TiVo, Netflix Deal in the Works?

[Gregg Lengling]

The industry is abuzz about a possible partnership between TiVo and Netflix, the company known for renting DVD movies by mail via its Web site.

Any agreement between the companies would allow Netflix to download rental movies into TiVo's digital video recorders. Both companies wouldn't comment on the speculation, but both have close ties: The companies are based in the San Francisco Bay area and TiVo CEO Michael Ramsay serves on Netflix's board of directors.

TiVo has more than 1.9 million customers, and Netflix has more than 2 million users.

Any proposed move by TiVo and Netflix would follow RealNetworks partnership with Starz Encore Group, in which the two teamed up to rent movies that can be downloaded via the Internet into a computer.