TiVo Hints of New DIRECTV Deal

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Per Swanni

http://www.tvpredictions.com/tivo060507.htm

TiVo Hints of New DIRECTV Deal
The company CEO says DIRECTV's new owners would be a 'positive."
By Phillip Swann

Washington, D.C. (June 5, 2007) -- TiVo CEO Tom Rogers yesterday suggested that DIRECTV might renew its marketing relationship when the satcaster is taken over by Liberty Media.

That's according to an article by Reuters.

For several years, DIRECTV marketed TiVo's Digital Video Recording service to its customers, helping TiVo amass roughly half of its 4.3 million subscriber base. DIRECTV-TiVo DVRs include both HD DVRs and standard-definition DVRs.

However, DIRECTV decided in 2005 to stop offering TiVo after Rupert Murdoch's News Corp. purchased control of the company. News Corp. owns a rival DVR service.

While TiVo continues to provide service for existing DIRECTV-TiVo subs, the lack of new satellite subs has dramatically slowed the company's growth.

Noting that Liberty Media will take control of DIRECTV later this year in a stock swap with News Corp., Rogers yesterday said that could be a "positive" for TiVo.

"Liberty is a company that has no ownership interests, now or after the DIRECTV closes, in a competing DVR, and that probably changes things," Rogers told a Deutsche Bank investor conference, according to Reuters.

Rogers even said he knows Liberty officials who are fans of his company's DVR.

"I look at that as a positive in terms of a change of ownership though that deal hasn't closed yet," he said.

When DIRECTV launched its own High-Definition DVR last year, many satellite owners expressed dissatisfaction with the device and called for DIRECTV to once again begin selling TiVo.

However, DIRECTV has worked to eliminate software bugs in the HD DVR, which has largely quieted the critics.

TiVo could certainly benefit from DIRECTV offering its HD DVR to its 16 million subscribers. The company's standalone HD DVR retails for $799, which is far too expensive for most high-def owners.

TiVo has said it plans to release a less expensive HD DVR by the end of the year.

In other issues, TiVo's Rogers said yesterday that he still expects Comcast to begin rolling out its DVR service this August.

"I certainly hope it remains on schedule," said Rogers. "It's largely beyond our control... I can just measure ongoing enthusiasm from Comcast operating people," he told the investors conference, according to Reuters.

He added that Cox Communications will also launch TiVo-enabled Motorola set-tops by the end of the year.
 
yeah, and i have some swamp land here in florida i'll sell ya. i take anything swann says with a grain of sand. best to hear that from directv, you know!
 
Not just Swanni

http://www.reuters.com/article/industryNews/idUSN0420391420070605

TiVo sees DirecTV under Liberty as "positive"
Mon Jun 4, 2007 6:46PM EDT
By Yinka Adegoke

NEW YORK (Reuters) - TiVo Inc. said on Monday it expects its relationship with DirecTV Group Inc. to improve after the satellite television provider is taken over by John Malone's Liberty Media Corp..

DirecTV said in August 2005 that it would stop marketing TiVo digital video recorders to its customers, focusing instead on boxes made by NDS, a company that is owned by DirecTV's largest shareholder News Corp.

But with control of DirecTV expected to pass from News Corp. to Liberty Media later this year, that could be "positive" for TiVo, said its Chief Executive Tom Rogers.

"Liberty is a company that has no ownership interests, now or after the DirecTV closes, in a competing DVR, and that probably changes things," Rogers told a Deutsche Bank investor conference.

Rogers said people he knew at Liberty were fans of TiVo DVRs.

"I look at that as a positive in terms of a change of ownership though that deal hasn't closed yet," he added.

Control of DirecTV will be passed to Liberty as part of an $11 billion exchange of cash and assets with Rupert Murdoch's News Corp. Over 3 million DirecTV customers are also TiVo users.

Investors view TiVo's fortunes as closely linked to its relationships with cable and satellite operators.

Rogers confirmed the first generic cable DVRs with TiVo software will be rolled out in early tests with customers of No. 1 U.S. cable operator Comcast Corp. this August in two markets in the New England area. Comcast DVRs are made by Motorola Inc.

Nearly two years ago the two companies first announced they would be working together on the service. The market had speculated integration problems for the TiVo software into the Comcast DVRs may have led to delays.

"I certainly hope it remains on schedule," said Rogers. "It's largely beyond our control... I can just measure ongoing enthusiasm from Comcast operating people," he said.

Rogers said privately held Cox Communications Inc., the No. 4 U.S. cable operator, will likely roll out its TiVo-enabled Motorola boxes by the end of the year. Analysts expect it may take longer to launch TiVo-enabled boxes in the Cox regions that use Cisco System Inc.'s Scientific Atlanta DVRs.

Analysts have grown increasingly cool on TiVo's growth potential, noting that its efforts to add features and share its software with cable providers, rather than making its own boxes, have yet to pay off in terms of subscriber gains.

Shares in TiVo closed Monday up 1.6 percent at $6.26 on Nasdaq.
 
yeah, and i have some swamp land here in florida i'll sell ya. i take anything swann says with a grain of sand. best to hear that from directv, you know!

I agree.

When I see a comment from Malone or another highly-placed D* official saying something like, "We have agreed to offer the TiVo DVR platform on new DirecTV units", then I'll believe it.

What Rogers says in front of a group of investors doesn't carry much weight for me.
 
I really like the TIVO software so I hope this somehow comes true, but if they do they won't have any boxes ready for a couple of years now.
 
What would be nice is if Liberty buys out Tivo.
 
What would be nice is if Liberty buys out Tivo.

Even though Tivo just turned out a profit it still needs a suitable suitor that can help do more marketing and leverage deals. That being said, Liberty might be a good buyer but that could impact Cable and other deals.
 
It would be a good move for Directv though. Look at all the people that would come over to Directv just for the Tivo.
 
It would be a good move for Directv though. Look at all the people that would come over to Directv just for the Tivo.

I've always believed Directv should support 2 versions as it suggested years ago. A cheaper more generic version and slight premium brand name one like Tivo. Even though Tivo is only 4 million, its still a great brand and product and Directv could benefit from keeping them around by moving with them rather then dumping them completely. I sure hope we see an MPEG4 HD Directv Tivo one day.
 
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