• by Wayne Friedman , July 9, 2009

Building on an earlier deal, electronics retailer Best Buy has struck a broader partnership with digital video recorder company TiVo.

Part of the new agreement will have the two companies developing a new cable set-top box, sold in Best Buy stores, that allows the retailer to deliver its own advertising message to TiVo subscribers. Previously, both agreed to a distribution deal where the retailer would sell TiVo DVRs.

As part of this new agreement, Best Buy has agreed to heavily market the sale of TiVo machines in its 1,100 stores in the U.S.

Best Buy will also look to finance efforts to bring TiVo's highly touted software onto its own line of products, under its Insignia brand line of TV and electronics.

According to reports, TiVo will also make Best Buy's Napster audio service available to TiVo subscribers. Last fall, Best Buy acquired the music subscription service Napster for $121 million.

Chris Homeister, senior vice president of entertainment at Best Buy, said in a press release: "Best Buy and TiVo together will open up a variety of new ways for consumers to get the most out of their entertainment experience, have more digital content choices, and get on-demand access to Best Buy's trusted perspective in consumer electronics."

Owners of broadband-connected TiVos can also view YouTube, download movies from Amazon.com and stream movies from Netflix.