New Speculation that a TiVo / Comcast Deal is Still Alive

USATODAY.com – Deal could allow Comcast to use TiVo’s software on DVRs USA Today is reporting that TiVo is close to an agreement with cable giant Comcast that would allow Comcast to run TiVo’s software on their boxes according to an unnamed source. The Wall Street Journal is also reporting a possible Comcast deal citing unnamed people “familiar with the matter.”

Neither Comcast or TiVo has commented on this new deal. It is worth noting, however, that in his last interview with USA Today, Mike Ramsay disputed a previously reported New York Times article that claimed that a Comcast deal had been close in the past but was killed when Ramsay wanted more money and more control over the boxes. At the time Ramsay had said that talks with cable operators were still ongoing.

“Q: How close did you and Comcast get?

A: Well, we’re still talking. We’re in discussions with cable companies. We have a variety of offerings for them. These kinds of deals can take months, years to develop because they have great strategic importance for both companies. We’re committed to developing those relationships no matter how long they take. If we thought the outcome was futile, we wouldn’t be doing it. There’s been no pulling back. In fact, it’s accelerating. “

Per the USA Today article, “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.”

This is interesting renewed speculation. A Comcast deal would be seen as a major victory for the battered company TiVo. Analysts have been negative on TiVo’s stock over the past year in large part due to the fact that TiVo is seen as losing exposure to the large DirecTV market.

Opening up Comcast’s 22 million subscribers to a TiVo subscription would provide significant exposure for the company’s technology and possibly significant revenue and bottom line earnings depending on the deal struck.

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