TiVo always implied they wanted to be a software and services company rather than a hardware manufacturer. Not only do deals with Comcast, DirecTV, and now Cox further those goals, they ensure TiVo’s business viability in the face of OCAP of SDV. As with Comcast’s Motorola 6412 boxes, TiVo software will be a download option for select Cox DVRs when available in 2007. I assume the TiVo brand name, advertising features, and patent portfolio helped secure this deal which Cox was evaluating in May.
TiVo Inc. (Nasdaq: TIVO), the creator of and a leader in television services for digital video recorders (DVR), and Cox Communications, the nation’s fourth-largest cable television company, have entered into an agreement to make TiVo’s leading DVR and interactive advertising service available to select Cox subscribers.
Under the terms of the agreement, TiVo will customize its cable software for deployment on compatible Cox DVR set-top-boxes. TiVo’s downloadable software will allow Cox to deliver the TiVo(R) service in Cox subscriber homes without replacing existing DVR boxes, and without an install appointment. In this way, current Cox DVR customers who wish to enjoy the award-winning TiVo service, can quickly and easily add the benefits of TiVo to their DVR subscription.
“We are excited to add TiVo to the portfolio of Cox entertainment services,” said Steve Necessary, vice president of video product development, Cox Communications. “Cox is committed to offering our customers the best television experience possible. Our new joint service will allow us to build on the popularity of the TiVo brand while continuing to provide our customers with the simplicity of our products and the award winning customer service they have come to expect.”
Cox Digital Cable customers with DVR service who choose to add TiVo to their Cox subscription will enjoy the renowned TiVo user interface as well as new innovations that link the capabilities enabled by Cox’s broadband network like On DEMAND and High Definition service, with exclusive TiVo features like Season Pass(TM) recordings, WishList(R) searches and the recently announced TiVo KidZone. KidZone gives parents an easy way to safeguard their kids from video content while also helping them discover and choose great educational and age-appropriate shows. The service is expected to launch in select Cox markets in the first half of 2007.
Tom Rogers, TiVo’s CEO, said, “We are excited to expand our presence in the cable industry by partnering with Cox, a clear leader in driving consumer adoption of the DVR. By combining Cox’s marketing prowess and top-quality customer service with TiVo’s superior technology and product offerings, we have unleashed a highly scalable way of delivering the best television viewing experience to its customers.”
The agreement also provides for Cox to distribute TiVo’s interactive advertising platform which enables an industry proven advertising solution that is seamlessly integrated with the award-winning TiVo subscriber experience. The new advertising relationship extends Cox Media’s leadership in the advanced advertising arena and further expands TiVo’s national advertising footprint. Cox Media is the advertising sales arm of Cox Communications.
Financial terms of the deal were not disclosed.