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To: Z Analyzer who wrote (6552)	6/10/1999 1:11:00 AM
From: LK2	Respond to of 9256

More on digital TV recorders For Personal Use Only >>>>>>>>>>>>>>>>>> dailynews.yahoo.com Wednesday June 9 9:03 PM ET NBC invests in maker of digital television recorder By Scott Hillis LOS ANGELES (Reuters) - Broadcast network NBC said Wednesday it was taking a stake in TiVo Inc., maker of a digital television recorder that allows viewers to pause live TV, fast-forward through commercials and save up to 30 hours of programs. The TiVo device and a similar one made by Replay Networks, have alarmed broadcasters and advertisers because they allow viewers to pick and choose what they see and when they see it. Sold under the Philips brand, the TiVo device will enable enable viewers to pick the commercials they want to watch and skip the others, and record their favorite shows without complex codes or timetables. Among the devices' other features are on-screen menus and the ability to rewind a show while it is being recorded to review a missed segment. Some analysts have predicted a hard sell because the TiVo device, set to hit store shelves in July, carries a price tag of $499 for 14 hours of recording time or $999 for 30 hours. TiVo also charges a $9.95 monthly fee for the service, which includes free updates of its software. The device's hard drive is supplied by computer storage company Quantum Corp. (Nasdaq:QNTM - news) The TiVo device, however, has an edge over its rival with the TV industry. Sunnyvale, Calif.-based TiVo has been willing to work with TV programmers -- cable company Viacom Inc. (NYSE:VIA - news) is an investor -- allowing users to fast-forward through ads but not jump them completely, as rival Replay does. In exchange for its multimillion-dollar investment, NBC gains a foothold in a new technology that analysts say is set to reach millions of consumers over the next few years. The company did not specify how much it was investing in TiVo or give details on the size of its stake. Sales of devices such as TiVo's and Replay's are expected to reach 14 million units by 2004, said Josh Bernoff, a researcher with Forrester Research Inc. (Nasdaq:FORR - news) in Cambridge, Mass. ''NBC has a history of investing early on in new technologies, especially if those technologies that threaten to completely change network television,'' Bernoff said. While the traditional TV advertising could be rendered obsolete with the new devices, NBC, owned by General Electric , is poised to exploit a TiVo feature that tracks viewing habits and relays the data back to the company. TiVo boasts that its service can suggest TV programs and help viewers customize their playlists. But it could allow advertisers to more accurately target potential spenders. ''TiVo has established an innovative approach to digital recording in a way which maintains the integrity of our advertising model,'' Tom Rogers, president of NBC Cable, said in a statement. ''NBC will further enrich the television-viewing experience by developing new programming enhancements -- such as highly targeted promotional video -- and delivering them to viewers who record NBC television shows,'' the company said. NBC's programs will also join companies such as Home Box Office, the Weather Channel and the Movie Channel in getting first shot at viewers' eyeballs by being featured prominently on the TiVo start-up menu. The investment allows TiVo to fatten its war chest as it launches a marketing campaign to pitch a brand-new technology to consumers. ''TiVo needs capital, so at the very least any sort of investment is very welcome because it will take a lot of advertising to tell people what this is and why they need it,'' Forrester's Bernoff said. Reuters/Variety Earlier Stories NBC invests in digital set-top maker TiVo (June 9) Copyright © 1999 Reuters Limited and Variety <<<<<<<<<<<<<<<<<<