Comcast and TiVo near a deal
03-15-05, 06:53 AM
#1
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Comcast and TiVo near a deal
TiVo is close to an agreement with Comcast that would enable the No. 1 cable operator to use TiVo's software and easy-to-use interface to power its digital video recorders (DVRs), according to a person briefed on their negotiations.
Exact terms, including prices, could not be determined. Comcast, which has a potential market of 22 million subscribers for TiVo service, declined to comment. TiVo didn't return calls.
The deal, if done, would be strategically important for TiVo, which had about 3 million subscriptions at the end of January.
Its stock has fallen about 60% in the past year, closing Monday at $3.83, as investors questioned its growth prospects.
About 62% of its subscriptions are from a service arrangement with DirecTV to run DVR-equipped satellite receivers. But the satellite broadcaster, now run by News Corp., is preparing to introduce an in-house DVR service as an alternative to TiVo. EchoStar also provides its own DVR service to subscribers. Meanwhile, cable operators, with 73.6 million basic subscribers, have begun offering digital cable boxes equipped with DVRs to keep customers from switching to satellite.
DVRs make it easy for viewers to record TV shows on a hard drive and give them the flexibility to speed through ads and pause live programs.
Many feared that TiVo's service, which costs about $13 a month, or $300 for the life of the DVR, would be eclipsed by lower-priced cable and satellite-provided DVRs that are built into cable and satellite boxes.
TiVo has struggled to cut a deal to jump on the cable bandwagon. After years of inconclusive talks, TiVo recently told investors that it was prepared to go it alone, offering TiVo as a premium service with features others couldn't match.
The failure to cut a breakthrough deal contributed to major TiVo changes recently. TiVo President Marty Yudkovitz resigned, and CEO Michael Ramsay said he would relinquish that job — but remain chairman — after the board picks a successor.
Last week, TiVo reported a net loss of $33.7 million on revenue of $59.4 million for the quarter that ended Jan. 31.
But Ramsay has promised shareholders that TiVo would be profitable this year.
As for Comcast, a deal with TiVo could make it easier to sell digital cable services — one of its top priorities. Comcast collects an additional $10 a month or so for digital. In addition, it enables customers to view Comcast's video-on-demand offerings.
Last week, Comcast struck a deal with Motorola to buy $1 billion worth of set-top decoders equipped with state-of-the-art technology, including DVRs. That was the largest such order ever for Comcast.
Separately, Ramsay reported in a Securities and Exchange Commission filing that he was awarded 250,000 TiVo option grants Friday for $3.78 a share.
Exact terms, including prices, could not be determined. Comcast, which has a potential market of 22 million subscribers for TiVo service, declined to comment. TiVo didn't return calls.
The deal, if done, would be strategically important for TiVo, which had about 3 million subscriptions at the end of January.
Its stock has fallen about 60% in the past year, closing Monday at $3.83, as investors questioned its growth prospects.
About 62% of its subscriptions are from a service arrangement with DirecTV to run DVR-equipped satellite receivers. But the satellite broadcaster, now run by News Corp., is preparing to introduce an in-house DVR service as an alternative to TiVo. EchoStar also provides its own DVR service to subscribers. Meanwhile, cable operators, with 73.6 million basic subscribers, have begun offering digital cable boxes equipped with DVRs to keep customers from switching to satellite.
DVRs make it easy for viewers to record TV shows on a hard drive and give them the flexibility to speed through ads and pause live programs.
Many feared that TiVo's service, which costs about $13 a month, or $300 for the life of the DVR, would be eclipsed by lower-priced cable and satellite-provided DVRs that are built into cable and satellite boxes.
TiVo has struggled to cut a deal to jump on the cable bandwagon. After years of inconclusive talks, TiVo recently told investors that it was prepared to go it alone, offering TiVo as a premium service with features others couldn't match.
The failure to cut a breakthrough deal contributed to major TiVo changes recently. TiVo President Marty Yudkovitz resigned, and CEO Michael Ramsay said he would relinquish that job — but remain chairman — after the board picks a successor.
Last week, TiVo reported a net loss of $33.7 million on revenue of $59.4 million for the quarter that ended Jan. 31.
But Ramsay has promised shareholders that TiVo would be profitable this year.
As for Comcast, a deal with TiVo could make it easier to sell digital cable services — one of its top priorities. Comcast collects an additional $10 a month or so for digital. In addition, it enables customers to view Comcast's video-on-demand offerings.
