TiVo Inc., the pioneer of digital TV recording, reached agreements to offer its video services to Comcast Corp.'s cable TV customers and to distribute music from RealNetworks Inc.
Comcast, the biggest U.S. cable TV company, will add TiVo features to existing set-top boxes and charge a fee for the added service, the companies said Monday in a statement. RealNetworks' Rhapsody music service will be offered later this year, according to TiVo, based in Alviso, Calif.
Chief Executive Officer Tom Rogers is adding new services and partners as DirecTV Group Inc., the largest U.S. satellite TV provider, phases out TiVo service in favor of its own digital video recorders. TiVo Monday also announced a deal to let subscribers download music videos from Music Choice.
"Once we roll out the Comcast product, we'll add to our total subscribers pretty quickly," Jeff Klugman, a TiVo senior vice president, said in an interview. TiVo has more than 4.4 million subscribers. Trials of software to upgrade cable set-top boxes began late last year and the service will start before midyear, he said.
Klugman said TiVo has a similar accord with cable company Cox Communications Inc. and is "in talks with all the major operators."
"This is an opportunity for Comcast to offer their subscribers a very sophisticated method for searching across broadcast TV and video-on-demand offerings," Klugman said. The price, to be set by Comcast, will be "modest," he said.
Shares of TiVo rose 16 cents, or 2.9 percent, to close at $5.61 Monday on the Nasdaq Stock Market. They have risen 7.5 percent in the past 12 months. Seattle-based RealNetworks, up 34 percent in the past year, gained 8 cents to $11.09. Comcast Class A shares fell 8 cents to $42.47. They have gained 56 percent in the past year.
RealNetworks' Rhapsody music service, which offers more than 3 million songs and videos, will be available to TiVo's broadband customers, Jim Denney, a TiVo vice president, said in an interview. TiVo will promote the service to subscribers when it is launched later this year, he said.
TiVo charges $12.95 to $19.95 a month for its services.
The deal with Music Choice is an extension of the TiVoCast service, Denney said, and won't involve an additional fee. Music Choice is a closely held venture owned by Microsoft Corp., Motorola Inc. and cable-TV companies including Phila-delphia-based Comcast.