TiVo demonstrated Thursday at CES 2005 a high-definition cable ready DVR that will soon allow customers to use the TiVo service without a set-top box. The new service will be delivered over the Internet, the company said, and embraces the CableCARD initiative, which allows televisions to link to digital cable systems without the use of an external box.

"By eliminating the need for a separate set top box, consumers will enjoy more choice and flexibility over their entertainment delivery," said Mike Ramsay, chairman and chief executive officer, TiVo.

The move comes as the company is under increasing fire from investors over stagnant subscriber growth for its flagship standalone receiver. Much of TiVo's recent success can be attributed to its partnership with DirecTV, not the service itself, analysts say.

Through the new service, users will be able to record video from standard and high-definition cable channels, as well as video content available on the Internet. This announcement builds on top of the Monday release of TiVoToGo, which allows users to make their recorded content portable.

TiVo hopes that the added features will lure new subscribers to try out the service. Part of a new strategy, code named "Tahiti", the plan focuses on bringing online and traditional video content together for users, as well as giving users options on where they can view their recorded material.

Tivo told reporters that a cable-ready, high-definition DVR with CableCARD built in, which will also include a cable tuner, is expected to reach the market in early 2006.