I like this idea a lot… this could be a solid driver for new subscriptions for both services and lets TiVO compete outside the existing VOD services currently offered on Cable and Satellite. The main difference will most likely be depth of catalog, but it really seems like only a matter of time until Cable MSOs offer a deeper selection. At the moment, my currrent VOD offers from Time Warner is very similar to what you would find at Blockbuster on a given week.
As has been commented as well at the PVRblog, consumers are going to have to accept a reduced quality and a potential delay in delivery.
Tomorrow’s Newsweek carries a story about a new Netflix/TiVo partnership that sounds perfect for anyone that has a subscription to both TiVo and Netflix. [PVRblog]
Subscribers who belong to both services will be able to download their Netflix DVDs over the Internet directly into the TiVo boxes in their homes, instead of receiving them in the mail.