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TiVo Shares Fall On News of Rival DVR Provider’s Revenue Jump

Aug 2, 2004  •  Post A Comment

Shares of digital video recorder maker TiVo sank more than 5 percent Monday after News Corp.’s rival DVR manufacturer NDS Group PLC reported that a contract with DirecTV Group helped fuel a fiscal fourth-quarter revenue jump.

TiVo shares fell 31 cents to $5.34 a share during light trading Monday.

News of NDS’s gain could spell bad news for TiVo, which has been at the center of speculation in recent months about its future growth. Much of TiVo’s growth in recent quarters has been tied to its partnership with DirecTV to provide DVR services to the satellite operator’s subscribers. Yet ever since DirecTV came under News Corp.’s control last December, speculation has abounded that the DirecTV-TiVo partnership would be in doubt as DirecTV would opt for keeping things in the News Corp. family by choosing NDS’s technology.

DirecTV officials have maintained the relation with TiVo is intact, even as they make clear they plan to rely on other providers as well. TiVo officials have described their future plans as moving away from simply manufacturing DVRs in favor of offering other services that use DVR technology.