Tivo and Netflix Plan Internet Video Service

Tivo and Netflix plan to launch a video-on-demand service next year that will deliver movies to consumers through the Internet.

According to news reports, Netflix, which delivers rental digital videodiscs (DVDs) by mail to subscribers who order online, will arrange distribution deals with studios. Digital video recorder pioneer Tivo is now working on systems to securely feed movies from the Web to its boxes, which store programming on a hard drive.