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TiVo Introduces Service for Comcast Following Delay (Update1)

By Meg Tirrell

Oct. 11 (Bloomberg) -- TiVo Inc., the pioneer of digital video recorders, introduced its service for Comcast Corp. customers this week following delays.

Some Comcast customers already have the service in place, TiVo and Comcast said today in an e-mailed statement. The introduction will continue in New England in the coming months.

TiVo first announced its partnership with the biggest U.S. cable TV company in 2005 and said at the time the service may be available by late 2006. Comcast is adding TiVo features to existing set-top boxes and charging a fee for the added service.

Tom Rogers, TiVo's chief executive officer, mentioned the delays at a conference in New York on Oct. 9, Reuters reported. TiVo had previously expected to introduce the services by last month.

TiVo may reach as many as 3 percent of Comcast's DVR subscribers in 2008, Piper Jaffray & Co. analyst Michael J. Olson said today in an interview. Olson estimated that Comcast would have 6.66 million DVR subscribers next year.

``The impact in 2008 is relatively small,'' Olson said. TiVo's ability to tap into a large percentage of Comcast's DVR subscribers is ``limited because of the timing of the roll-out'' and the region-by-region strategy, he said.

Olson predicted in a note to investors that the material impact of TiVo's deal with Comcast would likely be less than 6 cents a share in 2008. Olson, based in Minneapolis, rates TiVo stock ``underperform'' and doesn't own it.

TiVo shares gained 3 cents to $7 at 4 p.m. New York time in Nasdaq Stock Market trading. The Alviso, California-based company has gained 37 percent this year. Philadelphia-based Comcast, down 16 percent this year, lost 2 cents to $23.68.

TiVo today named Thomas Wolzien as a director, expanding the board to nine members, eight of which are independent. Wolzien heads a consulting firm that provides services to media and communications companies, TiVo said today in a statement.

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net.

Last Updated: October 11, 2007 16:51 EDT

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