TiVo, AOL Pact Gets Expanded
Staff -- TWICE, 2/12/2001
SUNNYVALE, CALIF. -TiVo said it has expanded its relationship with America Online with a multimillion-dollar marketing and promotional campaign.
Through the agreement, AOL will promote TiVo's personal video system and service on all of AOL Time Warner's online, print and television media properties. The campaign will focus on the personal television service.
TiVo will also receive $43.5 million in restricted funds, earmarked for working capital. TiVo will then reduce the exercise price of warrants held by AOL.
TiVo and America Online struck a strategic agreement that made TiVo an AOLTV programming partner, offering AOLTV subscribers access to features of TiVo's personal TV service. That agreement last June had America Online investing approximately $200 million in TiVo.
Meanwhile, TiVo said at CES that an AOL-TV receiver with TiVo recorder will be introduced in 2001. The company plans to soon deliver a service upgrade to users of early-generation devices. This will provide additional services now offered in DirecTV TiVo integrated IRDs from Sony and Philips.
The added features will include a wish list function that performs customized program searches by names, themes and so forth; an Overtime Scheduler that allows viewers to avoid missing the end of longer-than-expected live events, such as sports games; and additional parental control functions.
