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Best Buy, TiVo Form Strategic Alliance

Minneapolis – Best
Buy has entered into a strategic alliance with TiVo that will allow it to
deliver digital content services and advertising directly to homes.

The partners
described the alliance as “a major step intended to accelerate [Best Buy’s] evolution in digital media and better serve the needs of its customers.”

The new platform
will be used to convey educational and marketing messages, promote Best Buy’s private-label
line, and possibly sell products directly, the companies said. The conduit could
also carry the fruits of Fuse, Best Buy’s new media venture fund that is
investing in music, video, gaming and personal media management.

The move dovetails
with Best Buy’s plans to reconfigure its stores in a way that emphasizes
connected services.

As part of the
agreement, the partners plan to investigate development of a unique user
interface for TiVo DVRs purchased at Best Buy. The platform would allow the
chain to more effectively market its digital content services, offer consumers
advice and guidance on the digital home experience, and to provide an ongoing
dialogue with customers about its various retail offerings, the companies said.

“Best Buy and TiVo
together will open up a variety of new ways for consumers to get the most out
of their entertainment experience, have more digital content choices, and get
on-demand access to Best Buy’s trusted perspective in consumer electronics,”
said Chris Homeister, the retailer’s entertainment senior VP.

Barry Judge, Best
Buy’s chief marketing officer, added that the alliance “will open a new channel
of customer interaction” as consumers continue to find new ways to access
information and interact with trusted brands.

Best Buy said it
selected TiVo for its ability to deliver “millions of pieces of content …
spanning broadcast to broadband,” and to create a user experience based on a
single box, remote and user interface that’s easy and intuitive for consumers.

“We could not be
more gratified with this important relationship with Best Buy, which is the
world’s leader in retail consumer electronics,” said TiVo president/CEO Tom

Among the key
elements of the TiVo-Best Buy strategic alliance:

  • Best Buy will seek
    to drive increased TiVo DVR sales through significantly increased levels of
    marketing and merchandising;
  • TiVo and Best Buy
    plan to investigate development of user interface features for TiVo DVRs sold
    by Best Buy that will provide a means of ongoing dialogue with consumers and enable
    easy access to Best Buy’s growing assortment of digital services;
  • Best Buy will have
    access to TiVo’s full suite of interface solutions including consistent
    presence in the TiVo Showcase area of the TiVo platform, providing it with a
    powerful communication tool for marketing innovative products to the TiVo
    subscriber base;
  • TiVo intends to
    work with Best Buy’s private-label group to explore integration of its user
    interface, search, and other TiVo benefits to help further grow that consumer
    electronics line;
  • Best Buy and TiVo
    will investigate development of a series of consumer tips and insights that can
    be easily accessed for all kinds of digital home experiences, and Best Buy
    expects to explore opportunities with 
    TiVo to provide unique Best Buy solutions that enable viewers to take greater
    advantage of transactional opportunities through the television set; and
  • Best Buy expects
    to explore opportunities with TiVo to develop new features and offerings to
    ensure that the TiVo-Best Buy platform is at the forefront of new digital home
    entertainment offerings.