TiVo (NSDQ: TIVO)—which has seen the ranks of its subscribers drop—and Best Buy—which is ramping up its digital initiatives—think they can help each other out. The two companies are forming a partnership to promote each other’s offerings. The basics, via the NYT and the San Jose Mercury News: Best Buy will “heavily promote” TiVo DVRs in its stores and also put TiVo software on its in-house TVs. TiVo, meanwhile, will make Best Buy’s Napster music service (as well as unspecified future Best Buy digital offerings) available to its subscribers and also develop a new DVR that will promote Best Buy products.
No financial terms were disclosed—but TiVo likely has the most to gain in the deal. It continues to steadily lose subscribers to cable companies, so the prominent play at Best Buy stores should help; it had 3.2 million subscribers at the end of its first quarter, down from 3.8 million a year ago. And the Napster tie-in will help it add to the list of services it offers on its DVRs. It already lets subscribers access the Rhapsody music service and it reached a deal with Blockbuster earlier this year that will allow subscribers to rent and buy movies.
By Joseph Tartakoff