Amazon Teams Up With TiVo
Techtree News Staff, Jul 22, 2008 1800 hrs IST
TiVo is set to introduce a "product purchase" feature, which will allow TiVo subscribers to purchase products listed on Amazon.
TiVo is a brand of Digital Video Recorder available in some countries which is used to record TV programs for later viewing. The process called "Time Shifting" also provides features like an electronic programming schedule, with recording options based on that schedule.
Amazon , as most of us know, is the Internet retailing giant. So what does TiVo have to do with Amazon?
Apparently, TiVo is all set to introduce a "product purchase" feature today in partnership with Amazon. Subscribers of TiVo will now see options to purchase products listed on Amazon. The products include CDs, DVDs and books that guests are promoting on popular talk shows.
In some months, TiVo also plans to begin offering this feature to advertisers and programmers, so the opportunity to buy products and have them delivered will be presented to viewers during commercials and even alongside product placements during live shows.
TiVo and Amazon, based in Seattle, have an existing relationship. Since last year, owners of broadband-connected TiVos have been able to download movies and televisions shows to their set-top boxes from Amazon's digital video store, now called Amazon Video on Demand. The two companies have not disclosed the financial details of their newest deal, but in general Amazon's affiliates get a 15 percent slice of a sale when a customer they referred makes a purchase on the site.
Interestingly, TiVo, was known as the "disruptor" in media circles as they helped people skip advertisements. It is ironic that the same company is working with the media industry to make advertising less intrusive, and at the same time, more effective.
There were previous attempts of this sort earlier, most famously, the disaster from Time Warner called Qube box trial. This was in the late seventies though. With TiVo, even with these advertisements, the TV viewing part is left untouched, for even if the user chooses to have a look at the product, the DVR will record the program for that time interval so the user will not miss out anything.
Timothy Hanlon, Senior Vice President for Denuo, the media futures division of the Publicis Groupe said TiVo's purchase feature "is a harbinger of what television ultimately should become".
Although not a big player yet - with a presence only in four million homes - TiVo realizes that by branching out to the lucrative set-top box and software building business, it can get into tie-ups with much larger media companies like Comcast and Time Warner. The tie-up with Amazon is just a beginning.
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