Best Buy And TiVo Partner To Promote Each Other


Best Buy and TiVo will come together in a cross-promotion partnership, reports the NYTimes.

Best Buy will aggresively push TiVo’s products in its stores and TiVo will let Best Buy advertise its in-store products and services to Tivo subscribers. Tivo also plans to give its subscribers access to Best Buy’s Napster on their TV screens.

This deal plugs gaps in both businesses. Best Buy will get visibility outside its stores. TiVo can take advantage of Best Buy’s customer interaction to position itself as more than just a recording device.

TiVo has been struggling to educate customers that they can also use the device to download and stream movies from Amazon and Netflix, watch vidoes on YouTube and buy movie tickets on Fandango.

The company recently cut its marketing budget to less than $1 million in April 2009, from $9 million in 2007, the Times says.

Best Buy’s stock doubled in Q1 09, but it faces tough competition from ubiquitous and low-price leader Wal-Mart.

Image: Nonie

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