In a move that strengthens the relationship of two pioneers in the interactive television (iTV) sector, DIRECTV Thursday said it would use TiVo for its next generation of digital satellite receivers.

The El Segundo, Calif.-based unit of Hughes Electronics Corp. says it will develop its next generation advanced DIRECTV receiver, based on TiVo's recently announced Series2 platform.

DIRECTV is preparing the new low cost, easy to use product that will give customers a suite of DVR-based services and capabilities.

"DIRECTV and TiVo have changed the way people watch TV, and the next generation advanced DIRECTV receiver utilizing TiVo technology promises to offer consumers an even more compelling and robust home entertainment experience," says DIRECTV executive vice president Larry Chapman.

Chapman says DIRECTV will also continue to market and distribute the current DIRECTV Receiver with TiVo service.

The unit follows more than 225 channels available with DIRECTV and lets TiVo viewers to find and schedule their favorite television shows automatically and digitally record up to 35 hours of video content without the use of videotape.

Under the new agreement, DIRECTV will be able to use the new platform and the TiVo technology to develop and launch new services either by itself, with TiVo or in conjunction with third parties.

Also as part of the new arrangement, DIRECTV will assume primary responsibility for customer acquisition and support, as well as packaging and branding of DIRECTV's DVR services. In addition, DIRECTV has agreed to distribute TiVo services that will enable advanced automatic recording capabilities and the delivery of promotional video to the receiver's hard-disk drive.

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The new units should be available for the 2002 holiday season.

"We are jointly developing the gold standard for integrated set-top boxes, one that achieves dramatic cost reductions and delivers exciting new services for consumers," says TiVo CEO Mike Ramsay.

San Jose, Calif.-based TiVo competes with Santa Clara, Calif.-based SONICblue for market share of the DVR space.