Jim Denney: My name is Jim Denney and I am Vice President of Product Marketing for TiVo.

Benjamin Higginbotham: What are the new announcements for TiVo in Consumer Electronic Show?

Jim Denney: So this year at CES, we announced few different things. One was the available with, we are working with company called Music Choice to make as a TiVoCast partner it’s downloadable content, to make music videos available as another content type for TiVoCast. Another was working with Real Networks to make Rhapsody available on the TiVo, so for broadband connected TiVo’s, you be able to access your Rhapsody play list and stream music from Rhapsody and play it back on your TiVo.

Benjamin Higginbotham: That’s cool.

Jim Denney: Both those will be later this year. The other thing we announced was, here at the show we're showing the Comcast-TiVo software running on the Motorola, the Comcast, Motorola set-top box.

Benjamin Higginbotham: What’s interestingly new about the Comcast version of TiVo, how is that difference in say, series2 or series3?

Jim Denney: Well, one of the big differences is that, it’s delivered via software update to the Comcast set-top box. So, it’s substantially TiVo, it’s a dual tuner HD device, just like there, because it is the platform that they had on now. All that runs at TiVo UI with very nice integration of on-demand into that UI.

Benjamin Higginbotham: So, it’s lot like a series3, then it will do high definition video, it will have the TiVo UI for recording nor to playback all other fun jazz?

Jim Denney: Right. In terms of Core DVR it functions very much like a series3. What the difference between the two is the innovated box has on-demand. The series3 focuses on broadband and some of the other broadband applications and some of the other stand-alone specific features that we have.

Benjamin Higginbotham: So, the Comcast box can do the 2-way communication with the head end. You can do the paper view events, you can do the on-demand events?

Jim Denney: Yes.

Benjamin Higginbotham: But, you cannot do the broadband that the series3 can do, so you can’t do the downloaded show or stuff like that.

Jim Denney: And there are other features that would potentially follow on that it just want to do out of the gate. Things like kid’s zone, online scheduling things along those lines. There is a list of features that differentiate both the Comcast box, it will be a great device when it hits the market, as well as series3.

Benjamin Higginbotham: Are we waiting for Comcast to deliver the box or when is that?

Jim Denney: Oh, , the boxes are out. , so this will run on all the DVR’s that they are deploying today, but it’s a matter of rolling the software out into their network and that’s really under their control. So, I believe they said that they will be rolling it out over the course of this year, so just later this year.

Benjamin Higginbotham: Lets talk about the series3 for a moment, because there is a, you have got your series2, which is essentially a standard definition box and you got your series3, which is your high definition box?

Jim Denney: Right.

Benjamin Higginbotham: The series3 has a nice new front plate and this got the OLED display and that’s all cool, but there seems to be feature disconnect between the series2 and the series3 with the broadband content, the core functionality is essentially the same.

Jim Denney: Right.

Benjamin Higginbotham: I can record my shows high definition/standard definition over the air, but TiVo to go the Ethernet port seems like I’ve got a lot features on the series2 that I am missing on the series3?

Jim Denney: Well so, when we were developing the series 3, we wanted to make sure we focused on the core DVR functionality. So, we focused on the physical aspects of it, the OLED  display in the front that shows you what’s being recorded at any given time. The industrial design of it, the remote control thats back lit, so we focused a lot on the physical features, the series3, we also focused a lot on performance in playback. So, we wanted to make sure that HD files are bigger, there is a lot of new technology in it. It’s a first CableCARD device that we made, so we have to get CableCARD to work through certification process. We worked with THX to make sure it is THX certified, in that we actually modified some of the way the video is treated to hit the THX requirements for both video and audio. So, we focused a lot on performance and core DVR functionality, knowing that we can update software on the box to unleash some of the other features as it goes down the course. Plus the other thing, you see is somehow it’s a function of development timelines, development schedules, we are developing a platform at the same time we are developing new features to the series2. You don’t want to do that on a platform that you are still developing, so you want to lockdown on a set of features. Once that platform is locked down, we can work on enabling these other features. So, I think the things you are talking about are things like multi-reviewing TiVo to go for this specifically, so we will update software in the box to enable both those, later this year and we are working on it. It is actively being developed. There is also another process that we have to go through for all the digital contents. So, there is 2 different content types that the series3 deals with. One is Analog content or over the air content, which stays at different set of rules for a content handling then does digital cable and HD or premium channels that come through the CableCARD. So, things like, programs that come through the CableCARD are handled differently than the programs that don’t come through the CableCARD.

