TiVo is diversifying by adding web video from such providers as the NBA, New York Times, CNet and iVillage. Interestingly, the deal is TiVo's way to provide more value not more revenue. The content providers (at least iVillage) will maintain 100$ of the ad revenue generated by short ads associated with the content. TiVo, which has 4.4 subscribers, has had "lackluster" growth — 1.2% increase in the three months ending in April. Stock over the last 12 months have declined 13% (USAToday).
This is an interesting deal, but not a game changer. It does not impact subscribe via DirecTV and really only impacts the 400,000 that have connected their TiVos to broadband (obviously we would expect that number to grow dramatically as a result of this new incentive to toss a $100 receiver into the back of the unit).
What's more interesting is it's further evidence of the breakdown between "lean back" (TV viewing) and "lean forward" (viewing video on web). More on that in another post.