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CES 2009

TiVo’s New Search Tools Incorporate Internet Content Partners Amazon and YouTube

| Jan 9, 2009 | Digital Home - U.S. | Show Update

| Analyst: Bruce McGregor

Current Perspective: Neutral/Positive
Vendor Importance: High
Market Impact: Moderate

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Event Summary

January 7, 2009 -- TiVo announces upgrades to its DVR boxes’ search capabilities through its new version of TiVo Search (beta). The company unveils new features for users to find content faster and discover new programming available through the TiVo device. TiVo is integrating video content from its Internet partners including Amazon Video On Demand and YouTube into the upgraded TiVo Search tool.


Analytical Summary

• Current Perspective: Slightly positive on TiVo’s decision to upgrade its search tools because its broadband- enabled devices now offer a richer search function that incorporate Internet-driven content from YouTube and Amazon. Better search capability is necessary for TiVo users to receive the full benefit of having access to both linear TV recordings and Internet downloads of TV shows and movies. With TiVo boxes now offering hundreds of TV channels and thousands of broadband titles, a quick and relevant search is essential.

• Vendor Importance: High to TiVo because integrated and robust search with results highlighting both cable TV programming and video downloads blows away the search functions of cable provider’s generic DVR set-top boxes. TiVo’s partnership with Amazon enables it to take potential revenue away from cable providers’ video-on-demand (VoD) services (please see TiVo and Amazon.com Link Up for DVR Users to Download Popular Movies and TV Shows, March 8, 2007). Amazon Video On Demand is a more powerful entertainment application compared to cable VoD, since it makes purchased digital content accessible and transferable on up to two PCs or TiVo DVRs and two portable devices at any one time.

• Market Impact: Moderate on established pay TV services (cable, satellite and telco TV) because TiVo is building a stronger value proposition for digital home customers to invest in a TiVo box with a growing set of advance features over a service providers’ plain DVR solution. The emerging category of Internet-to-TV devices like the Roku Video Player are threatened by TiVo’s moves in adding Internet-driven video content by weakening their attractiveness as a one function device. In addition to accessing online video, the TiVo HD DVR can link up to personal digital photos and video clip.



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Digital Home - U.S.
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