Benjamin Higginbotham: Will that affect my TiVo to go, and other features like that when the product is released in series3?

Jim Denney: Well there are two things. You have to go through a , a CableLab Certification process to let content out a digital output on any cableCARD product. So, we are in the midst of going through that certification now, that’s also what enables the expandable storage. So, basically anytime, any bits go out the cable industry wants to make sure that they are well protected or at least follow up the guidelines that they put forth. So, TiVo would go and multi-reviewing will be released on the series3 and there might be a difference in what you can do with the digital content that comes through the CableCARD and with the analog content that doesn’t actually come through the CableCARD.

Benjamin Higginbotham: Is that why we’ve seen a delay in the external eSATA hard drive, because that’s…

Jim Denney: We are going through that certification process now with CableLabs that continues on, but that is eSATA, that’s exactly we are waiting for to turn the eSATA port on.

Benjamin Higginbotham: So, essentially the problem isn't actually with TiVo is like CableLabs that really-really wants to protect their content and then force you to go through this process?

Jim Denney: Wants a little bit of both. , I certainly wouldn’t blame CableLabs for all that. The analog content that doesn’t goes through the CableLab regulation, it’s our responsibility to enable that functionality, and like I said we are doing that. I am just trying to set the expectation of when it does come, there might be difference in behavior between those two types of content and I just don’t know yet. So, as we get closer to that -- through that certification process, I hope much better in sight. .

Benjamin Higginbotham: TiVo on the series2 offers downloadable content, podcast and what not, but there is kind of even on series2 there is an artificial wall around the content, it has to be part of it the TiVo network as it were. Where as if you look at an iTunes model or Democracy Player model, it’s anyone can join there, they play their channel guide and any podcaster can get in there. Is that something that TiVo is looking at , so we recording this in 1080p, there really is no reason that this file shouldn’t be able to playback on my series3, if anyone who wants to subscribe to it, manually or automatically?

Jim Denney: Well there is probably three different questions embedded in that one question. So, one is just getting content out of the box and the difference between series2 and the series3 in terms of TiVoCast, which is the direct delivered content. So, that the series3, that gets caught in that same timing issue, right. As we are literally rolling our TiVoCast as at the same time we are developing the platform. So, there is a software release that will be pushed out to the series3 in a short period of time, counted in weeks - not months. We will enable TiVoCast on the last series3.

Benjamin Higginbotham: Oh I am excited. That is awesome.

Jim Denney: For the core things that exist on the series2 today. The things like podcasting, etc., already work on series3, so yahoo photos and all the music photos and products and more applications, they already run on the series3, so that’s not a problem. Guru Guide, Enablement, the online scheduling all that already runs on the series3. So, in terms of difference between the series3 and the series2, that will bring, be brought in a priority sooner than multi-reviewing over that. So, the second thing was the walled garden idea, be able to get whatever content you want, on to it. So, there are two things: one, there is a category of content that we want you to be able to get to on the series3 very simply. We would like to expand that as much as possible and we will continue to expand that, but without a PC involved. So, in that case it’s got be in the format that we know it plays back. There is level of co-operation that we need, plus we need to navigate that e-wide to do it. So, there is TiVoCast partners and we will expand those TiVoCast partners, like we deal with Music Choice, this week. Separately, there is enough date to the TiVo Desktops offer, that’s underway now that will be available in a preview version in probably the next couple of months and what that does is build a bridge, just like TiVo to go, it will ask you to bring content from your TiVo set-top box to your PC, it effect we allows you to reverse that process, so content that’s on your PC can be transferred over your TiVo. So, that the first idea of there is just to get your TiVo files back, but TiVo Desktop Plus and the Sonic Software on the PC and in fact the new Roxio Software for TiVo go for the Mac, all have transcoders in them, so the next version of TiVo Desktop Plus with allow you to bring mpeg4 files or Microsoft Windows Media files or Quick Time files and it will trans code it and put into a format that TiVo can playback. So, that’s the first incarnation of opening a path, so you download a video podcast or you get something from google video or whatever and it will transcode into the right format, and that TiVo will playback and shows up in your living room. We are gonna evolve that overtime and the first release of that will be a preview release, because we wanna open it up and we want people to experiment with it little bit and get some feedback, what’s working, what’s not. The thing about web-videos specifically is, the variant in the number of variables in the video is quite large. So, we want to make sure that, that were transcoding things correctly. So, that will come out as preview version, then will come out with the release version and I accept it will spot those three formats first and then we will evolve the number of formats that bridge is built between.

