Originally Posted by 1984
They are not moving away from hardware at all. They are just embracing more ways of receiving content. They are currently working on the OCAP-based Series 4 which works with SDV without the external adapter module as well as interactive features such as On Demand using a "compatability mode" where it defaults into the cable company's ugly interface for such features.
I can't quote the entire article, but the essence is that they are moving into other areas, including interactive banner ads, second by second viewership data (in a deal with, guess who-NBC Universal), and software loaded into other manufacturers DVR's.
This is from an interview with Tom Rogers.
That last, as from the article, will allow people to have:
"...access to TiVo's interface without requiring them to buy any more equipment."
"..(on Nov. 28) announced a partnership with a German company, Nero, which would would develop a way for the TiVo software to be downloaded to personal computers."
"These deals underscored TiVo's new emphasis on subscriptions and media services rather than hardware."
Long term, TiVo will get out of the hardware market where they are losing money hand over fist.
They don't need the hardware, as all of the functions of a TiVo are from the software.
While I expect them to say that they will remain in hardware, they will have to say that until their new plans are all in operation lest they kill their hardware sales now.