TiVo and satellite broadcaster DirecTV struck a deal to facilitate the sale of ads on DirecTV DVRs that come with TiVo service.
Under the pact, both companies are free to sell ads on the service, and each retains its respective revenue from any sales. Further terms of the deal were not disclosed, and the firms didn’t respond to inquiries.
The companies’ announcement didn’t specify what type of ads the two would offer advertisers. TiVo has recently begun selling a new ad format on its service, according to reports. It’s also said to be working with Comcast on a method to replace recorded ads with fresher ones, according to a report on the Dow Jones news service. Most of TiVo’s interactive advertising sales thus far have come in the TiVo Showcase, a section of the service where subscribers can explore longer-form commercial messages.
Although the DirecTV move amounts to a win for TiVo, it won’t likely bear fruit in the long term, according to Jupiter Research (a Jupitermedia Corp. division) analyst Todd Chanko. The TiVo-DirecTV relationship is slated to end in 2007, when DirecTV parent News Corp replaces the TiVo option on its boxes with its own DVR product.
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