Benjamin Higginbotham: Now, it feels like a good first step, the ultimate solution is, I firmly believe there is about to be a big war for the living room. We are gonna start seen with Apples TV product, I think the contenders are Apple TV, the new NetGear HD product, UXBox 360, and Playstation 3 those are like the players on the board right now and its just beginning, its getting that HighDef content from online to your television in any device that’s hook to your plasma or HD screen is gonna become invaluable and been able to download directly to that device, is gonna be a huge deal and you make out points in format, but if there were a spec sheet that says, you video netcasters must follow the spec sheet and then your RSS feed must be pre-approved, but then you, just like Apple iTunes as director, where they have to pre-approve that feed make sure works, but then wants to submit it off it goes, you know what’s kind of work in the directory. That feels like it kind of logical step to or just a place to go.

Jim Denney: Well like I said, it will take multiple angles at this, direct delivery to the set-top box than using the PC as a bridge between all kinds of content and TiVo set-top box. The other thing you mentioned was delivery of HD, so the other thing we planned for the series3 is playback of downloadable HD content. So, we haven’t announced timeline or anything like that, but the hardware in the series3 is capable of playing back VC1 content or AVC content for that matter. So, we will as time goes along plan on enabling that functionality, so that the same type of download capabilities you have for standard definition. The series3 will be able to handle decode of HD content at the same time.

Benjamin Higginbotham: What about, right now the series3 uses the CableCARD the stand of their original form CableCARD 1 and it will take 2 single stream cards or one multi-steam card, but it’s…

Jim Denney: Right now its only two single stream cards. The platform is capable of multi-steam card technically capable, you need to go through certification. We are in the midst of going through that certification now.

Benjamin Higginbotham: I do not really. See my cable operator only has single stream card so, but that’s…

Jim Denney: You will see more of multi-stream cards appear, but…

Benjamin Higginbotham: But that’s one way communication with the box only, its not bi-direction unless CableCARD 2, I believe, the next version of CableCARD. As I understand it a totally different form factor, so will that be when those CableCARD’s will come out, will that be a totally different TiVo, would that be series4?

Jim Denney: 2-way CableCARD or 2-way communication in the contest of CableCARD is undefined right now. So there is not really a mechanism to build a 2-way device with 2-way CableCARD under the current rules that allow you to bring your own UI and everything else. Everything that you’d need to build a TiVo in a 2-way in 2-environment is not in place. So, we will have to wait and see, I mean we work with our cable partners, we work with CEA, we work with FCC to navigate their alliance get accordingly. So, in the mean time we are for 2-way like communication or 2-way like services, we are creating, we are using the broadband connection to enable things like broadband download and the broadband applications. We will work with partners like Comcast to create an integrated box.

Benjamin Higginbotham: Thank you very much for your time and answering all of our questions, I realize some of them are hard and but we are curious to know what’s going on with you. You got very passionate community of evangelists, so…

Jim Denney: We want to be able to take care of them…

Benjamin Higginbotham: World is good and bad, because either if you make even a slight miss step, if they don’t understand the reasoning behind the decision like in scream bloody murder, but there is usually very good reason behind every decision made.

Jim Denney: And we do listen to those customers. We will listen to the impatient please, whether we can fulfill them all or not is a different story, but it definitely goes in their best.