Wired: Netflix, TiVo Promise New Service

DVD rental firm Netflix and digital video recorder firm Tivo confirmed the rumors and announced a partnership that would deliver video on demand to homes with Tivo boxes. Netflix will tackle the licensing arrangements with movie studios, and Tivo will create the necessary improvements to its hardware to make the product work. Adopting the Apple Computer strategy that worked with music publishers, the Tivo/Netflix team will approach studios with a new digital rights management (DRM) standard positioned as a means to prevent outright copying of digital movies once they get downloaded.