Newsweek, citing an anonymous source close to the talks, said the deal could be approved by TiVo's board of directors this week. Representatives of TiVo and Netflix could not immediately be reached for comment.
Such a service would require subscriptions to both Netflix and TiVo, as well as a broadband Internet connection. TiVo's current service allows the recording of broadcast TV programs, while Netflix delivers its DVDs through the mail.
TiVo has said it was working on delivering unique content, such as independent films, over the Internet to subscriber set-top boxes. In January, TiVo acquired Strangeberry, a California company that designs broadband television software.
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