Cox Communications is allying with TiVo: The big cable company says it will bring its On Demand movie service, which provides subscribers with hundreds of movies they can watch, to TiVo’s Premiere DVR, which debuted in March. The two companies say the Premiere will be the “first retail product to fully integrate a cable VOD service.”
As VideoNuze‘s Will Richmond points out, the deal means that Cox’s video-on-demand library is now going to be presented side-by-side with competing offerings from companies like Netflix (NSDQ: NFLX) and Amazon (NSDQ: AMZN) that are already accessible on TiVo’s DVRs.
Cable companies have typically limited such arrangements by restricting third-party DVRs from accessing their video-on-demand libraries, but Cox says in a release that “we recognize that consumers are attracted to a growing range of devices that enable them to access broadband content and interactive capabilities.”
A spokeswoman tells us, “because customers would still have to have Cox video service to enable a TiVo (NSDQ: TIVO) DVR” the company never considered TiVo to be a direct competitor. “Yes, they are potentially taking away some DVR Service revenue, but we also do not have to sink DVR CapEx for a set-top into the customer’s home,” she said.
As part of the partnership, Cox, which is third biggest cable company in the U.S., will be heavily promoting the TiVo Premiere on its website, in ads, and via direct marketing to its existing subscribers. It’s also offering to install TiVo Premiere DVRs for free for its subscribers. Those moves should help TiVo cut back on the declines it has been seeing in its subscriber adds.