When TiVo and Netflix first announced their “partnership” on VOD it generated a lot of excitment for investors by the new revenues this could bring in. Unfortunately, Netflix couldn’t get the studios to play ball and it turned into vaporware. It doesn’t bother me that the partnership didn’t yield anything due to outside forces, but as a shareholder, I think that the very least that both companies could do would be to try and monetize the relationship before VOD emerges.

When TiVo starts supporting Netflix’s competitor instead of promoting their partnership, I have to question whether there was ever any substance to the TiVo Netflix “partnership” to begin with.

All along I have argued that TiVo and Netflix compliment each other well. Ultimately, it’s in Netflix best interests to distribute as many TiVo boxes as possible, if they really plan on using TiVo for VOD in the long run.

Netflix could rent TiVo boxes which would reduce shiping costs for them and TiVo could sell subscriptions for Netflix as repayment. Having Netflix rent the boxes would also give consumers an opportunity to try the box without having to commit to a one year obligation.

By partnering with Blockbuster, TiVo is signaling to investors that the Netflix partnership was nothing more then gossip and that they aren’t serious about utilizing their relationship with them. I know that Netflix and TiVo never agreed to promote their current services, but as a shareholder in both companies, I can’t help but feel a little deceived when I see TiVo sneaking around behind Netflix’s back.