NEW YORK (
shares are gaining today after it announced it has inked a multi-year deal with
that will make TiVo services available in Charter markets later this year.
Charter, the nation's fourth-largest cable operator, signed with TiVo as it looks to integrate Web content, recorded TV and video on demand with its traditional cable television service.
TiVo shares are up about 2% to around $9.75 today while Charter shares are gaining about 0.25% to $41.25.
Charter president and CEO Mike Lovett hopes to "bring a whole new world of applications to the television" through its deal with TiVo.
"We're integrating formerly disparate worlds of traditional television and online content, and making it simple for customers to quickly find the content they're looking for, as well as greatly expand their entertainment choices," Lovett said in a press release. "Our strategic relationship with TiVo is a significant step in Charter's multi-year effort to become the solutions provider for home entertainment and consumer information technology.
The service will allow customers to access cable, local news, Internet video, Facebook and Twitter updates, from their TV. It will also offer its customers access to TiVo's digital video recorder service through its Premiere set-top boxes.
"We are pleased to offer a solution that seamlessly delivers DVR based video on demand, traditional network based video on demand, and the newest in broadband to the TV video on demand," TiVo CEO Tom Rogers said.
Media research analyst Tony Wible of Janney Capital Markets believes that the deal with Charter benefits TiVo as it continues to strike new agreements with multiple system operators around the world.
"TiVo now has three MSO agreements in Europe --
-- and three more meaningful deals in the U.S. -- Charter,
," Wible said in his Jan. 24 research note.
He expects a decision, in TiVo's favor, from the Federal Circuit Court on the
company's pending patent case
, to come by the end of March.
He maintains his buy rating on the stock and a price target of $19.
--Written by Theresa McCabe in Boston.
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