TiVo Gets A Shot In The Arm

Posted by John Goulden Categories: Corporate News, Home Entertainment

When it was announced in the fall of 2004 that DirecTV would be ending their relationship with TiVo, many saw it as the writing on the wall for the beleaguered PVR maker.  Indeed, they appeared to be floundering in a market that they helped create and once dominated, despite earning a profit for the first time in late 2005. 

DirecTV eventually rolled out their own line of PVRs to replace the TiVo units, and was met with underwhelming enthusiasm.  As a likely result, the two companies have announced that they will be extending their relationship, originally scheduled to end in 2007, for another three years.  TiVo chief executive Tim Rogers said, “We are pleased to have reached an agreement with DIRECTV that will allow us to continue to provide our service to the more than 2 million DIRECTV TiVo households.”  “Pleased” probably doesn’t even begin to describe his joy at another three years of recurring revenue on those 2 million households.  This “shot in the arm” will bolster TiVo’s bottom line, and give them some much needed revenue.

Feeling rather chummy all the way around, both companies also agreed to forgo any patent disputes against one another till the agreement was concluded.  Naturally this means that the moment the agreement terms are up, the gloves will come off and patent suits will start flying.

Read More | ExtremeTech