Morningstar Rating

Stock Research and Analysis

by Andrew Lange

Bulls Say

Roughly 90% of Rovi's revenue is recurring, with a significant portion governed by long-term contracts. The company is also often able to push through price increases upon contract renewal.
Rovi's advertising network could be a meaningful growth driver.
The firm has an ingrained position in the entertainment industry, serving high-profile entertainment companies, consumer electronics manufacturers, service providers, and retailers. Read more 

Bears Say

The company can no longer rely on the revenue contribution from the analog content protection business. The decline was far more sudden than expected and highlights the unpredictable nature of technology.
The downside of being a patent protectionist is that Rovi's efforts to defend its intellectual property may conflict directly with potential customers.
In hindsight, capital allocation toward projects such as RES and DivX have proved unjustified. Read more 

Management

Tom Carson, who joined Rovi in 2008 through the Gemstar-TV Guide acquisition, was named CEO in December 2011. We believe Carson is an appropriate successor to Alfred Amoroso, given his digital and entertainment background at Gemstar-TV Guide. Peter   Read more 

Profile

Rovi, formerly known as Macrovision, is a digital entertainment company that provides media guides, entertainment metadata, cloud services, video streaming, digital copy   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

Facebook Still Overvalued Despite Remarkable Results  
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.