Industry News

DirecTV And TiVo Partnered Into 2010


DirecTV and TiVo have extended their partnership for three years, allowing DirecTV to continue to offer TiVo's DVR services to its subscribers, and preserving an advertising relationship between the two companies. The partnership, set in the original agreement to expire in February of 2007, will now run through February of 2010.


The extension is critical for TiVo, as industry estimates from January of this year pegged 2.8 million of TiVo's 4.4 million subscribers as being DirecTV customers. According to reports TiVo receives approximately one dollar per month for each of its DirecTV customers.


While this is obviously good news for TiVo, it's not all good. DirecTV is already selling receivers with built-in DVRs using a competing technology called NDS from DirecTV's sister company News Corp., with an HD DVR/receiver (the HR20) based on NDS technology scheduled to arrive this summer. The distribution agreement by which DirecTV sells TiVo-equipped receivers will expire in February 2007.


Although DirecTV will continue to offer TiVo's DVR service through 2010, it will do so concurrent with its own NDS-based DVR service as well, and will sell only NDS boxes under the DirecTV brand from 2007 onward.


TV Shows Aren't Just For TV Anymore!


Disney a few days ago announced that some of the most popular shows from ABC and its other networks will be available for free on the Internet later this month, including such hits as Lost, Alias, Commander In Chief, and Desperate Housewives.


At the end of this month, Disney-owned ABC's web site will allow people with broadband connections to view new episodes of its shows the day following the original air date. While viewers will be able to pause, rewind and fast-forward during playback, there will be commercial breaks that cannot be skipped. Disney is hopeful this model will succeed, and already has several advertisers signed on, including Ford Motor Co., and Procter and Gamble.


This is just the beginning of Disney's online expansion. Disney's Soapnet cable channel is going online on April 17th, and the Disney Channel will start offering shows on the web in June, and according to reports ABC Family will follow. This bold entry into web TV comes just months after Apple's Steve Jobs became Disney's largest shareholder by virtue of Disney's "acquisition" of Pixar. According to reports the business ABC is doing with its shows through Apple's iTunes Store won't be affected, as the free programs will not be downloadable to portable devices.

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