TiVo Locks Up Cox
By Steve Donohue -- Multichannel News, 8/24/2006 10:53:00 AM MT
TiVo stock jumped about 6% Thursday after it cut a deal with Cox Communications to distribute its digital-video-recorder software and interactive-advertising service on the MSO’s generic set-tops from Scientific Atlanta and Motorola.
The agreement is a big boost for TiVo CEO Tom Rogers, who scored a similar agreement with Comcast in March 2005.
TiVo’s biggest challenge now is to integrate its software with SA and Motorola set-tops. It has been more than one year since Comcast cut its TiVo deal, and the MSO has yet to roll out the service.
Cox spokesman David Grabert said Cox will initially deploy TiVo on Motorola set-tops in early 2007. TiVo will be available on SA set-tops at a later date. Comcast has a similar deployment schedule with TiVo.
Cox currently charges its customers $9.95 monthly for generic DVR service running on SA and Motorola set-tops, in addition to the fees it charges subscribers for digital cable. Grabert said Cox hasn’t yet determined what it will charge for TiVo service, but it would likely cost customers a $3-$5 monthly premium compared with what the MSO charges for its generic DVRs.
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