TVNZ confirms TiVo deal

TVNZ has confirmed an $A8 million deal with the local licensee for TiVo, the US maker of a MySky-style set-top box. A TiVo service, including pay-per-view, ondemand TV and video delivered via broadband, will go live before Christmas. But MediaWorks isn't yet onboard, and TVNZ has yet to find an ISP partner.

TVNZ Chief Executive Rick Ellis confirms that his company has bought a one-third share in Hybrid TV, the vehicle set up by the Seven Media Group in Australia, which up until now has held the exclusive TiVo license for Australia and New Zealand.

The deal involves $A8 million ($NZ9.8 million) in cash, plus an unspecified amount of air time ("There is no opportunity cost," TVNZ CFO Rodney Parker noted wryly at the TiVo announcement in Auckland this afternoon. "We have a lot of inventory".)

TVNZ does pay TV
The deal will see high definition broadcast TV delivered to to TiVo set-top boxes, via Freeview HD, plus standard definition, on-demand movies and TV programmes (plus extras like games, weather and horoscopes) delivered via broadband. Viewers will also get the ability to order pizza via TiVo.

Around 80% of the movies delivered via broadband will be on a pay-per-view model, priced to match SkyTV's pay-per-view service, and the balance free.

With ondemand TV programmes, 80% will be free.

TVNZ has yet to announce a partner for the broadband side of the equation, but Mr Ellis says it will engage with multiple providers. In Australia, a peering arrangement with an ISP called Internode sees TiVo users avoid busting their monthly data caps. (On a technical level, the first 10 minutes of a movie are downloaded in around 2 minutes. The movie's first 10 minutes then begin to play while the rest of the video downloads in the background.)

Freeview-on-steroids
Hybrid TV's chief executive Robbee Minocola, in Auckland for the launch, described the New Zealand iteration of TiVo as "like a Freeview box on steroids".

A TiVo box will be able to receive all the channels broadcast on Freeview's digital terrestrial platform, Freeview HD, including MediaWorks' TV3 and C4.

It's all about the EPG
However, although TV3 and C4 will be viewable thanks to the Freeview HD hookup, an electronic programming guide (EPG) is also needed to unlock TiVo's magic tricks, such as its "season pass" that lets you automatically record every programme in a series with a click.

An EPG is also necessary for TiVo's unique features, such as "Wishlist" which lets you follow programmes featuring a favourite director or star, and the ability to remotely set recordings via the web. In Australia, this feature is hosted by Yahoo7 (also owned by the Seven Media Group). In New Zealand the web scheduling feature will be hosted by tvnzondemand.co.nz.

Mr Ellis says he has not yet talked with MediaWorks chief executive Brent Impey about acquiring the TV3 and C4 EPGs for use on TiVo.

But as a Freeview shareholder, and a free-to-air broadcaster that needs as much exposure on as many platforms as possible, it is logical for MediaWorks TV subsidiary TVWorks to come on board.

Ms Minocola notes that commentators in Australia were dubious that Hybrid TV could get all free-to-air broadcasters on board, given that Seven Media Group owns the Seven network, but TiVo launched with arch rivals Nine, Channel 10 and the ABC all on board.

The hardware
A standard TiVo set-top box will have a 160GB hard drive, plus twin tuners. There is no local pricing yet, but in Australia it sells for $A699. Unlike TiVo in the US, there are no monthly subscription fees.

Extras will include a 1 terabyte (1024GB) external hard drive, which will give TiVo four times the capacity of SkyTV's current MySky HDi box.

Flicking content from TiVo to PC
Another unique selling point will be an optional wireless networking kit (selling in Australia for $A199) which lets you feed content on one TiVo to two TVs, or to copy it to a PC, Mac or iPhone.

The adapter can also be used to move photos, video and music from your PC to your TiVo to view on or listen to via your TV.

TiVo down under
The Seven Media Group gained Australian and New Zealand rights to TiVo in 2007. The 100% Seven-owned Hybrid Television Services (ANZ) Pty was set up as the vehicle to manage the license (Seven also owns YahooSeven, which in turn owns 51% of YahooXtra, a joint venture with Telecom).

In July 2008, Hybrid began selling TiVo hard drive recorders in Australia through retail outlets for $A699 a pop. The Aussie Tivo boxes can record any free-to-air channel. And unlike the wildly popular TiVo box and service in the US - owned by the company of the same name, and always bundled with a pay TV account - there is no monthly subscription fee attached.

Freeview boss: TiVo welcome
Freeview General Manager Steve Browning told NBR that, from his standpoint, TiVo’s entry into New Zealand is a good thing. “It's  just be another digital recorder that could record Freeview, like PlayTV [the coming Sony PlayStation3 accessory that will be able to record Freeview]. For us, the more types of recorder out there, the better.”

TiVo recorders were the last word in tech cool when they debuted in the US, and some of their tricks are still unique, such as the ability to “learn” a customers’ recording preferences then automatically record like-minded shows, or to automatically record shows that feature a favourite actor or director.

But other features, such as live pause, watching the start of a programme while it’s still recording, and an onscreen electronic programme guide that allows one-click recording, or the ability to automatically record a series every week, are now passé, and feature on MySky, My Freeview and many other services.

TiVo has responded with new featues like its networking adapter for sharing content, and its programme-via-the web function, which remain unique selling points. 

Ms Minocola says TiVo has 4 million subscribers in the US, where it's seen as "The MySky for pay TV providers like ComCast and DirectTV".

During its first 18 months in Australia, 120,000 TiVo boxes have been sold, with a target of 500,000 in its first five years. Mr Ellis stresses that as a one-third Hybrid TV shareholder, the Australian sales are now just as important to TVNZ as local ones.

In New Zealand, Hybrid aims to sell 120,000 TiVos in the first five years after the pre-Christmas launch.