TiVo Takes Hit on DirecTV Report

<I>Reuters</I> quotes CEO Carey saying DirecTV will stop marketing the devices.

Author:: TSC Staff
Publish date:: Aug 11, 2005 9:15 AM EDT

TiVo

was under pressure Thursday after a published report reiterated a major customer's plan to de-emphasize its recording device.

Shares slid 9% on Instinet after Chase Carey, the CEO of

DirecTV

(DTV)

, was quoted by

Reuters

saying the satellite television provider will stop marketing TiVo's recorders this year.

As it has signalled previously, DirecTV will switch to a digital recorder manufactured by

NDS Group

(NNDS)

, the wire service quoted Carey saying.

News Corp.

(NWS) - Get Report

has major stakes in both NDS and DirecTV.

NDS CEO Abe Pelad was quoted by

Dow Jones News Service

on Tuesday saying technology glitches in the DirecTV DVR have been "mostly resolved" and that the device should be ready for release in October.

TiVo was recently down 54 cents to $5.45. The stock has swung wildly this year, adding about 50% in mid-March after announcing a marketing agreement with cable operator

Comcast

(CMCSA) - Get Report

The shares topped out in late May at $7.75 after First Albany initiated the stock with a strong buy and the company posted a narrower-than-expected first-quarter loss.