TiVo And Best Buy Team Up To Promote Each Other

TiVo (NSDQ: TIVO) — which has seen the ranks of its subscribers drop — and Best Buy — which is ramping up its digital initiatives — think they can help each other out. The two companies are forming a partnership to promote each other’s offerings. The basics, via the NYT and the San Jose Mercury News: Best Buy will “heavily promote” TiVo DVRs in its stores and also put TiVo software on its in-house TVs. TiVo, meanwhile, will make Best Buy’s Napster music service (as well as unspecified future Best Buy digital offerings) available to its subscribers and also develop a new DVR that will promote Best Buy products.

No financial terms were disclosed — but TiVo likely has the most to gain in the deal. It continues to steadily lose subscribers to cable companies, so the prominent play at Best Buy stores should help; it had 3.2 million subscribers at the end of its first quarter, down from 3.8 million a year ago. And the Napster tie-in will help it add to the list of services it offers on its DVRs. It already lets subscribers access the Rhapsody music service and it reached a deal with *Blockbuster* earlier this year that will allow subscribers to rent and buy movies.