TiVo, DirecTV to develop new set-top box

TiVo Inc is developing a new digital video recorder for satellite TV provider DirecTV, rekindling a strained relationship and potentially opening the door to boosting its subscribers.
The companies said on Wednesday that they had extended the current agreement. It now includes the development, marketing and distribution of a new high-definition DirecTV DVR featuring the TiVo service, with the product's launch expected in the second half of 2009.
Terms of the deal, which also includes an extension of intellectual property arrangements, were not disclosed.
DirecTV was once the biggest source of new subscribers to TiVo's television recording service. But the relationship soured in 2005 when DirecTV, the top U.S. satellite TV broadcaster, said it would no longer market TiVo's set-top boxes and would use its own system made by NDS Group Plc.
However, the companies did not sever their ties. In 2006, they extended their service and support agreement for three years, allowing customers to continue to receive maintenance and support for their TiVos.
Many of the satellite operator's more than 16 mln users still own TiVo set-top boxes, but their numbers have been dwindling.
At the end of the second quarter, TiVo had a total of 3.6 mln subscribers. Of that 1.7 mln were "TiVo-owned" — users who pay a monthly fee directly to the company.
TiVo will work with DirecTV to make a DVR product for customers with high-speed Internet service, that will support both companies' latest features.
DirecTV will continue to develop and offer its own portfolio of set-top boxes for both new and existing customers.