Australian telco Engin, which had the exclusive rights to distribute TiVo in Australia for partner Seven Network, has relinquished those rights in light of severe financial troubles, according to Smarthouse News. While Engin retails the rights to distribute TiVo in Australia, those rights will now also be open to other companies.
In a bid to re-acquire lost money, Engin has relinquished its exclusivity rights to the US-owned TiVo pay-TV brand, which is now open to distribution by other companies. Engin originally planned to bring the TiVo hardware into the company in an exclusive deal with the US, with Engin part-owner, Seven Network Limited, providing the broadcast content.
Engin says this move will “significantly reduce the performance related risk and demands on working capital carried by Engin under the [former] TiVo distribution contract.”
According to the report, Engin is now in a better position to focus on its VoIP business, while still retaining the option to distribute TiVo as part of a Broadband triple play.
“This position materially decreases its working capital demands and will accelerate its path to profitability,” said Engin.
This seems unlikely to affect the launch of TiVo in Australia this year by Seven Network. And it could lead to wider distribution if other companies pick up distribution rights now than Engin no longer has an exclusive lock.
EDIT: I’ve seen some confused comments around the net, and I don’t know where it is coming from. It seems like some people think TiVo just lost their distributor for Australia. That is not the case. Engin will still be distributing TiVo for Seven Network, it is just that they’ve relinquished the rights to be the exclusive distributor. Engin is part owned by Seven Network, so it is unsurprising that they’ll still be distributing TiVo. But now Seven may also line up other distributors in addition to Engin.
People will panic over anything.