|TiVo and DirecTV Renew Partnership|
|Home Theater News Cable-Satellite Receiver-DVR-PVR News|
|Written by AVRev.com|
|Wednesday, 12 April 2006|
Digital video recording maker TiVo announced it has extended it's partnership with satellite TV provider DirecTV Group Inc. for another three years.
Under the agreement, DirecTV will continue to provide TiVo service to its existing subscribers. Both companies also extended their advertising relationship and agreed not to assert patent rights against each other.
With DirecTV having recently begun switching to a competing technology from its sister company, News Corp.'s NDS, industry analysts had questioned whether TiVo would be entirely cut off from DirecTV when the old contract expires in February 2007. TiVo could have lost its existing DirecTV subscribers, each of whom brings TiVo roughly $1 a month.
The two companies didn't disclose specific financial terms of the deal but said the economics were similar to their original 2003 agreement.
TiVo's revolutionary technology lets people record television without the hassles of video tapes. Users can pause live TV, do instant replays and begin watching programs even before the recording has finished.
In recent years TiVo has seen increased competition from other AV companies making their own DVRs, including Motorola Inc. and Scientific-Atlanta Inc., which is now owned by Computer router giant Cisco Systems Inc.
TiVo has been touting features such as parental controls to differentiate itself from rivals and is pursuing more licensing deals with cable companies and electronics makers to use its technology. TiVo already has signed a deal with the nation's largest cable operator, Comcast Corp.
The company also is in the midst of a jury trial against DirecTV's rival, EchoStar Communications Corp., the parent of Dish Network, alleging the satellite TV provider is infringing on its DVR patents. Closing arguments in that case in Marshall, Texas, were scheduled Thursday.
If TiVo wins, they may move to enforce their patents and try to collect licensing fees from other DVR providers.