Last week, Comcast struck a deal with Motorola to buy $1 billion worth of set-top decoders equipped with state-of-the-art technology, including DVRs. That was the largest such order ever for Comcast.
Separately, Ramsay reported in a Securities and Exchange Commission filing that he was awarded 250,000 TiVo option grants Friday for $3.78 a share.
Although I hate the fact DirecTV is parting ways with TiVo, I'm happy to see this should keep TiVo around for a while.
03-15-05, 08:55 AM
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Originally Posted by Michael Corvin
Wow!
Good for Tivo. Bad for people that hate the cable companies.
Good for Tivo. Bad for people that hate the cable companies.
Why is it bad? I don't have a LOS to the fucking satellite, so I'm stuck with Comcast, and I hate Comcast. The DVRs Comcast currently use pale in comparison to TIVO. I'll be more than happy to pick up an HD TIVO for my Comcast cable.
03-15-05, 09:33 AM
#4
DVD Talk Hall of Fame
Hopefully Tivo will not sign an exclusive agreement with Comcast and Tivo will sign with other cable companies, like Cox, like I have said they should do since they DirecTV announced their split from Tivo. Or better yet they will sign an agreement withh Atlanta Scientific and allow their software to be used by most cable companies as they need to get to as many people as possible.
03-15-05, 09:55 AM
#7
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Well, I for one hope that DirecTivo can be revived. You KNOW that the DirecTV DVR is going to be just as crapping as the ones Comcast and Cox now use. I'm glad I have my DirecTivo, but I'd like to have continued support and upgraded for the hardware I have (Home Media option please?).
Well in any case, this is good news for Tivo. I hate it when companies with great ideas go down the crapper for no good reason. Tivo is one of the best technological innovations in the last 10 years.
Well in any case, this is good news for Tivo. I hate it when companies with great ideas go down the crapper for no good reason. Tivo is one of the best technological innovations in the last 10 years.
03-15-05, 09:55 AM
#8
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http://biz.yahoo.com/prnews/050315/phtu019_2.html
Comcast and TiVo Announce Strategic Partnership
Tuesday March 15, 9:00 am ET
- Multi-Year Agreement to Make the TiVo Service Available to Comcast Customers
PHILADELPHIA, and ALVISO, Calif., March 15 /PRNewswire/ -- Comcast (Nasdaq: CMCSA - News, CMCSK - News), the nation's leading provider of cable, entertainment and communications products and services, and TiVo Inc. (Nasdaq: TIVO - News), the creator of and a leader in television services for digital video recorders (DVRs), today announced that the companies have reached an agreement to make the TiVo® service and advertising capability widely available to Comcast customers in the majority of its markets around the country.
Under the terms of the agreement, Comcast and TiVo will work together to develop a version of the TiVo service that will be made available on Comcast's current primary DVR platform. New software will be developed by TiVo and will be incorporated into Comcast's existing network platforms. The new service will be marketed with the TiVo brand, and is expected to be available on Comcast's DVR products in a majority of Comcast markets in mid-to-late 2006.
This long-term, non-exclusive partnership will provide millions of Comcast customers with the opportunity to choose the TiVo service, including TiVo's award-winning user interface and features like Season Pass(TM) and WishList(TM), as an additional option. In addition, the service will showcase TiVo's home networking, multimedia, and broadband capabilities.
"We are focused on providing our customers with a 21st Century television experience. TiVo has revolutionized the way consumers watch and access home entertainment. By partnering with TiVo, we are continuing to deliver technology that enables our customers to watch what they want when they want on TV. This agreement also reflects our commitment to work with leading technology providers to offer customers more value and choice in their home entertainment experience," said Brian Roberts, Chairman and CEO, Comcast Corporation. "Customers love the ease and convenience of our current DVR service, and we look forward to working with TiVo to enhance that service and offer customers the best-in-class DVR experience."
"We are very excited that we will be able to offer TiVo to our customers along with our Video On Demand, High Definition and other premium services that add such great entertainment value. The strong TiVo brand, the clear track record of customer loyalty it has and its cutting edge features make this a terrific partnership and exciting new product for Comcast," added Steve Burke, president of Comcast Cable and COO of Comcast.
"The chance to combine TiVo's unmatched DVR features and innovative advertising capabilities with the power of Comcast's advanced digital television services presents tremendous opportunities," said Mike Ramsay, Chairman and CEO of TiVo. "Broad deployment to millions of Comcast homes nationwide will enhance TiVo's recurring revenues. Together, both companies will work to offer customers the best and most convenient premium television service."
