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AOL: Not Just an Internet Company

Looking to move beyond the boundaries of the Web, AOL strikes a deal with TV company TiVo.

The summer of new-media alliances continues to heat up.

America Online has announced that it will team up with personalized television services provider, TiVo.

AOL plans to incorporate TiVo's digital VCR and software into AOL TV, the interactive TV service that the company is currently developing, according to a joint statement. It also has taken a minority investment in TiVo; the amount was not disclosed.

TiVo makes software and offers services for what it calls a "personal video receiver," a digital VCR that allows viewers to customize their television experience. Users buy a special receiver installed with the TiVo software that enables them to create a personalized TV service. For example, viewers can play their favorite TV shows in any order they choose, edit out advertisements, and create instant replays. Users pay a monthly fee for the service.

The move also demonstrates AOL's efforts to move from its role as an Internet-based content provider and become a more broad-ranging media company. Its recent AOL Anywhere campaign, which includes AOL TV, is designed to give consumers access to AOL content from a variety of different outlets, including mobile phones, TVs, and handheld devices.

AOL joins Philips Electronics NV, DirecTV, Showtime, and most recently, NBC in announcing agreements with TiVo.

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