Sony invests in new personal TV recorders from TiVo
Reuters Story - September 08, 1999 17:53
LOS ANGELES, Sept. 8 (Reuters) - TiVo Inc., the upstart maker of computer disk-based television recorders, on Wednesday said electronics giant Sony Corp. will take a minority stake in TiVo, make recorders and provide programs for them.
The size of the investment and extent of the manufacturing and content agreements were undisclosed while TiVo plans an initial public offering of stock, but the deal marks a big accomplishment for 2-year-old, Sunnyvale, Calif.-based TiVo after it launched its service just this year.
The TiVo personal video recorders, or PVRs, look like VCRs but use a computer hard disk instead of videotape to record shows. Because shows are stored on a disk, viewers effectively can pause live broadcasts, tailor a menu of shows to their own tastes, and record programs with a favorite theme or actor.
"This alliance further validates TiVo's personal television service as the next big thing in television," said TiVo Chief Executive Officer Mike Ramsey.
In a teleconference with reporters, Sony executives said product decisions about pricing and timing have yet to be ironed out, but they expect to have Sony PVRs using the TiVo system on the market sometime next year.
Sony unit Sony Pictures Entertainment will provide TV program and movies for the "showcase" section of TiVo's service, which highlights programs for viewers. Sony executives said game shows like "Wheel
of Fortune" and "Jeopardy" could be good fits for TiVo.
Meanwhile, consumer products retailer Best Buy said it will begin selling PVRs made by Sony rival Philips Electronics at stores throughout the United States for $499.00. Consumers then be charged a
$9.95 per month fee service fee by TiVo.
"We expect TiVo will be one of the hot gift items this holiday season," said Phil Schoonover, Best Buy senior vice president for consumer electronics.
TiVo expects to sell 5.5 million shares of stock to the public at a projected range of $11 to $13 a share, according to filings with the U.S. Securities and Exchange Commission.
TiVo has one rival in the market for PVRs, Replay Networks Inc. Investors in Replay include entertainment giants like Time Warner Inc. and Walt Disney Co. |
