In addition to focusing on small- and medium-size U.S. operators, TiVo will seek to expand distribution in Western Europe, Rogers said. But TiVo has parted with one potential partner in Telenor’s Canal Digital direct-to-home satellite service in Scandinavia, Rogers said. TiVo signed an agreement with Canal Digital in late 2010, but the company has undergone a management shakeup, including the departure of CEO Tone Krohn Clausen, and is said to have been up for sale.

“They had a big strategic process they were going through in selling the company and we decided pouring resources into a company that might be selling itself near term might not be the smartest thing,” Rogers said. “It’s not clear what they are doing and for the kind of shoulder that it takes roll out what we do, we knew that it would not be the best circumstances.”

So we finally have an explanation of what happened with that deal. It’s dead, Jim. Well, at least for now. It sounds like the door is still open if Canal Digital sorts their issues out and is still interested, but TiVo doesn’t want to get involved for now.

You might have noticed the first sentence in the quoted material, about small- and medium-sized US operators. That’s actually the main gist of the CED article. TiVo is seeing most of their traction in the US come from those operators, and not the big boys. So they aren’t putting a lot of energy into pursuing ‘Comcast-size’ deals. While TiVo’s deal with Comcast is significant, it is clear that Comcast’s focus is on their own in-house developed service, X1. While it seems that Comcast will fulfill their end of the agreement and continue to expand coverage of TiVo support for XFINITY VOD, TiVo is really a secondary offering for them. Their primary push is going to be X1, and understandably so.

Five of the largest MVPDs in TiVo-served territories – Comcast, British Sky Broadcasting, DirecTV, Dish Network and Time Warner Cable – are working on DVR strategies in-house and are unlikely to ever adopt TiVo’s software as their primary platform. I’d also add Verizon FiOS and AT&T U-Verse to that list. While TiVo may be able to collect licensing revenue for their patents from these providers, there’s little chance they’ll contribute directly to subscriber numbers. But the small- and medium-size MSOs don’t have the resources to develop their own DVRs, so they need third party vendors to fill the need – which is where TiVo comes in. They’ve already had success in the US with MSOs such as RCN, Suddenlink, Grande Communications, and more.

Of course, they have landed one major MSO as well – Charter Communications. But the deal seems to be stuck in neutral. Charter began deploying TiVo in Fort Worth, TX last November and at the time planned a“full production launch enterprise wide in the first half of 2012.” However, in February of this year they announced they they were pushing the schedule out, without providing any new time frame.

Since then we haven’t really heard much, and Charter’s TiVo deployment remains limited to Dallas & Ft. Worth, TX. Rogers stated that TiVo is “working closely” with Charter to expand their deployment into new territories. There has been some speculation, which I also heard going around The Cable Show, that Charter might be one of the early customers for the new Pace XG1 running the TiVo software. And that could account for the hold up, waiting for the XG1 to be available, but that’s just a rumor and I don’t know that I’d put much stock in it.

Check out the Consumer Electronics Daily article for yourself.

The Pace XG1 isn’t considered a DVR, but a “Multi-Tuner Video Gateway”. It is really part of a new type of solution, in the same category as Arris’s Moxi Gateway. It is meant as a content ‘gateway’ into the home, feeding client boxes which actually handle the content display. The XG1 has six digital cable tuners as well as a built-in DOCSIS 3.0 modem for data connectivity and IP content delivery, and MoCA for home networking.

Running TiVo’s software it will support TiVo’s whole-home solution, streaming content to traditional STBs as well as IP clients. It is also compatible with TiVo’s phone & tablet apps. It will be available to US operators later this year.

I didn’t make it to Pace’s booth Monday. I’ll try to get there on Tuesday to see what additional info is available.

The Press Release is below:

TIVO AND PACE ANNOUNCE FIRST PACE PRODUCT WITH TIVO SOFTWARE INTEGRATION

Pace XG1 Multi-tuner Video Gateway to offer 6 video tuners, integrated DOCSIS 3.0 and support for TiVo Whole Home Solution

BOSTON, MA – May 21, 2012 – TiVo Inc. (NASDAQ: TIVO), the creator of and a leader in advanced television services, including digital video recorders (DVRs), for consumers, content distributors and consumer electronics manufacturers, and Pace (LSE: PIC), a leading developer of technologies, products and services for global broadband and broadcast markets , today announced details of the first product, the Pace XG1, resulting from a global partnership TiVo and Pace announced in February 2012 to develop flexible, advanced television solutions for operators. This new Multi-tuner Video Gateway from Pace will provide cable operators in the Americas an advanced television solution for their customers by bringing to market the full award-winning TiVo experience on powerful, new platforms designed to be easily integrated with today’s cable networks.

The Pace XG1 includes 6 video tuners, an integrated DOCSIS 3.0 modem, and at least 500GB of on board hard drive storage. It will utilize TiVo’s whole-home capabilities, such as multi-room streaming and support for both traditional set-top boxes and IP devices as clients over MoCA, and support for TiVo’s mobile and tablet applications.

David Sandford, Vice President and General Manager of TiVo’s Service Provider Business said, “This partnership will make the TiVo experience easily accessible to more cable operators than ever before. It will provide operators a best-in-class advanced television solution that they can quickly and cost-effectively deploy and will serve as the gateway to a rapidly expanding choice of content across multiple screens through TiVo’s whole-home solutions.”

Tim O’Loughlin, President of Pace Americas, stated, “There is no denying that the current climate for operators is immensely competitive, and we have been hearing more and more frequently from this community that TiVo is a user experience that they want to offer. We are excited this partnership has yielded a product that will harness the very best of traditional television and broadband delivered content into a seamless, enjoyable package across multiple Pace platforms and customer owned devices.”

As previously announced, this initial offering will first be made available by Pace to cable operators in the Americas later this year. TiVo and Pace also expect to follow the XG1 with additional solutions for domestic and international operators soon after.

U.S. operators currently deploying TiVo offerings to their customers include Charter, DIRECTV, RCN, Suddenlink and Grande Communications, and European operators include Virgin Media, the largest cable operator in the UK, and ONO, the largest cable operator in Spain.

TiVo and Pace unveiled details about the Pace XG1 at the 2012 NCTA Cable Show in Boston. For more information visit the TiVo booth #1859 and Pace booth #1653 located in the main exhibit hall.

Pace is a global provider of hardware to the cable, satellite, & IPTV industries, including major MSOs like Comcast in the US. While TiVo’s current MSO deals in the US, with RCN, Suddenlink, Grande Digital, and Charter, all involve TiVo hardware, it makes sense to diversify with other platforms. Larger MSOs may be more comfortable buying hardware from a vendor they already do business with, and which has a proven track record of being able to manufacture and delivery large quantities of units. TiVo is still a relatively small player in the STB world. Also appealing will be the ability to use Pace’s provisioning and device management capabilities and their integrated high-speed data connectivity (aka built in DOCSIS and/or MoCA) for broadband communications and content delivery.

While Pace will be offering TiVo products to customers world wide, the release states that the initial product will be made available to cable operators in the Americas. That sounds to me like there are already initial customers lined up, but not yet publicly announced.