Note, I’ll say right off the bat, that this is an unsubstantiated rumor. PVRBlog’s Matt Haughey is reporting on something a friend passed on to him. His friend, Matt, recently switched from cable to DirecTV and was told by two DirecTV reps that TiVo would be returning to DTV soon.

Personally, I don’t put a lot of faith into this particular rumor. But it is a slow news day, and it is interesting. However, in general I do think there is a very good chance of DirecTV introducing new TiVo-based DVRs in the future. The relationship between TiVo and DirecTV is clearly warming up again, with the previous announcement of a software update coming in 2008. As control of DirecTV shifts from News Corp to Liberty Media, the odds improve, as Liberty Media is a major corporate investor in TiVo. Comments from TiVo’s CEO, Tom Rogers, on last week’s financial conference call seem to hint at more news to come relating to DirecTV, beyond the software update. I don’t think we’d hear anything until 2008 - it is unlikely we’d see a box in time for the holidays, and neither TiVo nor DirecTV would want to poison sales of their current products by announcing something that won’t be out until next year. But the TiVo HD platform would make a good platform for a new DTV box.

I caught a report in Technabob, by way of EngadgetHD, on a a new DirecTV DVR aimed at professional installers and high-end consumers, the HR21 PRO Series HD DVR.

This is a rack-mount device for the kind of installations hidden away in an equipment room, not the kind of thing you normally have under the TV. It has twice the recording capacity of the consumer HR20-700, with up to 100 hours of HD. That indicates it has a 500GB drive, as the HR20 has 250GB. Technobob has a high-res image of the flier which clearly shows the back of the unit. It has a modem jack, two Ethernet ports, an eSATA port, two coax inputs (both appear to be satellite), one USB port, one S-Video out, one set of component video out, two composite video out, two stereo audio out, one digtal coax audio out, one optical digital audio out, one RS-232C port, one HDMI port, and one DLI port.

DLI is something most people are probably unfamiliar with, it is Digital Light Interface. Think of it as HDMI over fiber optics instead of copper wire. It allows for much longer runs between the device (the HR21 in this case) and the display, receiver, etc. The signal is effectively the same as on HDMI, including HDCP content protection. But the ability to do long runs allows for a centralized installation to server remote displays. There is a switch on the back of the unit which appears to select HDMI *or* DLI as an output. From the front panel it appears the unit outputs 480i, 480p, 720p, or 1080p - no 1080i.

It appears that this unit does not support antenna input, like the consumer devices do, so there is no recording of local ATSC channels. This is satellite only. I wonder why it has two Ethernet ports. Considering the nature of Ethernet, it is unusual to need more than one port on a device like this. No pricing is available, it looks like it will be on display at the upcoming CEDIA Expo (at DirecTV Booth 592), and it is rumored to be available in November.

Some news in the DVR industry today - BSkyB is buying DVR vendor Amstrad. BSkyB is the leading satellite TV vendor in the UK and Ireland, as well as being a major content provider with a number of Sky Television channels. Similar to DirecTV, a large stake of BSkyB is held by Rupert Murdoch’s News Corp. (I believe they hold about 39% of BSkyB, compared to about 40% of DirecTV.)

A number of changes implemented at DirecTV after the News Corp acquisition originated with BSkyB. BSkyB tightly controls all of the features and branding of their products. All of the BSkyB set-top boxes are branded BSkyB and must follow the same specifications. One of the first changes at DirecTV was pulling the licensed for 3rd parties like Sony to manufacture DirecTV receivers, and re-branded all of their hardware as ‘DirecTV’ instead of have different consumer electronics brands selling receivers.

Amstrad reportedly produces about one-third of BSkyB’s Sky+ STBs, as one of three vendors along with NDS and Thomson. This is interesting because News Corp also controls NDS and NDS is a STB and DVR vendor to BSkyB, as well as DirecTV. This acquisition of Amstrad could indicate a shift away from NDS’s platform for BSkyB, bringing a vendor fully in house. Once BSkyB closes the acquisition and wholly owns Amstrad, it would be much more cost effective to use that in-house platform than to purchase from NDS.

