http://online.wsj.com/article_print/SB113134634029589862.html


By KEVIN J. DELANEY and NICK WINGFIELD 
Staff Reporters of THE WALL STREET JOURNAL
November 7, 2005 8:33 a.m.

Yahoo Inc. and TiVo Inc. reached an agreement to let users remotely 
program their TiVo digital video recorders from within Yahoo's Web 
site.

Down the line, TiVo users will be able to access traffic and weather 
information and their photos stored on Yahoo from the devices, under 
the agreement between the companies.

The deal between Yahoo and TiVo doesn't include provisions for TiVo 
users to view any video from Yahoo's Web site through the devices, 
according to a Yahoo spokeswoman.

TiVo users can already remotely program their DVRs from the Web to 
record television shows.

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News of the Yahoo-TiVo agreement was first reported on the Web site 
of the New York Times.

Under a partnership announced Monday, users of Yahoo's TV page 
starting today will be able to click on a record-to-TiVo button 
directly from a television program listing to remotely schedule 
recordings. And in the coming months, possibly before the end of the 
year, Yahoo's traffic and weather content, as well as its users' 
photos, will be viewable on televisions via TiVo's broadband service 
and screen menu.

Edward Lichty, TiVo's vice president of corporate strategy, said 
TiVo hopes the collaboration will set the foundation for a long-term 
relationship. The deal will give the DVR pioneer a way to 
potentially tap Yahoo's large user base and gain some much-needed 
new customers.

The Alviso, Calif.-based company has about 3.6 million subscribers 
but it accrued fewer new customers in the latest quarter than it did 
a year earlier, according to the company's financial report released 
in August. And though the company posted its first profit in its 
eight-year history during that quarter, some analysts question 
whether TiVo can continue to grow as satellite and cable companies 
develop their own DVR technologies that offer lower subscription 
fees.

The ability to let its subscribers access Yahoo's content from their 
televisions marks a significant development in the company's year-
old campaign to expand beyond basic digital video recording services 
to becoming more of an entertainment hub, Mr. Lichty said.

Bringing Internet access to the TV screen is nothing new. Most 
previous efforts – notably WebTV – were failures. Mr. Lichty thinks 
the Yahoo-TiVo offering will be different. "It's not about having a 
Web browser on your TV and having a keyboard on your lap. It'll 
still be focused on the TV experience and navigating with the remote 
control," Mr. Lichty said. "And this builds on existing use 
patterns. It doesn't require people to relearn anything."

Meanwhile, Sunnyvale, Calif.-based Yahoo is seeing tremendous growth 
as more people turn to the Internet for news, entertainment, 
communication, and other services. But the Internet giant is also 
under constant pressure from rivals Google Inc. and Microsoft Corp. 
to expand its offerings.

Time Warner Inc., Comcast Corp. and other cable and satellite 
companies, after years of delays, are now aggressively marketing 
DVRs to customers.

At the end of last quarter, there were about 8.3 million subscribers 
to DVR services in the U.S., according to Magna Global, a media 
research firm owned by Interpublic Group of Cos. About 85% of those 
users got their DVRs through cable and satellite companies, with the 
rest getting them as "standalone" DVRs from companies like TiVo, 
Magna estimates.

About 64% of TiVo's subscribers came to TiVo through a partnership 
with DirecTV Group Inc., the leading satellite-television provider, 
which TiVo has leaned on increasingly for its growth. DirecTV, 
though, has said it will soon stop marketing TiVo's service to its 
customers as it transitions to a DVR technology and service of its 
own making. The disintegrating relationship between TiVo and DirecTV 
has jolted TiVo investors, and led many executives to speculate 
whether TiVo can survive as an independent company.

Meanwhile, Yahoo plans to soon unveil new wireless services that 
take advantage of advanced networks and cellphones to provide 
features similar to those available on computers. Yahoo soon will 
introduce a cellphone that it will sell through a partnership with 
SBC Communications Inc., according to SBC executives. The handset 
will take another step toward linking wirelessly such cellphone 
services as music, photos and email with consumers' existing Yahoo 
accounts, address books and preferences.

Yahoo's cellphone plans come as Google is tailoring some popular 
Internet services for use on wireless devices. Starting today, for 
example, consumers using some types of cellphones will be able to 
access satellite maps wirelessly and scroll through them as they can 
on the Google Maps service.

The moves mark a further step in the evolution of cellphones from 
communications devices to minicomputers that can be used for email, 
Web browsing, music downloading and even watching TV, in addition to 
calls. (See related article3.)







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