NEW YORK (CNN/Money) -
AOL Time Warner is working on its own offering for cable customers that would compete against personal digital video recorders such as TiVo and Replay TV, according to a published report.
The New York Times said the offering, tentatively named Mystro TV, would give cable viewers the same type of ability to watch shows when they want to, even if the show has already aired and they did not record them in advance. It would also allow customers to fast forward or rewind programs while watching them.
The Times said the AOL effort has been under development for two years, and that the company hopes to roll out the service to customers within the next two years. AOL also said it hopes to be able to sell the service to other cable operators, not just Time Warner Cable customers.
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The paper says the AOL offering would be preferred over services such as TiVo and Replay TV because it would let networks set the parameters dictating which shows users can reschedule. It would also create ways for networks to insert commercials even as viewers are rewinding or fast forwarding programs. It would even allow networks to select which homes would see which commercials, based on demographic information.
Many networks see personal digital video recorders as a threat because they allow viewers to skip commercials, reducing the value of the programs for advertisers who provide a significant portion of the networks' revenue stream.
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Mystro TV faces more than just technological challenges, the paper reports. Unlike recording on a personal hard drive, Mystro would store the program at central hubs for the cable provider, and that would entail reaching licensing agreements with the owners of the shows — such as studios, networks, producers, and others.
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