Silicon Valley video recording pioneer Tivo and Best Buy have struck an alliance in which Tivo's digital video recorders will be heavily promoted at the electronics retailer's stores, the New York Times reported.
Tivo is developing a version of its set-top box, which records TV shows and lets consumers skip commercials, to be sold in 1,100 Best Buy stores. Those digital video recorders will allow Best Buy products and services to be advertised to Tivo subscribers on their home TVs.
Best Buy is making a multi-year commitment to market Tivo. Best Buy is also financing a project to bring Tivo's software and video search tools to Best Buy's own brand of electronics, including its Insignia TVs.
The benefits for Best Buy include extending its relationship to customers outside of its stores. Best Buy moved down that path when it bought the music service Napster in September. Tivo is going to make Napster music available to its subscribers on their TVs. Tivo also wants customers to stop thinking of its as just a DVR box company.
If these guys get really cozy, don't be surprised if Best Buy acquires Tivo one of these days.