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, metadata, and analytics 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
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
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
Rovi, formerly known as Macrovision, is a digital entertainment company that provides intellectual property, media guides, entertainment metadata, cloud services, and advertising. Read more
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