DirecTV looking to Dump TiVo

iWon Money & Investing DirecTV CEO Chase Carey was out today saying that DirecTV would be looking for “alternative” technology partners and that, “”as we go forward, the core of our initiatives won’t be geared to TiVo.” The tea leaves were already calling this one but it’s important to recognize how important the DirecTV relationship is to TiVo (Hence the 8% stock sell off today). In the second quarter, TiVo added 288,000 new customers, of which 225,000 were through DirecTV. DirecTV CEO Won’t Gear Future Initiatives to TiVo I will say that I absolutely love my HDTV TiVo and for what it’s worth think it’s a mistake on DirecTV’s part. They pay very little to TiVo for their PVR software on their machines and it is vastly better than any other HDTV PVR software on the market today with significantly better brand name recognition.

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  1. says:

    Investors need to wake up and realize the marriage is over. Tivo’s contract expires in 2007 and believe me DirectTv would not have sold 4.5 million of Tivo stock, if they intended to renew. Tivo is dead in the water without picking up new partners or modifying their business model. What Comcast and Directtv don’t realize is that by forcing Tivo won’t need a distribution channel in five years. They will rent bandwidth and compete as an independent “cable” company of their own. NBC still owns a big piece Tivo, as does AOL. Both would love to love to replace lost advertising revenue with pay tv. I’d pay at least $2 extra a month to have commercials completely removed from all Network programing. 250 Million Televisions x $2 per month = 6 Billion in sales.