Why not watermark everything?

For a fee, TiVo Series 2 owners will soon be able to export recorded content to anything that can understand the MPEG-4 format, notably the iPod and the Sony PSP.

Since TiVo does not have license to the DRM used by either Sony or Apple, there had to be some other means of discouraging (because you can't ever hope to eliminate it) unauthorized copies of Survivor: Guatemala and Monday Night Football: Green Bay at Baltimore from making the rounds on the usual P2P networks. Enter the watermark; the networks should have been happy. Except it didn't really work out that way.