/~ It’s the end of the world as we know it… ~/

*Checks calendar* No, July 31 is not April 1. *looks outside* I don’t see anything falling from the sky - no toads, locusts, or brimstone. *checks weather* It is 94F in Hell (Michigan). Not frozen over.

Well, after eliminating the impossible, whatever remains, no matter how improbable, is the truth.

So, it looks like DirecTV and TiVo have warmed up their relationship somewhat.

DIRECTV, Inc. (NYSE:DTV), the nation’s leading satellite television service provider, and TiVo Inc. (NASDAQ:TIVO), the creator of and a leader in television services for digital video recorders (DVR), will develop a software upgrade to enhance the user experience for DIRECTV customers who have DIRECTV DVRs with TiVo(R) service built on the Series2(TM) platform.

Launching in early 2008, the new software download will provide these customers with DVR enhancements offered with the TiVo service, including a Recently Deleted Folder and Overlap Protection(TM), as well as DIRECTV’s Remote Booking feature. In addition, DIRECTV and TiVo will continue to explore ways to bring future enhancements to DIRECTV customers with TiVo receivers.

Remote Booking is basically online scheduling, so it sounds like the USB ports might be enabled for networking - unless they plan to rely on the phone line. But using the network is much more responsive and makes for a better feature. That could open the door for more network-based features, like music & photos, HME, TTG, etc. But I wouldn’t hold my breath for those just yet, not after it took this long for DirecTV to adopt just these features. Still, this is a good sign - and maybe lends some more hope to a real reconciliation between DirecTV and TiVo once Liberty Media assumes control of DTV.

As my readers are probably aware, TiVo used to be the DVR provider for DirecTV. However, after News Corp purchased DirecTV, they announced in late 2005 that they would cease marketing TiVo-based DVRs. Instead, DirecTV switched to using technology from another DVR provider - NDS. Unsurprisingly, as NDS is also owned by News Corp. Effectively, News Corp brought the DVR ‘in-house’. While TiVo and DirecTV extended their relationship into 2010, to continue to support existing subscribers, DirecTV lost the rights to market and sell TiVo-based units.

The new DVRs, the R15 and HR20 (which replaced the R10 and HR10-250, respectively), have met with a mixed response. Most of the reviews have been mixed, at best, and most are negative. It is common to see users comparing the new DVRs poorly to the old TiVo-based models. DirecTV also limited the features on the TiVo-based units - keeping all of the network features disabled. Many people, myself included, believe this was deliberately done to prevent the ‘new’ DVRs from looking all the worse, as they don’t offer similar features. It would’ve looked pretty bad if the new ‘Plus’ DVRs lacked all of the advanced features of the old units. Keeping the feature set of the TiVo units limited kept the bar lower for the new units to clear.

However, a ray of hope appeared late last year. Liberty Media began the process of acquiring DirecTV from News Corp, which continues today and is expected to complete later this year. Why is this hopeful? Well, a few reasons. First of all, Liberty Digital, a division of Liberty Media, is an equity investor in TiVo. Second, Liberty Media doesn’t have a direct interest in the DVR market, as News Corp did. They don’t have an ‘in-house’ technology provider to shift business to. (If anything, TiVo is probably the closest to that as they’ve invested.) And, third, Liberty Media executives are known to look favorably on TiVo and have talked them up, which is encouraging.

This has lead a number of people, myself included, to speculate on a possibly reconciliation between DirecTV and TiVo, once Liberty Media assumes control of the former.

Well, now we have another reason to speculate and be hopeful. While speaking at the Deutsche Bank Media and Telecommunications Conference yesterday, Tom Rogers, TiVo’s CEO, made some interesting comments during the Q&A:

Liberty is a company that has no ownership interests, now or even after the DirecTV closes, in a competing DVR, so that probably changes things. I know the guys at Liberty, I’ve known them for a long time, I think it is fair to say that they’re fans of TiVo and what it does. So, certainly, I look at that as positive in terms of the change of ownership. That deal hasn’t closed and therefore suggesting that there is anything that might follow from it is totally pre-mature. But I’d say in the scheme of things, that’s a positive thing.

It is one thing when bloggers and the press speculate on the possibilities, but it carries a bit more weight when the CEO does it. That usually means discussions are already happening.

