New system by Amazon and TiVo to allow downloading movies direct to TV

On Wednesday Amazon.com Inc. together with TiVo Inc. are to begin testing their new service, which will allow users to watch videos that are rented or bought on-line directly on their televisions. The new system is to link personal computers with TVs.

The announcement stated by the officials of the two firms was made after Wal-Mart Stores Inc. presented a test version of service that downloaded video. This kind of service is the first by a major retailer to include the backing of all major movie making studios from Hollywood.

The partnership of the two companies extends the download service of Unbox, which is an on-line retailer. In addition Amazon and TiVo take the service a step further than other on-line video stores. Various movies and TV shows that are available on “Amazon Unbox on TiVo” users will be able to download from computers to a TiVo box of a specific customer. This will allow customers to playback video files on their TV set.

Nowadays technology companies are looking forward to make users split their time between the process of watching traditional media, web-surfing and playing video games. According to Richard Greenfield, who is an analyst at Pali Research, 2007 is the years when the consumer spendings on DVD falls. Now movie studios have the goal of protecting the DVD sales, which are quite profitable, against Internet video outlets.

Those that have already subscribed to TiVo are paying about $ 18 per month. Thus they pay for watching Internet videos and listening music. The service also has some security features for kids. Subscribers will be able to rent or buy movies and TV shows from several studios and networks. Those that will provide video files are: CBS; Fox Entertainment Group, owned by News Corp.; Universal Studios Home Entertainment, managed by General Electric Co. and Warner Bros. Entertainment, owned by Time Warner Inc.

users will be able to buy TV series for $ 1,99 and movies the price of which ranges between $ 9,99 and $ 14,99. They can also rent movies for a price that starts with $ 1,99. The video that the customer acquires is stored in his or her personal list at Amazon.com.

The system is currently being tested, and as the representative of Amazon and TiVo state, it will soon be available on more than 1.5 million TiVo boxes which have a high-speed Internet connection.

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