DIRECTV & TiVo Extend Deal By 3 Years
DIRECTV and TiVo announced today that they will extend their 'commercial agreement' by three years, which would seem to ensure that more than two million DIRECTV subscribers will continue to receive TiVo's DVR service during that time.
The extension will likely not help TiVo generate additional subscribers from the DIRECTV audience. (DIRECTV is now marketing its own DVR brand.) But it likely guarantees that the DVR service will hold onto its 2 million plus DIRECTV customers, which represent more than half of its total base. This is significant because some have speculated that DIRECTV would attempt to convert those subs to its own DVR service. The three-year agreement would seem to make that less likely.
The new agreement also includes assurances that the companies will not sue each other over DVR patent issues. TiVo has sued DIRECTV rival EchoStar, claiming the nation's second largest satellite service has infringed on its DVR patent. The case, which is currently on trial in Texas, is expected to go to the jury later today.
Bolstered by the sudden explosion of good news, TiVo's stock jumped eight percent yesterday.
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6 Comments:
"The new agreement also includes assurances that the companies will not sue each other over DVR patent issues. TiVo has sued DIRECTV rival EchoStar, claiming the nation's second largest satellite service has infringed on its DVR patent. (The case is currently on trial in Texas.)"
I have not seen this anywhere. Can you provide a link or proof? I would not expect Tivo would do this since if they win the case and pursue DTV then they would get far more than a few million from what they have today.
From today's press release from TiVo:
"In addition, TiVo and DIRECTV agree not to assert patent rights against the other."
Anonymous at 9:07 is asking you to do a google news search for him and prove that TiVO is suing Echostar.
Its true Anonymous, but i refuse to do your fact checking for you.
This portion is very interesting.
"with TiVo providing ongoing maintenance and support"
Tivo used to have control of software releases /updates for the Directv Tivo receivers until a few years back.
Does this mean Tivo now has this control back and may be able to offer updates to the software again (such as the HD model) and even the 6.2 non-HD models?)
Doubtful. I think the sentence means what it says. TiVo will provide support for existing set-top services and features. DIRECTV wants to keep its 2 million TiVo customers happy, but not at the expense of future DIRECTV DVR customers. Allowing TiVo to add occasional upgrades might discourage existing and future DVR subscribers from getting DIRECTV'S DVR.
"Allowing TiVo to add occasional upgrades might discourage existing and future DVR subscribers from getting DIRECTV'S DVR."
I read that to say.. Directv does not want people to see how bad their dvr really is.. lol
I agree with swanni on this one.. there will probably be no 6.x update to the HD Tivo!
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