As mentioned in the article cited below, TiVo was first in talks with NetFlix however NetFlix did not have the resources that Amazon does. The collaboration allows users to download a missed TV show episode or an entire movie for a small fee. This collaboration is called Unbox.
The introduction of Amazon to TiVo brings many things to mind. In my opinion Blockbuster and many other smaller video rental stores will suffer severely due to this new technology. The convinience of renting a movie and being able to receive it almost instantaneously can not compare to the old process of renting a video. There is less effort involved and perhaps even less money involved when considering gas, rental and late fees.
Many existing TiVo customers already have the hardware needed to use this technology. As of now Apple is the only other competition in this market but Apple's hardware would run for at least $300. Which puts the Unbox in a competitive position.
I also think that NetFlix will introduce a similar product in the not so distant future so that they can compete with the changing technology. NetFLix introduced an innovative idea by allowing people to rent from the comfort of their own home mailboxes but as technology changes so will the products.
Source:
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/16641224.htm
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