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DirecTV and TiVo Inc. have extended their contract by three years, ensuring customers currently receiving TiVo through DirecTV can continue to use the service through February 2010, but not allowing DirecTV to sign new TiVo customers, Broadcasting & Cable writes.
Under the extension, satellite provider DirecTV will no longer market TiVo’s digital video recorders after February 2007, and will use its own DVR system made by parent company News Corp. instead. TiVo will continue to provide support and maintenance for the service.
The agreement represents a victory for TiVo president and CEO Tom Rogers, who came on board only one month before DirecTV - TiVo’s largest distributor - announced development of its own DVR system, writes MediaWeek. A setback in the deployment of the DirecTV boxes may have contributed to the contract extension.
Though financial terms were not disclosed, the contract did state that TiVo and DirecTV wouldn’t assert patent rights against one other.
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