Quick Quotes

TiVo, Yahoo collaborate on TV recording

Monday, November 7, 2005; 1:29 PM

NEW YORK (Reuters) - TiVo Inc. <TIVO.O> and Yahoo Inc. <YHOO.O> on Monday launched a service that allows TiVo users to program their digital video recorders remotely using Yahoo's television information Web sites.

While terms of the deal were not disclosed, the companies said that in the coming months TiVo and Yahoo would also offer Yahoo services like photos, traffic, and weather as part of their collaboration.

Shares of TiVo rose 6 percent on Nasdaq, but some analysts questioned whether the deal would drive subscriptions for TiVo, whose DVR service lets users pause live TV and save massive amounts of programming.

Cable and satellite companies are increasingly offering their own video recording services, leading to concerns about TiVo's growth prospects.

"I don't see how it's going to drive new incremental subscribers for TiVo. I don't see how it's going to drive incremental revenue for TiVo," said analyst April Horace of Hoefer & Arnett, who added that the deal still appeared "incrementally positive" for the company.

TiVo's latest results in August showed that additions to its fee-based TV recording service in the second quarter fell to 254,000 subscribers from 288,000 a year earlier.

Key to that drop was a 5 percent decline in new customers from DirecTV Inc. <DTV.N>, its biggest source of new customers, which has said it plans to cease marketing TiVo's product.

In the Yahoo deal, TiVo hopes it can keep new subscribers and win over more by increasing its offerings and making the service more convenient for users.

Starting Monday, users can log onto any computer and use the Yahoo site to set TiVo to record TV programs and events.

Subscribers with a TiVo Series2 box and a standard Yahoo ID may use the service, the companies said.

Yahoo TV offers such information as show times, program descriptions and cast photographs as well as exclusive content like information from the "Entertainment Tonight" TV program and Mark Burnett Productions, which produces "The Apprentice,"

TiVo shares were up 29 cents at $5.41 on Nasdaq. Yahoo was down 31 cents at $37.56.

(Additional reporting by Nicole Volpe)

Full Legal Notice
© 2005 Reuters