TiVo said it would finish the fiscal year with 1.38 million subscribers, ahead of its previous estimate of 1.27 million. The company added 209,000 subscribers in the third quarter, largely due to its arrangement with DirecTV, which accounted for approximately 150,000 of those subscriptions.
While DirecTV has been booming and helping deepen TiVo's penetration, the status of the relationship between the two companies has been the source of worry for some TiVo shareholders. Back in April, Rupert Murdoch's News Corp.
It was a good question, and one that was essentially answered last month when TiVo made a partnership deal with News Corp.'s 85%-owned Fox Entertainment
Looking ahead, TiVo -- previously a selection in Motley Fool Stock Advisor -- also said it would add 1 million to 1.2 million subscriptions in 2004, bringing its total to 2.5 million subscribers. In addition, service and technology revenues would rise to between $90 million and $100 million for the year.
The third quarter was rock solid, with TiVo gaining considerable momentum. As long as the company can maintain its relationship with DirecTV, TiVo's a safe bet to deliver shareholder value for years to come.
Talk TiVo on (where else?) the TiVo discussion board! Only at Fool.com. Jeff Hwang can be reached at JHwang@fool.com.