"It is very important that TiVo has found a way to work with the nation's largest cable operator on a cooperative basis to develop a state-of-the-art TiVo Service, fully integrated with a cable set-top box, that will make TiVo available to millions of cable viewers. By making TiVo available, Comcast once again shows that it is leading the way in providing advanced digital services, such as video-on-demand, to television viewers. This is a real milestone for TiVo and for the cable industry, but most importantly it is a milestone for television viewers," said Tom Rogers, vice chairman of TiVo.
As an extension of the relationship, TiVo and Comcast will make TiVo's interactive advertising platform available across Comcast's customer base without interrupting the award-winning TiVo subscriber experience.
Financial terms of the deal were not disclosed.
About Comcast
Comcast Corporation (Nasdaq: CMCSA - News, CMCSK - News; http://www.comcast.com) is the nation's leading provider of cable, entertainment and communications products and services. With 21.5 million cable customers and 7 million high-speed Internet customers, Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content.
The Company's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, Outdoor Life Network, G4, International Channel Networks, TV One and four Comcast SportsNets. The Company also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.
About TiVo Inc.
Founded in 1997, TiVo, a pioneer in home entertainment, created a brand new category of products with the development of the first digital video recorder (DVR). Today, TiVo continues to revolutionize the way consumers watch and access home entertainment by making TiVo DVR the focal point of the digital living room, a center for sharing and experiencing television, music, photos and other content. TiVo connects consumers to the digital entertainment they want, where and when they want it. TiVo is based in Alviso, California.
NOTE: TiVo and the TiVo Logo are registered trademarks of TiVo Inc. in the United States and other jurisdictions. Season Pass and WishList are trademarks of TiVo Inc. All rights reserved.
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the expected future deployment and availability of the TiVo service and related advertising features to Comcast customers and other matters that involve expectations or intentions. Forward- looking statements generally can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. These factors include technology integration issues and changes, new developments in either company's product and service offerings, and changes in business strategy or development plans, as well as the other potential factors described in both TiVo Inc.'s and Comcast Corporation's public reports filed with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Each company disclaims any obligation to update these forward-looking statements.
Comcast and TiVo Announce Strategic Partnership
Tuesday March 15, 9:00 am ET
- Multi-Year Agreement to Make the TiVo Service Available to Comcast Customers
PHILADELPHIA, and ALVISO, Calif., March 15 /PRNewswire/ -- Comcast (Nasdaq: CMCSA - News, CMCSK - News), the nation's leading provider of cable, entertainment and communications products and services, and TiVo Inc. (Nasdaq: TIVO - News), the creator of and a leader in television services for digital video recorders (DVRs), today announced that the companies have reached an agreement to make the TiVo® service and advertising capability widely available to Comcast customers in the majority of its markets around the country.
Under the terms of the agreement, Comcast and TiVo will work together to develop a version of the TiVo service that will be made available on Comcast's current primary DVR platform. New software will be developed by TiVo and will be incorporated into Comcast's existing network platforms. The new service will be marketed with the TiVo brand, and is expected to be available on Comcast's DVR products in a majority of Comcast markets in mid-to-late 2006.
This long-term, non-exclusive partnership will provide millions of Comcast customers with the opportunity to choose the TiVo service, including TiVo's award-winning user interface and features like Season Pass(TM) and WishList(TM), as an additional option. In addition, the service will showcase TiVo's home networking, multimedia, and broadband capabilities.
"We are focused on providing our customers with a 21st Century television experience. TiVo has revolutionized the way consumers watch and access home entertainment. By partnering with TiVo, we are continuing to deliver technology that enables our customers to watch what they want when they want on TV. This agreement also reflects our commitment to work with leading technology providers to offer customers more value and choice in their home entertainment experience," said Brian Roberts, Chairman and CEO, Comcast Corporation. "Customers love the ease and convenience of our current DVR service, and we look forward to working with TiVo to enhance that service and offer customers the best-in-class DVR experience."
"We are very excited that we will be able to offer TiVo to our customers along with our Video On Demand, High Definition and other premium services that add such great entertainment value. The strong TiVo brand, the clear track record of customer loyalty it has and its cutting edge features make this a terrific partnership and exciting new product for Comcast," added Steve Burke, president of Comcast Cable and COO of Comcast.
