Philips Electronics announced equity investment in TiVO, Inc.
Agreement Reinforces Commitment to Philips Personal TV™
PALO ALTO, Calif., April 28, 1999 - Royal Philips Electronics announced today that
it has made a strategic investment in TiVo, Inc., the Sunnyvale, Calif.-based leader
in the development of Personal TV services. Terms of the investment have not been
"Our investment in TiVo reflects our commitment to Personal TV in general, a category
which we think will fundamentally change the way people view television," said Roel
Pieper, Executive Vice President, Philips Electronics. "Research suggests that consumers
want a more personal and convenient viewing experience. After reviewing the various
alternatives, we selected TiVo because it delivers the best solution available today
for the delivery of Personal TV content and services. The TiVo service is as easy-to-use
as pushing a button on your remote control."
Designed to put the consumer in control of their television experience, Personal
TV offers viewers the ability to watch what they want, when they want as well as
gives them the ability to pause live television. With the TiVo service, the viewer
can record their weekly favorites using a season pass and rate what they enjoy watching
using a simple "thumbs up" and "thumbs down" on the remote control. Based on the
viewer's ratings, TiVo searches through more than 100,000 programs that are broadcast
each week, uniquely recording favorite programs and making recommendations on other
programs of interest. At the same time, Personal TV will also create new opportunities
in the area of E-Commerce through a television portal. By creating a direct link
with viewers, Personal TV will make it possible for consumers to make purchase decisions
or learn more about specific products directly via their television. Personal TV
can add a new level of interactivity and ease of use to home shopping applications.
"Philips' partnering with TiVo brings the power of a worldwide brand leader to the
delivery of this revolutionary new service" said Mike Ramsay, founder and CEO of
TiVo. "Philips is a leader in the innovation and delivery of new technologies. Knowing
that TiVo is backed by one of the largest consumer electronic manufacturers in the
world secures the position of the Personal Television category."
Philips and TiVo have agreed to collaborate on a range of products, the first of
which is a stand-alone Philips Personal TV Receiver with TiVo service for the U.S.
For more information on this product, consumers can call 1-877-FOR-TIVO or visit
the web sites www.tivo.com or www.philipsusa.com. Philips has agreed to market and
distribute this device in the U.S. through its retail channels.
Philips, DIRECTV and TiVo have previously announced that they will collaborate on
the development and marketing of a Philips-branded DIRECTV System receiver that
will allow viewers to get both DIRECTV® programming and the TiVo Personal TV service
in a single set-top box. The DIRECTV digital television entertainment service has
more than 4.8 million subscribers in the U.S.
Initial Philips Personal TV products will be introduced in the United States. Philips
has agreed to work with TiVo to explore opportunities in other markets including
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics
companies and Europe's largest, with sales of over US$ 33.9 billion in 1998. It
is a global leader in color television sets, lighting, electric shavers, color picture
tubes for televisions and monitors, and one-chip TV products. Its 233,700 employees
in more than 60 countries are active in the areas of lighting, consumer electronics,
domestic appliances, components, semiconductors, medical systems, business electronics,
and IT services (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam
and other stock exchanges. News from Philips is located at www.news.philips.com.
News about Philips can also be found on the U.S. web site www.philipsusa.com.
TiVo™, headquartered in Sunnyvale, Calif., is the originator of personal television.
The TiVo service allows consumers to take control of their television viewing by
providing the ability to pause, rewind, instant replay and playback in slow-motion
any live television broadcast. As part of TiVo's easy-to-use service and patented
consumer electronics technology, viewers can time-shift their favorite television
shows and create a customized television lineup for anytime viewing. The company
was founded in August 1997 by former Silicon Graphics senior vice president Michael
Ramsay and vice president James Barton, both of whom have been instrumental in earlier
generation efforts of interactive video-on-demand systems and Hollywood special-effects
technology. TiVo's board of directors includes Stewart Alsop of New Enterprise Associates,
Geoff Yang of Institutional Venture Partners and WebTV founding director Randy Komisar.
The stand-alone TiVo/Philips set-top box is currently available via TiVo's toll
free number at 877-FOR-TIVO or on the web at www.tivo.com.