COPYCENSE

"Netflix and TiVo are about to join forces making it possible for customers to download movies over the Net to their television. Later this month the companies plan to unveil a simple but significant partnership that could shake up the media world. Subscribers who belong to both services will be able to download their Netflix DVDs over the Internet directly into the TiVo boxes in their homes, instead of receiving them in the mail.

"Hollywood will be watching closely to make sure copyright protections aren’t hacked, which could lead to its biggest nightmare: high-quality versions of its movies released freely onto the Internet.

"Cable customers could prefer the larger Netflix selection and download movies to their TiVo boxes using cable’s own pipes. Unlike the phone companies, which are regulated as ‘common carriers’ and forbidden from discriminating against customers or content, cable firms don’t have to accommodate their rivals’ traffic on their networks. But if cable closes the door to the Netflix downloads, customers could migrate to the phone industry’s broadband offering, DSL."

Brad Stone. I Want a Movie! Now!. Newsweek. Sept. 13, 2004.