"The chance to combine TiVo's unmatched DVR features and innovative advertising capabilities with the power of Comcast's advanced digital television services presents tremendous opportunities," said Mike Ramsay, Chairman and CEO of TiVo. "Broad deployment to millions of Comcast homes nationwide will enhance TiVo's recurring revenues. Together, both companies will work to offer customers the best and most convenient premium television service."
"It is very important that TiVo has found a way to work with the nation's largest cable operator on a cooperative basis to develop a state-of-the-art TiVo Service, fully integrated with a cable set-top box, that will make TiVo available to millions of cable viewers. By making TiVo available, Comcast once again shows that it is leading the way in providing advanced digital services, such as video-on-demand, to television viewers. This is a real milestone for TiVo and for the cable industry, but most importantly it is a milestone for television viewers," said Tom Rogers, vice chairman of TiVo.
As an extension of the relationship, TiVo and Comcast will make TiVo's interactive advertising platform available across Comcast's customer base without interrupting the award-winning TiVo subscriber experience.
Financial terms of the deal were not disclosed.
About Comcast
Comcast Corporation (Nasdaq: CMCSA - News, CMCSK - News; http://www.comcast.com) is the nation's leading provider of cable, entertainment and communications products and services. With 21.5 million cable customers and 7 million high-speed Internet customers, Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content.
The Company's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, Outdoor Life Network, G4, International Channel Networks, TV One and four Comcast SportsNets. The Company also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.
About TiVo Inc.
Founded in 1997, TiVo, a pioneer in home entertainment, created a brand new category of products with the development of the first digital video recorder (DVR). Today, TiVo continues to revolutionize the way consumers watch and access home entertainment by making TiVo DVR the focal point of the digital living room, a center for sharing and experiencing television, music, photos and other content. TiVo connects consumers to the digital entertainment they want, where and when they want it. TiVo is based in Alviso, California.
NOTE: TiVo and the TiVo Logo are registered trademarks of TiVo Inc. in the United States and other jurisdictions. Season Pass and WishList are trademarks of TiVo Inc. All rights reserved.
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, the expected future deployment and availability of the TiVo service and related advertising features to Comcast customers and other matters that involve expectations or intentions. Forward- looking statements generally can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. These factors include technology integration issues and changes, new developments in either company's product and service offerings, and changes in business strategy or development plans, as well as the other potential factors described in both TiVo Inc.'s and Comcast Corporation's public reports filed with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Each company disclaims any obligation to update these forward-looking statements.
03-15-05, 10:20 AM
#10
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Originally Posted by Red Dog
Why is it bad? I don't have a LOS to the fucking satellite, so I'm stuck with Comcast, and I hate Comcast. The DVRs Comcast currently use pale in comparison to TIVO. I'll be more than happy to pick up an HD TIVO for my Comcast cable.
03-15-05, 10:25 AM
#11
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Originally Posted by Michael Corvin
Just another reason to jack up rates to their already overpriced service.
It's not overpriced if you regularly threaten to go to satellite (even if that is not an option).
03-15-05, 10:45 AM
#12
DVD Talk Hall of Fame
Originally Posted by Michael Corvin
Just another reason to jack up rates to their already overpriced service.
03-15-05, 11:01 AM
#13
Retired
Originally Posted by Red Dog
Why is it bad? I don't have a LOS to the fucking satellite, so I'm stuck with Comcast, and I hate Comcast. The DVRs Comcast currently use pale in comparison to TIVO. I'll be more than happy to pick up an HD TIVO for my Comcast cable.
Tivo going to Comcast makes it that much less likely that DTV will continue to support us, and more likely that they'll just give us (or makes us buy) they're new DVR box, which will probably suck.
And I'd go without TV before I went back to comcast and their absurd prices.
03-15-05, 12:13 PM
#14
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Originally Posted by Josh Hinkle
And I'd go without TV before I went back to comcast and their absurd prices.
03-15-05, 12:45 PM
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I still don't get the cost argument. To get the same channels (and equipment: HD-DVR) I have with Comcast on DirecTV, I would pay at least $15 more/month with DirecTV. Plus that is not including paying for the actual hardware.
Granted the HD-TIVO is a far superior product and I would die to be able to get Sunday Ticket and Mega March Madness, but again, you do pay extra for those too. Of course, Comcast has On Demand, which, while I don't use often, is pretty cool and free (except for HD stuff).
