The agreement, which is non-exclusive, includes the development, marketing and distribution of the Internet-enabled set-top box, which will include a version of the TiVo service developed for the satellite TV service. DirecTV, however, will continue to offer subscribers its own set-top boxes. Financial terms of the deal were not disclosed.
DirecTV said it would market and sell the TiVo offering nationally to its entire customer base as part of its portfolio. Pricing and packaging would be announced at the launch of the product, scheduled for the second half of 2009.
DirecTV and TiVo first partnered in 2000 in offering DVRs to the satellite company's subscribers. The tight relationship unraveled over time and in 2005, DirecTV said it would start offering its own set-top boxes, leaving TiVo scrambling to find other service providers to carry its product.
Since then, TiVo has embraced the Internet, making a variety of Web services, such as RealNetworks' music service and Amazon.com's movie download service, available through its DVRs. In addition, the company has built out its software to make it easier for advertisers to reach subscribers based on viewing habits.
In addition, TiVo, which pioneered the DVR, has turned to the courts to protect it intellectual property. In 2004, for example, TiVo sued EchoStar, claiming the satellite TV company stole TiVo's digital video recorder technology for pausing, fast forwarding, and rewinding live TV shows. A U.S. District Court ruled against EchoStar, and a District Appeals Court is scheduled to hold a hearing this week to determine whether Dish is in contempt of the court's ruling and to determine damages.
This article was edited on 9/4 to clarify legal proceedings between TiVo and EchoStar.
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