Sony side of street

TiVo's stock soars on consumer products deal

HOLLYWOOD — Digital video recording service TiVo has landed a deal with Sony that will put the service in millions of the latter’s consumer products. TiVo stock closed up 21.76% Thursday to $5.54 on the news.

The seven-year deal is a huge expansion of TiVo’s relationship with Sony that began in 1999 with Sony taking an unknown minority equity stake in TiVo and agreeing to manufacture set-top boxes that combined the DirecTV satellite service with TiVo.

TiVo CEO Mike Ramsay estimated the company would generate upwards of $15 million in additional revenue during the first year of the deal.

“It’s really up to Sony in terms of what kinds of products they are going to deploy in the long term,” TiVo spokeswoman Rebecca Baer said. “It could range from including the recording capability in portable devices, in DVD players or in televisions themselves. Down the road, it could move beyond video recording into audio devices.”

New agreement is non-exclusive, meaning TiVo can still license its technology to other manufacturers. Much of TiVo’s revenue has been eaten up by the expense of designing set-top boxes and bringing them to market.

Subscriptions to TiVo’s service have steadily grown over the past several quarters and now stands at more than 200,000.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety

Loading