ReplayTV rewinds business plan (it's now a patent licensing company like Gemstar and Rambus)
news.cnet.com
By Sandeep Junnarkar
Staff Writer, CNET News.com
November 28, 2000, 5:45 a.m. PT
ReplayTV, which makes interactive digital video recorders for consumers, reversed its
course Tuesday by saying it will instead license its technology to cable providers and
other television-related companies.
The company, whose devices use hard drives instead of videotape to record and pause live
television, also said it will cut part of its staff. The New York Times reported Tuesday that
ReplayTV is cutting up to half of its 260 employees.
ReplayTV was not available for comment.
As part of its strategic shift, ReplayTV said it has replaced chairman
and chief executive officer Kim LeMasters. Anthony Wood, the
company's founder, will assume those roles.
In a related move, ReplayTV said it plans to stop making interactive digital recorder hardware in
the face of intense competition from a host of similar consumer products made by TiVo,
Microsoft's UltimateTV and America Online's interactive TV services. Instead, it will license its
technology to set-top box makers and other TV companies, which can use the technology to
offer digital video recording and video-on-demand services.
ReplayTV also hopes to offer targeted advertising, programming guides and e-commerce
services.
The shift in focus away from the consumer sector comes at an awkward time--right as the
biggest shopping season begins. But the new CEO emphasized that the company's strategic
shift will not affect its customers, adding that it will continue to provide services for people who
already own its digital recorders.
ReplayTV also said it will dedicate fewer resources to its own brand of digital recorders but will
continue its relations with third-party makers like Panasonic's ShowStopper. |