From his presentation, 46% of TiVo’s new subs are still from analog cable customers. And TiVo is still the primary DVR for that market. Approximately 50% of new subs opt for a pre-paid plan (I would), and 59% of dual-tuner subs connect via broadband. He focused on the differentiating features TiVo has - like Amazon Unbox, Swivel Search, KidZone, etc.

Rogers also reiterated the August roll-out date for the Comcast software, and that Cox is still planning to do their initial roll-outs by the end of the year. Together, Comcast and Cox cover approximately 50% of US cable households.

He mentioned some interesting details about the Australian deal with Seven Network. Australia has a low cable/satellite penetration of ~30%. Most of the TV households use DVB-T over-the-air, which is the market TiVo is targeting. Broadband also has a high penetration in Australia, which will go well with TiVo’s broadband features.

Rogers also shared some info on Seven. They’re the largest independent broadcaster, with the #1 ratings this season. $800 million in annual TV advertising revenue. They have the exclusive rights to the 2008 Olympics - that could boost sales if TiVo gets the box out before then. They also control major magazine publications (read: advertising), and hold a 50% stake in Yahoo! Australia and a 33% stake in VOIP provider Engin. So expect to see cross-marketing and likely application tie-ins.

Once again DVB-T was highlighted as an international standard. It is a standard in 33 countries and is expected to reach 100 million households by 2009.

From Australia, Rogers jumped to Mexico to discuss the Cablevision Mexico deal. They’re the top cable provider in Mexico City with 500,000 digital subscribers, 51% owned by Televisa - the #1 broadcaster in Latin America. The boxes will be based on the current TiVo platforms - I’d presume the S2DT. It is TiVo’s first Spanish language box, and they’ll be able to leverage that work in other Spanish speaking markets. (As I, and others, have said in the past.)

He covered TiVo’s advertising and broadband offerings, as well as the ongoing EchoStar lawsuit, but didn’t really say anything we haven’t heard before.

They’re forecasting a Q2 adjusted EBITDA loss of $3 million to break-even and a net loss of $5-8 million, and they’re still looking at roughly break-even EBITDA for FY’08.

Rogers reiterated that a lower-cost HD box is coming this year and he expects that to be significant. The high price of the current S3 has limited sales. TiVo will also continue to do less subsidizing of the boxes and more advertising to drive sales.

During the Q&A, Rogers revealed an interesting fact about the Comcast software. Existing recordings are preserved when an existing DVR customer decides to upgrade to TiVo. I know this has been a question in the community. It sounds like existing ‘Season Passes’ are also preserved:

The existing recordings off of an entirely different DVR set of software, we look to preserve as we transfer it to make a TiVo DVR. And that is a really interesting proposition for a lot of people. To not only think they can get a quick download but, in so doing, it doesn’t disrupt any of their passes that they’ve created along the way.

He also said that TiVo has not started development on Scientific Atlanta boxes yet, but as things move to OCAP the transition work the re-use will go up.

Reuters and TVPredictions.com have also picked up this story.

- Net income was $835 thousand in the first quarter, compared to a net loss of ($10.7) million in the year-ago quarter - Adjusted EBITDA was $6.7 million in the first quarter, compared to a loss of ($6.9) million in the year-ago quarter - Service and Technology revenues were $58.1 million in the first quarter - TiVo Service on Comcast to first be launched in Boston and other parts of the New England Division - Announced significant deal with Seven, Australia’s leading broadcaster - Amazon Unbox on the TiVo Service successfully launched - Launched Impactful “My TiVo Gets Me” marketing campaign - Unveiled Universal Swivel Search on the TiVo Service - - the first TV-centric on-screen search tool for broadcast, cable and broadband content

That’s the excerpt from the top of their release. Right off the bat there’s some long-awaited news - the Boston area will be the first to get the TiVo service on Comcast. I live in Worcester, MA myself - which is, unfortunately, an island of Charter in a sea of Comcast, but maybe someone I know will get it and I’ll be able to check it out first hand. (Hey, even if I don’t know you, if you get this and you’re willing to have a stranger pop-in and mess with your DVR and take some photos, let me know. ) From the con-call, the trials will continue into summer with the initial commercial launch planned for August.

