Netflix, TiVo Follow Through With Streaming Plan
Posted on: Thursday, 30 October 2008, 12:35 CDT
Netflix Inc has announced that it is currently testing its “Watch Instantly” service for use on TiVo Inc’s popular digital recorder.
Under the partnership announced on Thursday, TiVo is set to offer Netflix’s service directly through many of the 800,000 broadband-connected digital devices by early December.
TiVo owners will be able to instantly stream from 12,000 movies and TV shows offered through Netflix’s service.
The collaboration fulfills a promise made in 2004 when DVR pioneer TiVo and online DVD rental trailblazer Netflix set out to develop a system for delivering video directly over the Internet.
By the time Netflix cleared the licensing hurdle and launched its Internet streaming service 21 months ago, the two companies had decided to pursue other partners. But the two companies, whose headquarters are about 18 miles apart, reconciled and continued with their plan.
"It's just a natural pairing and we are thrilled to finally be working with them," said Reed Hastings, Netflix's chief executive officer.
"I don't think there is any question we have gotten more frequently than, 'What about TiVo and Netflix working together?'" said TiVo CEO Tom Rogers.
Netflix continues to inch its way into streaming service from the PC to TV while facing challenges from the likes of Apple Inc and Amazon.com Inc.
Earlier this week Netflix announced a deal with Samsung Electronics Co. that will link its Blu-ray DVD players to Netflix Inc’s Internet streaming service.
In previous deals, Netflix has linked its services to other devices including a Blu-ray player from LG Electronics, and Microsoft Corp’s Xbox 360 videogame consoles. Also, a Silicon Valley startup, Roku Inc., has been selling a $100 device that streams Netflix's service to TVs for the past five months.
In recent years, TiVo has developed add-on features to help differentiate its DVRs from that of cable and satellite TV providers that often offer basic DVRs at cheaper prices.
TiVo is betting its ties to Netflix and other content providers like Amazon.com Inc. and Google Inc.’s YouTube will help distinguish its $299 DVRs from the generic recorders peddled by cable TV providers.
"The YouTube service on Tivo is extremely popular," said Tara Maitra, vice president and general manager of content services at TiVO, who said over 65 percent of its broadband-connected subscribers were taking advantage of the broadband features.
"I think everyone's trying to figure out the right business model, and they want to get their content on as many platforms as available," she said.
The growing selection of streaming devices could help boost Netflix's profits by causing subscribers to request fewer DVDs. Each DVD rental makes a round trip through the postal service that costs Netflix 84 cents, so fewer requests will lower expenses - just as management is striving to save money to offset slowing revenue growth.
---
On the Net:
Source: redOrbit Staff & Wire Reports
Related Articles
- Blockbuster and TiVo Announce Agreement to Make BLOCKBUSTER(R) OnDemand Available Through the TiVo Service and to Promote TiVo DVRs Throughout Retail Stores Nationwide
- TiVo, Netflix Team Up for Streaming Deal
- Market Potential for Hospital Services, Pharmaceuticals and Medical Devices in the US
- DIRECTV and TiVo to Launch New HD DIRECTV DVR With TiVo Service
- ChoiceStream Recommends a Better Solution for Netflix's Movie Service
- Statement By Mike Leavitt Secretary of Health and Human Services Regarding Senate HELP Committee Action on Dr. Andrew Von Eschenbach To Be New FDA Commissioner
- TiVo Announces Revolutionary New Service, TiVoCast; Bringing Broadband Video Content to the TV
- Video4Networks Releases Its Revolutionary Pay-Per-Minute Internet Video Services, Making Streaming Video More Accessible
- VitalStream Selects Radware's Application Delivery Solution for High Quality Streaming Media and Content Delivery Service
 |
 |
User Comments (0)
RSS Feeds