Cisco buying TiVo rumor?

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Cisco buying TiVo rumor?

Thomas Hawk sent me a pointer to Cnet publishing a rumor that TiVo might be bought by Cisco. Both parties involved aren't talking, which doesn't say much, but this looks somewhat plausable after Cisco's acquisition of Linksys a couple years back and Scientific Atlanta more recently. Of course, Cisco is in the business of networking. With Linksys, though it was a push into the home market for Cisco, they haven't really pushed Linksys to make smart home products -- Cisco has continued to focus on making good cheap network hardware. It's too early to tell what they'll do in the set-top box market.

I could imagine a post-Cisco TiVo could really be an attractive smart home concept that could act as a DVR, wireless hub, music/video network streaming station, among many other things. I'm not entirely sure Cisco wants to move in that direction though, away from their core business of networking products for the enterprise and home. They'd have to dip heavily into the software world to run something like TiVo and build a smart home operating system and they'd have to get in bed with content companies that would fight tooth and nail to make sure no free movies or shows are moved around anyone's network without their say.

So on a scale of 1 to 10, with 1 being never ever and 10 being totally likely to happen any day now, I'd put a Cisco buying TiVo rumor at a 6.

by Matt Haughey January 30, 2006 in News

Comments

For what it's worth, Cisco also provides enterprise IPTV systems :

http://www.cisco.com/en/US/netsol/ns340/ns394/ns158/ns88/networking_solutions_package.html

Posted by: Stephen Duncan Jr at Jan 30, 2006 1:49:08 PM

Makes perfect sense with the news a few weeks ago that Cisco plans to move into the "consumer electronics market."

http://www.allheadlinenews.com/articles/7001954243

Posted by: Josh at Jan 30, 2006 2:22:19 PM

So this is what it might take to get some decent Wireless network security protocols and speeds on a TiVo?

Seriously, though, while Cisco isn't in the business of software development, running Linux on some cheap hardware IS something that Linksys knows a bit about. Further, TiVo comes with their own software engineers who have a fairly good track record. I'd say the major obstacle is going to be, as Matt mentions, the content companies. Even a company with the clout of Cisco has to turn a bit green faced with that prospect.

Posted by: Jason C at Jan 30, 2006 3:17:54 PM

Well ... probably worth mentionning that Cisco bough KiSS as well, which confirms the intention to go deeper into the consumer market.

However, Cisco said it buys companies that offers a signifacant competitive advatage. To me TiVo will not bring much to Cisco compared to Scientific + Linksys + KiSS. Not to say that TiVo will cost a lost of money, just after the Scientific Atlanta acquisition!

So I would say ... 2/10.

Posted by: Some good friend. at Jan 30, 2006 3:32:42 PM

IMHO, it'd actually brilliant from Cisco's perspective.

Scientific Atlanta already has relationships with the cable companies - but their software leaves a lot to be desired. Put Tivo software on the cable companies' boxes and customers become more likely to buy the cable companies' DVRs. Scientific Atlanta then gets to sell more boxes to the cable companies, and the cable companies get more revenue.

The content companies get to reign in Tivo, at least somewhat, through the cable companies who become the ones buying the Tivo/Scientific Atlanta boxes.

Plus, with Cisco's IPTV efforts - combine those with the Tivo software so you can download programs over IPTV - so Cisco can get a great client platform for enabling them to sell their IPTV server equipment to the cable companies.

For customers, you'd get Tivo's software on cable company hardware at a monthly subscription price and they'd be able to get the dual-hdtv tuner non-DirecTV tivo's that we've been wanting the past few years. You'd likely lose a little bit of control in order to get the content companies' support - which is really the main customer negative.

It seems like mostly a win-win-win-win move to me.

Posted by: Jay at Jan 30, 2006 4:01:30 PM

Keep in mind that this would help TiVo as well as they are really scrambling for an HD solution and are practically frozen out of that market by SA and the cable companies.

Posted by: Kracko at Jan 30, 2006 5:01:32 PM

Not so helpful (for a potential TiVo acquisition) that the Comcast deal / implementation is in partnership with SA's most direct competitor - Motorola...

Posted by: New York at Jan 30, 2006 9:48:57 PM

I didn't know that Linksys products qualified as good _or_ cheap, last I checked they were mediocre and overpriced.

So if Cisco were to buy TiVo what would be the result? Here are some possibilities:
1. Mandatory Jazz music soundtrack while in Menus and while fast forwarding.
2. Higher cost (everything is worth more with a Cisco label on it).
3. Different TiVo features will now be ala-carte, pay extra for HMF (again), pay extra for IR Blaster funcionality.
4. The only networking configurations that will be supported is if EVERY piece networking & voice component in your house is a Cisco product, your'e on your own if you have a D-Link or SMC broadband router.

Posted by: Robert Aitchison at Jan 31, 2006 7:57:59 AM

Say it isn't so... Not that Linksys was great before, but they've significantly gone downhill since being purchased by Cisco. I know TiVo could use a hand, but is Cisco the best one to give it?

Posted by: kim at Jan 31, 2006 10:28:03 AM

can someone please get on the phone to john chambers right now and tell him to buy tivo before someone else does (namely another popular set-top box maker).

thanx
george from ny

Posted by: George at Feb 7, 2006 7:02:18 PM

.18.06.25.,Notes:I'vemetthematthe'cisco'butIamnottheirvibes..Lovefrom:K.P.(BigFishcatcher)

Posted by: appling at Jun 25, 2006 12:31:39 PM