Netflix, TiVo Reportedly Working on Download Deal7 Sep, 2004 By: Holly J. Wagner
Rumors that Netflix and TiVo are finalizing a deal that would let viewers download movies to their TiVo receivers sent stock in both companies up the charts Tuesday.
TiVo was up more than 16 percent, from $4.42 to $5.14 by midday, and Netflix was up about the same amount, from $14.36 to $16.69.
Investors rallied behind the tech companies after Newsweek magazine reported that the companies will unveil the service later this month.
Viewers would have to subscribe to both services to take advantage of the new options, according to Newsweek, which cited sources close to the negotiations. The magazine reported that all that remains to complete the deal is a signoff from TiVo's board.
Spokespersons for Netflix and TiVo could not be immediately reached for comment.
Netflix CEO Reed Hastings has said in the past that the company hopes to offer movie downloads next year, but has kept mum on what such a service would look like.
Blockbuster, meanwhile, has just launched its foray onto Netflix's cyberturf with an online rental service priced $2 a month less than Netflix's and in-store trading.
If the rumored deal is realized, it would not be the first service to offer consumer downloads. Both studio-backed Internet movie services — Movielink and CinemaNow — offer downloads with limitations on viewing time, device shifting and replayability. CinemaNow was the first to offer consumers the option of buying downloads that let them burn the movies to disc.