America Online is keeping up with Microsoft by inking its own interactive TV deal. AOL is partnering with digital recording and customized television vendor Tivo to create a full-featured interactive television service. AOL is investing as much as $20 million in Tivo as part of a three year deal the will put Tivo's technology for America Online's interactive television venture. Slated to roll out this summer, AOL TV boasts a feature set very similar to Microsoft's Ultimate TV; internet access, email, and digital recording. AOL's system will be available as a standalone set-top box or in a bundle with Direct TV.
