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Tuesday, June 28, 2005

Supremem Court New Media Ruling Update

This piece was just released from Tobi Elkin of MediaPost.

Media mogul Tom Rogers finally got what he wanted all along - to become head of TiVo. He's been vice chairman of the company for more than a year and successfully negotiated a deal with Comcast to integrate TiVo into the company's digital cable set-top boxes.

Rogers has been chomping at the bit to lead TiVo and now he's the top dog; he'll assume the role of president and CEO on July 1, succeeding Mike Ramsay, the company's founder, who announced he would step down in January as CEO. Now, it's up to Rogers, the ultimate dealmaker, to forge deeper connections with cable and satellite providers to distribute TiVo which, despite having only 3 million subscribers, is a force to be reckoned with.

It's not the company though so much as the technology that has taken the advertising and media worlds by storm. We will no doubt hear a sober forecast on advertising growth today from TNS Media Intelligence due, in part, to the advent of TiVo, which enables ad skipping. Of course there are many other factors at work and reasons why ad growth, at least in the TV segment, isn't as robust as it once was.

We expect estimates for online ad growth to be healthy.

TiVo's Rogers told CNBC yesterday that while cable distribution of TiVo is a cornerstone of the company's strategy, selling the standalone TiVo box at retail remains an important part of the overall plan as well. It's important, Rogers said, for people who don't have access to digital cable: "We have to find more creative ways to drive those standalone sales." TiVo, meanwhile, will also seek additional cable distribution deals.

Regarding yesterday's Supreme Court ruling on file-sharing and copyright protection, Rogers said the decision is significant "because content is critical to driving any of these new technologies. TiVo has always been respectful of copyright issues. ..We are very much believers that copyright protection is a very important principle that needs to be pursued." Copyright protection advocates have scrutinized TiVo's TiVoToGo product.

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