But he said the more difficult task would be to become a television provider. That would involve striking deals with the various television companies.
"That will happen, but it will take a while," said Rowan. "A lot of these TV channels and content providers are very wary of letting their content go out over the Internet. They're worried about piracy."
The studios also might not have an incentive to cooperate with TiVo, which made its name by allowing users to skip past commercials.
Observers say that TiVo may need to take some bold steps or its days could be numbered. The company has yet to turn a profit.
TiVo's stock has been hurt lately, dropping 6 percent Thursday after its partner DirecTV said it will stop marketing the TiVo box and will be pushing its own digital video recorder.
The two companies are working together through 2007. Comcast signed a deal in spring with TiVo to develop DVRs, but the cable company is also developing a DVR of its own.
Rowen said that the move to Internet-based downloading may provide a boost to existing TiVo customers but that he's not sure it will be a huge attraction for new ones.
"It will make TiVo more valuable to its customer base, but I'm not sure how it will drive new customers to TiVo," he said.