This is not the first deal TiVo has made with a major European cable operator; the service has so far launched in the UK with Virgin Media and in Spain with Ono. Virgin Media reported 677,100 TiVo subscribers at the end of Q1 2012, which was close to 18 per cent of its subscriber base - an impressive uptake considering the full launch of TiVo was only a year earlier. TiVo also appears to be getting a positive reception in Spain, where it just received a major software upgrade.

In the wider European perspective, the Swedish TiVo launch further illustrates the strategic focus on core TV services that larger cable operators with broadband offers are pursuing. TiVO provides a gateway to digital content on multiple platforms in a centralised place which the consumer has control over. This is a significant opportunity for these operators since it allows them to take advantage of changing patterns in TV viewing behaviour and provides another way to up-sell to digital subscribers to maximise the ARPU.  It also doubles as a defensive move should the threat of web-based OTT ('over-the-top') TV services prove credible and allows cable to remain competitive against IPTV. The move towards cable operators taking advantage of set-tops integrating TV in its web-based form as well as its traditional form is becoming an important trend this year. Cable giant Liberty Global is making the next known move, with the Horizon box due to begin its roll-out across Europe later this year, starting with the Netherlands in the thrid quarter 2012.

Com Hem is the largest pay TV operator in Sweden, with a total subscriber base of 1.74m if collective household agreements are included. At the end of the first quarter 2012, 851,800 subscribers were direct customers.