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Cox has ordered a customized version of TiVo's software which it will begin to load into its DVRs early in 2007. The DVR and interactive advertising software will be downloaded into both new units and DVRs already installed in subscribers' homes.

The deal validates the direction TiVo has been trying to move in, away from manufacturing DVRs and toward licensing its technology. TiVo's licensing position appears to have been strengthened by a recent court decision that upheld TiVo's patent rights against EchoStar (see story).

TiVo currently has agreements with Comcast and DirecTV. Financial terms of the deal with Cox were not disclosed.

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