TiVo may strain relations

TiVo's recent plan to make TV shows and movies downloadable onto the fifth-generation iPod and Sony PSP may who hope to develop revenue from the digital distribution. Several TV and studio execs are considering legal action against TiVo, according to a report from the Daily Variety. An NBC Universal spokesman said "TiVo appears to be acting unilaterally, disregarding established rights of content owners to participate in decisions regarding the distribution and exploitation of their content. This unilateral action creates the risk of legal conflict instead of contributing to the constructive exploitation of digital technology that can rapidly provide new and exciting experiences for the consumer." The new service is expected to be available by early next year, and software necessary to utilize it is expected to cost between $15-30.

The service will undercut ABC's current offering of video content online that makes movies and videos available for $2 each, which can already be downloaded and viewed on Apple's fifth-generation iPod player. TiVo's service could reduce appeal of other video-on-demand offers, and cut into the DVD business, according to the report. The number of current users who own a stand-alone TiVo box and who also own a home-networking system is roughly 300,000, while the total number of TiVo subscribers totals 1.3 million.

by MacNN Staff