Comcast Corp. and TiVo Inc. have reached a deal to develop a version of the TiVo digital-video-recorder service that will be available to Comcast subscribers by the end of 2006.
The deal signals a major change in strategy for TiVo. The company will license only its software to Comcast.
Historically the company has made deals that involved both hardware and software. But with DVR technologies offered in set-top boxes from Scientific-Atlanta and Motorola and the possibility looming that next-generation TV sets will be available with built-in DVRs, the company is looking to leverage the quality of its user interface. TiVo’s interactive advertising platform will also be deployed.
TiVo, which has suffered plenty of bad news in the past two months (beginning with the loss of a critical relationship with DirecTV), saw its stock jump nearly 50% within hours of the announcement.
The move should put to rest, at least for now, any forecasts of its impending demise.
Terms of the non-exclusive deal were not disclosed.
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