from TVPredictions.com:

TiVo Exit Could Open DoorsDespite popular wisdom, today's resignation of TiVo President Marty Yudkovitz doesn't mean the DVR service won't pursue a cable or satellite partnership. By Phillip SwannWashington, D.C. (February 1) -- TiVo President Marty Yudkovitz announced today that he's resigning because he says he wants to spend more time with his wife and children.

That's a nice sentiment, but Yudkovitz is also leaving because he would like to spend less time with company CEO and chairman, Mike Ramsay. Yudkovitz, a former NBC executive, was hired by Ramsay in 2003 to develop new industry partnerships, particularly with the cable TV industry. Despite industry buzz and early adopter loyalty, TiVo's future growth was in doubt because cable operators were about to launch their own DVRs. (In addition, TiVo's partnership with DIRECTV appeared vulnerable because the satcaster was about to be purchased by Rupert Murdoch's News Corp., which owns a rival DVR service.)
TiVo needed at least one major cable operator to offer its DVR service to its customers. From the beginning, Yudkovitz struggled to persuade Ramsay to accept cable's terms for licensing TiVo's software, according to sources. But in 2004, Yudkovitz and his team landed the Great White Whale of the cable TV industry. Comcast, the nation's largest cable operator with more than 22 million homes, agreed to license TiVo's DVR service.

But after reviewing -- and perhaps re-reviewing -- the terms, Ramsay nixed the deal, infuriating Yudkovitz and other TiVo officials. The Ramsay-Yudkovitz relationship could not be patched after that, which led, in part, to Ramsay's decision last month to step aside as company CEO. TiVo's board had lost confidence in Ramsay's ability to keep the company alive without a major cable or satellite partnership. The board believed that a new CEO might re-open some doors and develop new strategies. And that's why Yudkovitz's departure today does not signal that the company is no longer interested in a cable or satellite deal, despite some comments to the contrary by Wall Street analysts. "While this is not good news, it is clear that TiVo is going in a new direction and focusing on the (retail) business," William Blair analyst David Farina pointed out in a note Tuesday morning, according to TheStreet.com's George Mannes. "Mr. Yudkovitz's departure further increases the company's dependence on the (retail) business, as Mr. Yudkovitz was the company's best hope of finding a cable partner, in our view." Yudkovitz left because he was exhausted and frustrated over Ramsay's interference during his 20-month tenure. In addition, with Ramsay still remaining as company chairman, Yudkovitz's future effectiveness would be limited. The company needed a fresh start at both the CEO and presidential level. Plus, ask yourself: Why would TiVo's board go through the trouble of persuading Ramsay to step aside if the new CEO would simply follow in his path and focus on retail rather than cable and satellite licensing pacts? No, TiVo's new CEO, who has yet to be announced, will try to re-open the cable doors -- and listen to offers to sell the company. It may be too late, but it's the only way that TiVo can survive for the long haul.Phillip Swann, president of TVPredictions.com, has been quoted on TV technology in dozens of publications and by broadcast outlets, such as The Chicago Tribune, The Hollywood Reporter, Fox News and CNN. If you would like to contact Mr. Swann, he can be reached at 703-505-3064 or at Swann@TVPredictions.com.