Telecom will have exclusive rights to sell the Tivo digital television set-top box in New Zealand when it goes on sale in November.
The Tivo device will act as a Freeview decoder, allowing people with analogue televisions to watch free-to-air high-definition television, as well as allowing them to download pay-per-view movies and other entertainment services over the Internet.
Hybrid TV, the license holder of all Tivo products in New Zealand and Australia, says Telecom was chosen because it has the largest market share in New Zealand.
Unlike Sky TV, which currently has more than 50% of the pay TV market, there's no monthly subscription with Tivo. However, the initial price of the box will be about $900.
Craigs Investment analyst Mark Lister says Tivo could pose a long-term threat to Sky's market share, but this depends on the content it offers.
Tivo is keeping its content deals under wraps for now.