Granted the HD-TIVO is a far superior product and I would die to be able to get Sunday Ticket and Mega March Madness, but again, you do pay extra for those too. Of course, Comcast has On Demand, which, while I don't use often, is pretty cool and free (except for HD stuff).
03-15-05, 12:59 PM
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Originally Posted by Michael Corvin
Wow!
Good for Tivo. Bad for people that hate the cable companies.
Good for Tivo. Bad for people that hate the cable companies.
03-15-05, 01:19 PM
#17
Retired
Originally Posted by Red Dog
I still don't get the cost argument. To get the same channels (and equipment: HD-DVR) I have with Comcast on DirecTV, I would pay at least $15 more/month with DirecTV. Plus that is not including paying for the actual hardware.
I called when I was thinking of going to satellite about a year ago, and all they would offer me was 6 months free HBO, showtime, etc. They couldn't come near to matching the price, even for just 6 months.
I guess the prices are similar if you want all the extra movie channels and crap. But I have no need for that ever, or HD any time soon, so the price difference is ridiculous.
Plus, even if they did give deals, why hassle calling every 6 months and threatening to go satellite instead of just going when you have that option available?
03-15-05, 01:37 PM
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Originally Posted by Josh Hinkle
Standard digital on comcast was costing me $63 a month, the basic directTV with local costs me $42.99 a month (was 29.99 for 6 months, then 39.99 for a while, increased rates $3 this past bill).
I called when I was thinking of going to satellite about a year ago, and all they would offer me was 6 months free HBO, showtime, etc. They couldn't come near to matching the price, even for just 6 months.
I guess the prices are similar if you want all the extra movie channels and crap. But I have no need for that ever, or HD any time soon, so the price difference is ridiculous.
Plus, even if they did give deals, why hassle calling every 6 months and threatening to go satellite instead of just going when you have that option available?
I called when I was thinking of going to satellite about a year ago, and all they would offer me was 6 months free HBO, showtime, etc. They couldn't come near to matching the price, even for just 6 months.
I guess the prices are similar if you want all the extra movie channels and crap. But I have no need for that ever, or HD any time soon, so the price difference is ridiculous.
Plus, even if they did give deals, why hassle calling every 6 months and threatening to go satellite instead of just going when you have that option available?
I pay $63 total for digital + HBO (12 ch) + SHO (10 ch) + HD + HD-DVR. Not to mention I can split the signal and run analog lines (at no more charge) to my Replay-TVs and bedroom TV.
I would pay something around $80 with DirecTV for that (at least acc'd to the rates on their website).
03-15-05, 01:43 PM
#21
Retired
I can see that, you made out great, at least until they stop offering you deals. 
It just doesn't apply for me as best I could get at the time was $63 for standard digital with HBO and showtime. Plus I live by myself and have no second TV or any need for one.
But generally I'm not willing to call and hassle to get a deal. If a company doesn't just simply offer a price I think is reasonable, they don't get my business.
It just doesn't apply for me as best I could get at the time was $63 for standard digital with HBO and showtime. Plus I live by myself and have no second TV or any need for one.
But generally I'm not willing to call and hassle to get a deal. If a company doesn't just simply offer a price I think is reasonable, they don't get my business.
03-15-05, 01:51 PM
#22
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Originally Posted by Josh Hinkle
I can see that, you made out great, at least until they stop offering you deals.
With the # of satellite users steadily increasing, I'm not particularly concerned.
DirecTV is a great product, and I would get it in a heartbeat if I could, but cost is certainly not one of the reasons why (as you can see, for me, it would be a negative). Fortunately, DIRECTIVO was one reason why, so this news is obviously good for me.
03-15-05, 01:54 PM
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I currently have Cox cable, and it's $121 (including internet). It works out to like $80/month for the digital cable on two TVs. I've found the picture quality to be poor, and no two-tuner DVR.
DirecTV would be about $60 for 3 TVs, plus a one time $50 charge for a DirecTivo.
DirecTV would be about $60 for 3 TVs, plus a one time $50 charge for a DirecTivo.
03-15-05, 01:59 PM
#24
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Thread Starter
Originally Posted by rfduncan
Well, I for one hope that DirecTivo can be revived. You KNOW that the DirecTV DVR is going to be just as crapping as the ones Comcast and Cox now use. I'm glad I have my DirecTivo, but I'd like to have continued support and upgraded for the hardware I have (Home Media option please?).