Digeo to sell DVRs directly to consumers

By Jessica Mintz

updated 7:34 p.m. ET Jan. 8, 2007

NEW YORK - In a shift in direction, Digeo Inc. announced Monday it will begin selling digital video recorders directly to consumers.

Until now, the startup backed by Microsoft Corp. co-founder Paul Allen supplied its Moxi set-top box technology to a handful of cable TV providers. Beginning in the second half of the year, consumers will be able to buy the Moxi boxes.

Digeo showed off two of its new high-definition digital media recorders at the International Consumer Electronics Show in Las Vegas. Digeo's boxes will provide basic DVR functions as well as allow users to stream HD content from the PC to the TV.

For those who want to watch recorded programs on a second television, the company will sell a smaller and less-expensive box that can receive video streams in HD.

Slide show CES 2007 Behind the scenes at the Consumer Electronics Show in Las Vegas. more photos

Pricing was not disclosed. The Kirkland, Wash.-based company said it also plans to license Moxi technology to other consumer electronics manufacturers.

Changes to rules governing the cable industry are making it possible for Digeo and other companies to go straight to the consumer without requiring them to use a separate box to descramble the cable signal.

Starting in July, the Federal Communications Commission will require cable operators to let subscribers buy their own third-party boxes and connect them to cable using a device called a CableCARD.

Digeo has existing relationships with Time Warner Cable Inc. and Charter Communications Inc., another Allen venture. Prices for its current service vary by cable provider.

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