TiVo Said to Have Rejected Deal with Comcast to Become Preferred PVR Technology Supplier

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Today’s New York Times reports that TiVo was in advanced negotiations with Comcast to become their Personal Video Recorder technology provider as late as the Summer of 2004, but backed out of a possible deal because the per-subscriber revenue they would receive was not high enough. This information came to light along with news that Michael Ramsay, TiVo’s CEO, will be stepping down from that post but retaining his role as Chairman of the Board of Directors.

The article says that Ramsay was concerned about TiVo‘s long term viability if it became a software provider to large cable systems, as Liberate Technologies and OpenTV have done. The difference between TiVo and these other companies is that TiVo already had over 2 million direct subscribers. I’d argue that a company like TiVo could straddle the two markets until it became clear which one deserved more of the company’s resources.

It’s frustrating to a TiVo fan like myself to hear that a deal could have been made. I’d be thrilled if the soul of the TiVo became the basis for future home theater systems in homes around the world. Instead it’s quite possible that the system I’ve chosen for my stack will remain a niche player in the market as less elegant solutions become dominant. [ Registration required to read The New York Times article. ]


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