Alviso, Calif. – TiVo Inc., the pioneer of digital video recorders, extended a service agreement with DirecTV Group Inc. on Wednesday, putting off the loss of its biggest partner.
The extension runs to Feb. 15, 2010, Alviso-based TiVo said in a regulatory filing. TiVo will continue to receive revenue from its more than 2 million DirecTV satellite-television customers, the company said.
The deal will let TiVo, which has had losses every year since going public in 1999, collect as much as $40 million annually from DirecTV for at least three more years, First Albany analyst Richard Baldry said. DirecTV, the largest U.S. satellite- TV provider, with 15 million subscribers, plans to have its receivers built into televisions and home computers, raising concern about competition with TiVo.
The company also is in the midst of a jury trial against DirecTV’s main rival, Douglas County-based EchoStar Communications Corp., the parent of Dish Network, alleging that the satellite-TV provider is infringing on its DVR patents.
Closing arguments in that case in Marshall, Texas, are scheduled for today.
The Associated Press contributed to this report.
