"Analysts have few qualms that the technology pioneered by
Replay and TiVo eventually will become part of every household's
entertainment center - but they do have trouble seeing where the
cash will come from. Once the features become standard, who will
want to pay a premium for Replay or TiVo?..."
"Meanwhile, to tuck the subscription fees and hardware into one
consumer-friendly package, TiVo has developed a combination
satellite receiver and box with DirecTV and is working with AOL on
a similar AOL TV box...."
"Still, every box counts at this stage of the game. TiVo's AOL
alliance is its pre-emptive strike against Microsoft's Ultimate TV
platform, which has yet to appear on the horizon. But Ramsay has no
doubt that when Ultimate TV does arrive, it will be a formidable
competitor. 'That's who we've viewed as the main competition all
along,' he says. 'We're going to keep our heads down this quarter
and try and sell as many boxes as possible.'"