Amazon-TiVo news pushes up stock
EmptySEATTLE -- News that Amazon.com Inc. and TiVo Inc. will soon let customers download movies from the Web to their set-top boxes shook up the stocks of companies involved in digital video services.
Shares of digital video recorder maker TiVo and Web retailer Amazon.com both gained ground after the companies announced a partnership that will roll out in full later this year.
The service, Amazon Unbox on TiVo, advances existing offerings from Microsoft Corp. and Apple Inc. that pipe downloaded video and music to computers, TVs or portable media players.
TiVo's stock rose 49 cents, or 8.9%, to close at $5.97 on the Nasdaq Stock Market, while shares of Amazon.com climbed 71 cents, or about 2%, to $38.98.
Meanwhile, shares of online DVD rental service Netflix Inc., which recently started letting subscribers also stream movies to home computers, jumped 58 cents, or 2.6%, to $22.90 on the Nasdaq.
In a note to investors Tuesday, Citigroup analyst Tony Wible wrote that he expects Netflix to successfully defend against challenges from Blockbuster Inc., which launched a hybrid in-store/online rental service last year.
Wible believes Blockbuster's success with Total Access came at the expense of its in-store customer base, not Netflix's market share. Blockbuster's stock fell 2 cents to $6.86 on the New York Stock Exchange.