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TiVo Inc (TIVO) Enters into Licensing Agreement with Roku
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Digital home entertainment services and solutions provider, TiVo Inc. , recently entered into a licensing and multi-year intellectual property agreement with Roku, Inc. However, the financial terms of the deal were not disclosed.
Per the deal, Roku now has a license to TiVo and Rovi Corporation patent portfolios for over-the-top (OTT) offerings. Additionally, the contract entitles customers of Roku to directly access TiVo’s high-quality entertainment metadata and other products to carry on search and navigating user interface.
California-based Roku is a privately held consumer electronics company, primarily dealing in consumer digital media products. Its digital media receivers allow customers to stream video or audio via Internet on televisions. It offers both fee-based and free services to its customers.
According to Samir Armaly, executive vice president of TiVo, “This license agreement with Roku underscores the importance of TiVo’s comprehensive patent portfolios for the fast-growing streaming entertainment industry.”
We believe that an agreement through this licensing deal would be incrementally beneficial for the company. Additionally, the deal would provide the necessary competitive edge.
Going forward, TiVo’s strategy of including Roku makes its service more ambitious. It is expected that this inclusion will bring more users to TiVo and drive the sales of TiVo’s other digital goods. Therefore, the deal could help the company gain larger market share.
Bottom Line
We believe that recent deals with leading companies coupled with new customer wins, product launches and international expansion will drive top-line growth.
It should be noted that TiVo was formerly known as Rovi Corporation. Upon successfully completing the acquisition of TiVo Inc. early this September, Rovi adopted the iconic TiVo brand name.
The new TiVo Corporation is now the global leader in entertainment technology and audience insights. The company has a diverse product portfolio ranging from interactive program guide to DVR. The combined company has emerged as the world’s leading media and entertainment provider.
Nonetheless, the actual synergies from the merger will take some time to reflect in the company’s performance and a lot depends on how successfully it integrates the legacy business of TiVo.
The company faces significant competition from Alphabet Inc.’s (GOOGL - Free Report) Google TV, Roku and Apple Inc.’s (AAPL - Free Report) TV.
Shares of TiVo underperformed the Zacks Internet Services industry over the last six months. TiVo's shares registered a negative return of 5.96% compared with the industry’s 1.02% gain.
Micron has a long-term expected EPS growth rate of 10%.
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TiVo Inc (TIVO) Enters into Licensing Agreement with Roku
Digital home entertainment services and solutions provider, TiVo Inc. , recently entered into a licensing and multi-year intellectual property agreement with Roku, Inc. However, the financial terms of the deal were not disclosed.
Per the deal, Roku now has a license to TiVo and Rovi Corporation patent portfolios for over-the-top (OTT) offerings. Additionally, the contract entitles customers of Roku to directly access TiVo’s high-quality entertainment metadata and other products to carry on search and navigating user interface.
California-based Roku is a privately held consumer electronics company, primarily dealing in consumer digital media products. Its digital media receivers allow customers to stream video or audio via Internet on televisions. It offers both fee-based and free services to its customers.
According to Samir Armaly, executive vice president of TiVo, “This license agreement with Roku underscores the importance of TiVo’s comprehensive patent portfolios for the fast-growing streaming entertainment industry.”
We believe that an agreement through this licensing deal would be incrementally beneficial for the company. Additionally, the deal would provide the necessary competitive edge.
Going forward, TiVo’s strategy of including Roku makes its service more ambitious. It is expected that this inclusion will bring more users to TiVo and drive the sales of TiVo’s other digital goods. Therefore, the deal could help the company gain larger market share.
Bottom Line
We believe that recent deals with leading companies coupled with new customer wins, product launches and international expansion will drive top-line growth.
It should be noted that TiVo was formerly known as Rovi Corporation. Upon successfully completing the acquisition of TiVo Inc. early this September, Rovi adopted the iconic TiVo brand name.
The new TiVo Corporation is now the global leader in entertainment technology and audience insights. The company has a diverse product portfolio ranging from interactive program guide to DVR. The combined company has emerged as the world’s leading media and entertainment provider.
Nonetheless, the actual synergies from the merger will take some time to reflect in the company’s performance and a lot depends on how successfully it integrates the legacy business of TiVo.
The company faces significant competition from Alphabet Inc.’s (GOOGL - Free Report) Google TV, Roku and Apple Inc.’s (AAPL - Free Report) TV.
Shares of TiVo underperformed the Zacks Internet Services industry over the last six months. TiVo's shares registered a negative return of 5.96% compared with the industry’s 1.02% gain.
Currently, TiVo carries a Zacks Rank #5 (Strong Sell). A better-ranked stock in the technology industry is Micron Technology, Inc. (MU - Free Report) , sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron has a long-term expected EPS growth rate of 10%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>