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Cable Technology Feature Article

July 23, 2008

TiVo and Amazon.com Shopping Channel Join Forces

By Eve Sullivan, TMCnet Editor


TiVo (News - Alert) – the creator of advertising solutions and television services for digital video recorders – announced that it’s partnering with Amazon.com (News - Alert), so subscribers can use their remote control to buy products seen on TV shows.
 
The new feature was launched in conjunction with four shows – The Oprah Winfrey Show, The Ellen DeGeneres Show, The Colbert Report and Burn Notice – but can be used while watching any broadcast or cable network program.
 
“Product Purchase adds a whole new dimension to the TV viewing experience,” said Evan Young, director of broadband services for TiVo. “By teaming with Amazon.com, TiVo enables viewers to purchase products related to their favorite TV shows or that they’ve seen in TV ads without leaving their couch.”
 
For example, he said, if a guest on Oprah has a new book or CD, you can purchase it on Amazon.com using your TiVo remote without missing a moment of TV.
 
“The viewer with an impulse can buy right away and no longer needs to remember to do so the next time they are at their PC,” Young said. “Television advertisers and consumer products companies are no longer limited to the traditional linear shopping channels that require live viewing for product merchandising and fulfillment.”
 
The feature could prove helpful to advertisers whose products are praised in programs, in which the host recommends items for health care, cooking or beauty. If they want to buy, they only need to use their remote to do a search on Amazon, and either purchase the item right away or later.
 
The service calculates shipping and tax and presents the final bill. Purchases are secured through the personal identification number associated with their account.
 
“Now, a record label can merchandise and sell a new artist’s CD on a show where the music is featured, or a publisher can merchandise an author’s book during a talk show when the author appears as a guest – the marketing possibilities are endless,” Scott Merlino, senior manager of business development at Amazon, said.
 
The service will be available to subscribers of broadband-connected TiVo Series2 and Series3 digital video recorders, and the company’s HD DVR.
 
TiVo pioneered the DVR in the late 1990s and has expanded into other markets to combat competing products offered by cable operators and satellite TV providers. In seeking other revenue, TiVo has moved into advertising, including advertising to targeted viewers and interactive advertising that gives viewers the option to look more closely at a product.
 
TiVo reported a drop in revenue, from $58.1 million to $54.9 million, in the fiscal quarter ended April 30, as compared to last year’s. Net income, however, increased to $3.6 million from $835,000. The company expects a net loss from $2 million to $4 million in the current quarter on revenue from $53 million to $55 million.

Eve Sullivan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Eve’s articles, please visit her columnist page.