TiVo 2006 Annual Report Download - page 8

Table of Contents
increasing numbers. We have announced partnerships with Comcast and Cox to deploy a software version of the TiVo service to run on DVR hardware
manufactured by a variety of set-top box manufacturers. We began engineering trials with Comcast during fiscal year 2007 and expect both Comcast and Cox
to begin initial deployment of their TiVo-enabled DVR solution during our fiscal year 2008.
Extend and Protect Our Intellectual Property. The convenience, control, and ease of use of the TiVo service is derived largely from the technology we
have developed. We intend to continue to design, develop, and implement innovative technological solutions that leverage and enhance the TiVo service
offering. We have adopted a proactive patent and trademark strategy designed to protect and extend our technology and intellectual property.
Promote and Leverage the TiVo Brand. We believe the strength of the TiVo brand is an advantage in attracting consumers, cable and satellite
television providers, and other customers. In the past, we have dedicated substantial resources to promoting our brand through multiple advertising and
marketing channels, participation in trade shows, sponsoring events, merchandising, and by leveraging strategic relationships. We expect our advertising
efforts will increase in fiscal year 2008 relative to the prior year as we more actively promote TiVo's brand and features. In addition, we expect that Comcast
and Cox will begin to promote and deploy TiVo-branded DVR software to their subscribers during fiscal year 2008.
Extend TiVo Product Beyond US Market. We believe there is a large opportunity to leverage the TiVo service and technology outside the United
States. For example, we have a minority interest in TGC, Inc. which we have licensed certain of our technology to for use in specified Asian countries,
including China and Taiwan, and a distribution agreement with Cablevision Mexico, which is owned by Televisa, to provide the TiVo service to digital cable
subscribers in Mexico City. We expect to consider additional international partnerships and distribution agreements over the next year.
Our Technology
TiVo has developed a technology portfolio that makes available the TiVo service on a standalone retail DVR product line, on the integrated set-top
boxes of a major satellite television provider, DIRECTV, and is expected to be available on certain set-top boxes for cable television providers, Comcast and
Cox, during fiscal year 2008. We anticipate making the TiVo service available on set-top boxes of additional cable television providers in the future. TiVo's
technology for enabling the TiVo service includes: the TiVo service client software platform, the TiVo service infrastructure, and TiVo-enabled DVR
hardware design.
TiVo Service Client Software. The TiVo service client software runs on TiVo-enabled DVRs. It consists of operational software required for a TiVo-
enabled DVR to deliver the TiVo service. The software includes system components such as a media-oriented file system, a high-performance transactional
database, an integrated security system, and application components such as media management and user interface. We have enhanced the client software to
support multiple services and applications, such as digital music and photos. The TiVo client software manages interaction with the TiVo service
infrastructure. After the initial set-up of the TiVo service, the TiVo-enabled DVR will automatically connect to the TiVo service infrastructure over a dial-up
or broadband connection to download the program guide data, client software upgrades, Showcases, and other content.
We are currently extending the TiVo service client software to enable future deployment on certain commonly used integrated DVR set-top boxes.
Under the terms of our agreement with Comcast, for example, Comcast intends to make the TiVo service available as a software upgrade to the already
installed base of certain Motorola DVRs deployed by Comcast. We also intend to extend the TiVo service to run on other DVR set-top boxes capable of
supporting Comcast-deployed middleware and forthcoming Open Cable Application Platform (OCAP) solutions.
TiVo Service Infrastructure. The TiVo service infrastructure enables the ongoing operation of the TiVo service, managing the distribution of
proprietary services, and specialized content such as program guide data, Showcases, and TiVo client software upgrades. It interfaces with our billing and
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