TIVO....interesting tech.
dailynews.yahoo.com
Wednesday June 14 2:37 PM ET
AOL Expands Deal With TiVo
LOS ANGELES (Reuters) - Leading Internet media provider
America Online Inc. (NYSE:AOL - news) on Wednesday said it
reached an agreement for TiVo Inc. (NasdaqNM:TIVO - news) to
offer subscribers of AOLTV service the ability to create their own
TV schedule and customize live television shows.
The three-year agreement also calls for AOL to take up to a $200
million stake in TiVo, which sells a VCR-like box that uses a
computer hard drive to record TV programs, in exchange for warrants
and additional TiVo shares.
The announcement sent TiVo shares surging by about 50 percent. In
afternoon trading the shares were up 10-3/4 at 32-5/16 on Nasdaq.
The company's shares have traded in a 52-week range of 15-3/4 to
78-3/4.
The deal would give TiVo the opportunity to increase its subscriber
base quickly, TiVo spokeswoman Rebecca Baer said. She also said
that AOL was making itself a strategic partner in TiVo by taking the
stake in the company.
The TiVo Personal TV Service digitally
records television shows, without videotape,
so consumers can watch what they want,
when they want to watch it. When the new
service becomes available AOLTV
subscribers using select set-top boxes will be
able to use features of the TiVo Service to
pause, slow motion, or instant replay live TV.
In addition, with the click of a button, users can tell TiVo to
automatically find and record their favorite programs every time they
air.
``The combined product will be a powerful tool in making television
richer and more entertaining,'' Baer said.
The new box offering both services -- AOLTV currently allows
subscribers to chat online as they watch TV -- is expected to be
available by early 2001. TiVo currently has about 36,000 subscribers
nationwide.
``We believe our agreement with AOL positions us to lead the
evolution of personal TV to the next level and begins to bring TiVo
closer to delivering the ultimate television experience,'' Mike
Ramsay, TiVo's chief executive officer, said in a statement.
Under the agreement, AOL and Sunnyvale, Calif.-based TiVo will
work together to develop a dual-purpose AOLTV-branded set-top
box and TiVo will become the exclusive provider of personal TV
features on these set-top boxes.
``Bringing TiVo's personal television features to AOLTV will be
another way we can offer our members the best possible interactive
television experience,'' said Barry Schuler, President of AOL
Interactive Services.
The deal expands upon the previous alliance between America
Online and TiVo, announced in August 1999. |
