TiVo, Netflix Join in Movie-on-Demand Project

Oct 1, 2004  •  Post A Comment

With both TiVo and Netflix seeking to stay ahead of the escalating competition in their business, the two companies reportedly signed a deal to develop a movie-on-demand service, a possibility that had been speculated about in recent weeks. The move is a sign of the growing power of the Internet as an alternative delivery system for content, since Netflix would likely offer movies-on-demand via the Internet, while TiVo would benefit from another content source, as networked digital video recorders built into cable set-top boxes become more prevalent.

The service is not likely to go live until late 2005.

As the companies develop the service, they will need to seek out Internet rights from movie studios for the films. Securing Internet rights for entertainment content is becoming increasingly important for many prominent content partners, who are turning to broadband delivery as an additional distribution mechanism.

Daisy Whitney