Sky Television says it is almost viable to introduce broadband download capabilities for its MySky HDi device.
Sky chief executive John Fellet said that the internet protocol capabilities, allowing broadband downloads of programming, would be economically viable once they were in 150,000 homes.
The move would allow Sky - whose MySky HDi dominates the personal video recorder market - to catch rival TiVo in the technology race.
Fellet acknowledged that TiVo, launched in New Zealand a month ago, had more technological features than MySky.
MySky is part of the pay platform and Sky says it is in more than 130,000 homes.
TiVo, as well as accessing the Freeview digital free to air channels, allows broadband downloads of specified free and pay-per-view content.
With convergence between the home computer and television set - and new advanced electronic programming guides - many believe it is the future for entertainment and communications.
Industry observers like Michael Carney of the consultancy The Media Counsel said that 24-hour access to specified video content was the way of the future, rather than the current model broadcasts of pay channels.
"So TiVo will be the gatekeepers for content and it is important to maintain access to them."
Fellet said that opening the door to broadband downloads through MySky HDi internet portal would require deals for unmetered broadband, so Sky customers downloading material were not charged for going over caps imposed by their ISPs.
Telecom has an arrangement with TiVo offering unmetered broadband downloads.
MySky has met a consumer demand for the personal video recorder function - easy pre-recording of content and fast forwarding through advertising breaks.
But the personal video recorder market has become crowded.
There are many brands of PVRs to accommodate the new Freeview free to air channels.
But TiVo takes the notion of a PVR further - with options for free and advertiser-funded programmes and a growing supply of pay-per-view movies and shows.
TiVo technology is licensed in Australasia to Hybrid Television Services - one-third owned by TVNZ and two-thirds by the Australian Seven Network. Technology writer Peter Griffin has praised the features and attractions of TiVo especially for the "semi-geek" consumer interested in technology.
But MySky HDi was still well ahead in the amount of content where currently TiVo had limited offerings.
Hybrid Television Services Sydney-based chief executive Robbee Minicola said similar comments had been made about TiVo and Foxtel.
"Comparisons between TiVo and pay television on content are becoming tiring," she said.
"I am not in any way concerned about the content portfolio in New Zealand."
TiVo would ramp up the amount of content and ultimately offer much more free and pay-per-view content in return for a $920 initial purchase.
Sky looks to broadband downloads for MySky
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