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DirecTV sells its equity stake in TiVo

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DirecTV sells its equity stake in TiVo

Old 06-08-04, 05:27 PM
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DirecTV sells its equity stake in TiVo

http://news.com.com/DirecTV+sells+it...l?tag=nefd.top

DirecTV on Tuesday said it has sold its equity stake in TiVo, further fueling speculation that its relationship with the satellite TV provider has grown murky.

DirecTV spokesman Robert Mercer said the sale was in line with a policy of selling assets not central to its strategy, and that DirecTV still values TiVo's digital video recorder service.

"We have sold our equity stake in TiVo," Mercer said. "Our relationship with TiVo is strong, and they are an important part of our product lineup."

TiVo, which counts DirecTV as its biggest source of new subscribers, has said its contract to supply DirecTV with DVRs runs through 2007.

News of the sale comes four days after Eddy Hartenstein, vice chairman of DirecTV, quit TiVo's board to devote more time to his DirecTV duties.

TiVo shares fell $1.09, or 14.5 percent, to close at $6.41 on the Nasdaq, where it was among the percentage loss leaders.
Oh, crap. A sign of bad things to come, or just everyday business blown out of proportion?
Old 06-08-04, 05:38 PM
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News of the sale comes four days after Eddy Hartenstein, vice chairman of DirecTV, quit TiVo's board to devote more time to his DirecTV duties.
My guess would be that these two events happening together *do* indicate a change of long-term plans...
Old 06-08-04, 05:43 PM
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Mother f'ers better not mess with my DrecTivo.
Old 06-08-04, 05:52 PM
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Seems like DirecTV has been slowly heading away from TiVo in babysteps and here's another one.

I just hope they don't decide to replace the software on existing units with some DirecTV creation.
Old 06-08-04, 06:00 PM
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so what would this mean for all of their subscribers who only have DTIVOs for boxes if they were to terminate the service in the future? would all the boxes just become landfill? I was about to purchase 2 more units and would like to hear a little more on this.

Last edited by ChrisHicks; 06-08-04 at 06:02 PM.
Old 06-08-04, 06:26 PM
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This kind of baffles me. The only thing I can think is that DirecTV is going to start offering their own DVR systems. Tivo is, by far, the market leader in DVRs. I don't get why you'd move away from them, unless you are going to jump into that arena.
Old 06-08-04, 06:39 PM
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Are the still the market leaders? I have read that with all the cable companies going with other products they had lost a lot of market share. Oh well we will see I love my Direct Tivo and have yet to meet a person who does not like it.
Old 06-08-04, 07:01 PM
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This doesn't surprise me. I'm sure they'll soon have a competing DVR out. I expect the cable companies and DirecTV to use their monopoly position within their respective markets to squeeze out third parties like TiVO, just as Microsoft does when it bundles software for "free" with Windows.
Old 06-08-04, 08:28 PM
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The catch is Rupert Murdoch own a competing PVR technology, which you will likely start seeing on DTV.

Under its contract with DirecTV, which runs through February 2007, TiVo supplies digital video recorders to DirecTV subscribers. But a DirecTV spokesman said that TiVo doesn't have an exclusive lock: The satcaster can sell its subscribers competing DVRs such as the model from NDS, owned by DirecTV parent company News Corp.

But because News Corp. owns NDS, analysts say DirecTV could tempt subscribers by giving the service away as a freebie, tacking on monthly fees only later when customers are in thrall to the seductiveness of a DVR.
Old 06-08-04, 11:11 PM
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Originally posted by Deftones, Esq
This kind of baffles me. The only thing I can think is that DirecTV is going to start offering their own DVR systems. Tivo is, by far, the market leader in DVRs. I don't get why you'd move away from them, unless you are going to jump into that arena.
Exactly. It probably costs DirectTV a pretty penny per unit activated. Why not develop their own like DishNetwork and the cable companies and cut out the middle man to save money? Sounds like smart business to me.

Now, if this is what happens, Tivo is screwed. The standalone units would have to come down drastically in price to compete against the other companies and VCRs, and drop the monthly fees. I, for one, wouldn't mind seeing this happen.
Old 06-08-04, 11:26 PM
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It's going to happen, murdoch will bring out his own box. Rumoured also to be giving it away for free.

A PVR for free to kill the market.

He did it in the uk, and dominates that market now. He gave out set top boxes for free and hooked everyone in.
Old 06-09-04, 09:27 AM
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Originally posted by Michael Corvin


Now, if this is what happens, Tivo is screwed. The standalone units would have to come down drastically in price to compete against the other companies and VCRs, and drop the monthly fees. I, for one, wouldn't mind seeing this happen.


Yep - this is great news for non-satellite owners.
Old 06-09-04, 06:48 PM
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Bring back the microsoft dvr boxes! The dishplayer/UTV interface was/is the best.

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