Financial results are clearly improved over last year, with positive results instead of losses - including a positive net income. Analyst consensus was for a loss of $.02 a share - but TiVo posted net income of $.01 a share, once again beating analyst estimates.

One thing that jumped out as a wee exaggeration in Tom Rogers statement in the release: “And, through the successful launch of Amazon Unbox on TiVo, which now has about 10,000 titles available to TiVo subscribers, we ushered in a new era of delivering premium broadband content directly to the television set.” If you go to Amazon Unbox and search on ‘TiVo’, you get 3,570 results. Without limiting it to TiVo, the total is 6,140. Not nearly 10,000, either way. In a comment, TiVo’s Stephen Mack pointed out that Amazon Unbox lists seasons of TV series as one ‘title’ in the search results, instead of each episode. So that would likely account for the discrepancy between the number given in the interface and the 10,000 figure stated by Rogers. On the con-call Rogers did say ordering Unbox videos from the TiVo with the remote will be coming to the TiVo service soon.

Rogers once again mentioned “introducing a lower priced HD box later this year”. And:

– Third, we continue to make progress toward a lower-priced, mass appeal
High Definition unit, which is expected to be available later this year
and will complement the important role that TiVo is playing in working
with retailers to offer High Definition products and services to
consumers.

I can’t wait to see what that box looks like - and what the price point is. I’d guess $300-400.

TiVo-owned gross subscriber additions for the first quarter were 57,000, compared to 91,000 a year ago, or 1,000 net additions compared to 51,000 a year ago. Overall TiVo-owned subs are up to over 1.7 million, compared to 1.5 million a year ago. DirecTV subs continue to decline, as expected with 103,000 net losses, compared to 2,000 net additions last year. Churn is 1.1%, up from 0.9% a year ago, but down from 1.2% last quarter. (This is very low churn.) TiVo’s total subscriptions are down slightly to 4.3 million compared to 4.4 a year ago, but now 59% of those are TiVo-owned, compared to 52% last year. TiVo-owned subs are worth far more to TiVo.

From the Q&A, almost 60% of S2DT, over 80% S3, and over 50% of all new subscribers are using broadband.

And important fact relating to the Australian deal announced yesterday is that Australia uses DVB-T (Digital Video Broadcasting - Terrestrial) for broadcasts. This same standard is widely used around the world, and dominates in Europe. The product development work done for the Australian product will support development of products for additional world markets that use DVB, in the same way that developing OCAP software for Comcast allowed TiVo to also work with Cox, and to pursue additional cable MSOs. Most of the development work is being funded by TiVo’s partner, Seven Network, the leading network in Australia, so this is a big win for TiVo all-around.

I could see this being the way TiVo can re-enter the market in the UK, where DVB is also used. As they said on the con-call, Australia is a major English speaking market. So any development done there would be directly transferable to another English DVB-T market, such as the UK. New Zealand has also adopted DVB-T, but it hasn’t been deployed yet. Of course, TiVo has also developed a Spanish language interface for Mexico, which could form the basis for work in other Spanish-speaking countries. And remember TiVo is a share holder in TGC (TiVo Greater China), which currently sells TiVo-based products in Taiwan and mainland China, with plans to expand to other countries in the area.

TiVo seems to be picking up steam lately, with an increasing pace of software feature development and new partnerships. And it will be good to have the OCAP software finally see the light of day.

DIRECTV says recording problems with its TiVo HD DVR — and other TiVo DVRs — can be fixed with a simple reboot.

Check out the post over at TVPredictions.com. Basically, DirecTV is saying that they’ve fixed the problem with recordings on DirecTiVos, and anyone still seeing problems just needs to reboot. I’m not so sure, since people reported that a reboot would clear it up for a while, but it would return. Only time will tell of they’ve really fixed it.

Customers of DirecTV with TiVo have been blanketing the satellite provider’s online user forums with complaints of a malfunction in the DVR service.

Complaints of the problem first surfaced in early December, but DirecTV spokesman Robert Mercer said Friday he didn’t know the exact cause of the glitch. The company “is aware of the problem and should have it fixed by this evening,” Mercer said.

Well, it has only taken a month, but they claim they have the problem fixed as of this evening. We’ll see - leave a comment if you have a DirecTiVo and you see it is fixed - or not.