Rogers: TiVo-Pace integration will be completed in 2013

Solution will be more cost effective than Premiere, says CEO
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TiVo (Nasdaq: TIVO) expects it will complete the software integration needed for cable MSOs such as Mediacom and GCI to deploy a Pace XG1 gateway running TiVo's user interface next year, CEO Tom Rogers said Wednesday.

Tom Rogers, TiVo

Rogers (Source: TiVo)

While TiVo has struck deals with several cable operators to deploy its TiVo Premiere set-top as a primary DVR for subscribers, Rogers said the Pace solution will be more cost effective for operators than Premiere. The Pace XG1 contains six tuners and 500 GB of storage capacity.

"The Pace offering in the United States is one that a number of our MSO customers are very interested in. Some will begin their rollout of TiVo with our hardware. But clearly, there was a view that Pace as a major manufacturer could have a high-quality lower cost hardware solution than our TiVo hardware represents," Rogers said during TiVo's third-quarter earnings call.

Comcast (Nasdaq: CMCSA) is the first U.S. MSO to deploy the XG1 gateway, but it is running its own Xfinity X1 user interface on the devices in Boston and Atlanta. Mediacom and GCI have said they will deploy XG1 using TiVo software. And while TiVo has an agreement with Charter Communications (Nasdaq: CHTR) that could allow the MSO to deploy its software and program guide, the MSO has put its TiVo deployment plans on hold as it evaluates options for deploying cloud-based digital video services.

"Charter is going through evaluation of its hardware strategy and its whole [capital spending] approach to advanced television and they're considering a number of hardware solutions. We're in a position, I think, to be able to provide our [user interface] and overall software regardless of where they go in that regard," Rogers said.

In addition to striking set-top and software deals with cable operators, TiVo has had success suing pay TV providers and hardware vendors for patent infringement. In September, it reached a settlement with Verizon (NYSE: VZ) that will pay TiVo at least $250 million.

TiVo generated $61 million in service and technology revenue during the third quarter, up 18 percent compared to the same period in 2011. It posted $59 million in net income, compared to a net loss of $24.5 million this time last year.

For more: 
- see the earnings release
- see transcript from earnings call

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