Amazon hasn't decided yet whether to release the DVR.
Amazon didn't immediately respond to a request for comment.
Amazon is working on a new DVR device for the streaming era that that would be a household's hub for the company's online video.
TiVo's stock was down as much as 10% in midday trading on Friday, but it closed down only slightly. This device was rumored to have the ability to record live programming from television channels, store said content, and stream said content to smartphones, tablets, PCs, and televisions. Rumors suggest that the DVR is now being developed at Amazon's Lab 126 R&D center, and we'll probably see a whole lot more, soon. Amazon's potential entry into new markets often has a significant effect on the share performance of affected companies. The company already sells Fire TV streamers, the new Fire TV Cube and TVs from Toshiba that have the Fire TV interface built in.
Amazon also plans to update its Fire TV stick - a smaller version of the Fire TV box - with newer software, the person added. The device purportedly works around cable providers and will challenge TiVo.