TiVo, Netflix Announce Alliance

ALVISO/LOS GATOS, October 30: TiVo subscribers will be able to
stream thousands of movies and TV episodes directly from online movie rental
service Netflix, as part of a deal announced by the two companies today.

The offering will be available to TiVo Series3, TiVo HD and TiVo
HD XL subscribers. A test begins today in several thousand U.S. households with
a view to a December launch. The service will be offered at no additional
charge to customers who subscribe to both services.

"For Netflix and TiVo subscribers, this collaboration offers
a fabulously easy way to enhance the enjoyment of watching movies in the
comfort of their living rooms," said Reed Hastings, the co-founder and CEO
of Netflix. "Subscribers to Netflix and TiVo are avid movie watchers and
this combination gives them immediate access to all of the great content
available through TiVo and the thousands of additional choices available to be
streamed instantly from Netflix."

Tom Rogers, the president and CEO of TiVo, added: "Joining
forces with Netflix creates the ultimate video-on-demand service and solidifies
TiVo's leading position as the one-box solution for aggregating, searching, and
delivering the best content available anywhere right to the TV. Adding Netflix
to our already vast library of content differentiates TiVo even further from
any other offering in the market today."

—By Mansha Daswani