Netflix, TiVo team up for digital movie distribution
To further develop its position as a leading online provider of DVD rentals, Netflix Inc. has signed an agreement with digital entertainment provider TiVo Inc. to offer digital movies downloaded from Netflix for viewing on TiVo’s in-home digital video recorders.
The companies expect to make the service available after the end of this year, a spokeswoman for TiVo says. While TiVo Series 2 DVR boxes are already configured with USB ports to accept digital movie downloads, TiVo and Netflix must still develop the software to let the boxes connect with Netflix.com, the spokeswoman adds.
Under terms of the agreement, TiVo CEO Mike Ramsay has resigned from the Netflix board of directors to “avoid any potential conflicts of interest that might develop,” TiVo said in a statement.
Netflix, No. 30 in Internet Retailer`s Top 300 Guide to online retailers, will handle all negotiations with movie studios, the companies said.
To participate in the service, consumers will need a Series 2 TiVo DVR box, which consumers can currently order on TiVo.com for $99 after a $100 rebate. The companies haven’t yet decided whether existing TiVo subscribers will have to also subscribe to Netflix, or whether TiVo will offer the Netflix movies as a value-added service, the spokeswoman says.
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