Rovi in Data Licensing Deal with TiVo

--Reports Higher Q2 Revenues and Lower Losses

Rovi (formerly Macrovision--for more on the company's name change and the repositioning it heralds, see the interview with Rovi chief evangelist, Richard Bullwinkle, that was published on, July 16th) announced Thursday that it has signed a multi-year global agreement with TiVo which it says will allow the latter to incorporate Rovi TV, movies and music data into its DVR's and into its technology and service solutions targeted at cable, satellite and broadcasting companies.

Rovi claims to offer descriptive, image-rich entertainment metadata that includes program and movie descriptions, rich media content, celebrity biographies, synopses, original editorial content, cast and credits information, album reviews and artist photos, as well as extensive relational links designed to help viewers find content of interest to them. The company says that the deal with TiVo, gives the DVR provider a unique catalog of entertainment metadata on over a million TV series episodes broadcast since 1954; on over 400,000 movies; and on over 1.5 million pop and classical music albums and 13 million tracks. "It is important for TiVo to be able to provide our subscribers and technology distributors worldwide a broad range of data and we are pleased that Rovi's data solutions give us the ability to provide even more movies, music, and TV show information to them," Joshua Danovitz, GM and VP of international at TiVo, said in a prepared statement. Added Frank Johnson, Rovi's VP of global data solutions sales: "The digital entertainment transformation means that consumers today have a nearly infinite amount of digital content to navigate. Our data solutions provide consumers with deep and comprehensive information on a myriad of genres to help them find and discover vast entertainment possibilities."

Rovi also released its second-quarter financial results last week. According to the company, on a GAAP basis:

  • Revenues totaled $119.5 million, compared to $73.1 million for the year-ago quarter.
  • Net losses totaled $2.1 million, compared to $10.8 million for the year-ago quarter. The company said that the Q2, 2009 figure included $20.4 million of intangible asset amortization and $45.6 million of restructuring and impairment charges related primarily to the write-down of various acquired brand names, including brand names from Gemstar-TV Guide (the dominant US EPG developer that was acquired by the then-Macrovision in 2008, in a deal valued at $2.8 billion), which will now be replaced by the Rovi brand.
  • Diluted earnings per share were a loss of $0.02, compared to a loss per share of $0.13 for the year-ago quarter.

However, Rovi said that because its management "believes that including Gemstar's operating results only for the period since its acquisition on May 2, 2008 diminishes the comparative value of results from the prior year," it decided to also release results "on a non-GAAP adjusted pro forma basis, assuming the Gemstar acquisition was consummated on January 1, 2007." These adjusted pro forma results exclude the company's software and games businesses, which were sold on April 1st, 2008; its eMeta business, which was sold on November 14th, 2008; the TV Guide Magazine business, which was sold on December 1st, 2008; the TVG Network business, which was sold on January 27th, 2009; and the TV Guide Network and TV Guide Online businesses, which were sold on February 28, 2009. On an adjusted pro forma basis:

  • Revenues totaled $119.5 million, compared to $101.7 million for the year-ago quarter
  • Earnings per share were $0.38, compared to $0.14 for the year-ago quarter.
  • The company also provided some guidance:
  • It is raising and narrowing its previously issued revenue estimates for 2009 from a range of between $450 and $480 million, to a range of between $465 and $485 million.
  • It is raising and narrowing its adjusted pro forma earnings-per-share estimates for 2009 from a range of between $1.25 and $1.45, to a range of between $1.40 and $1.50.

"Q2 was an outstanding quarter across all elements of our business notwithstanding the economy," Rovi president and CEO, Fred Amoroso, said in a prepared statement included in the company's earnings release. "We grew adjusted pro forma revenues 18% year-over-year in the second quarter, driven by growth in CE licensing, increases in the number of digital television subscribers, new licensees and increased data penetration. I'm encouraged by the continued execution of our business plan, as demonstrated by key wins across the business, including recent international service provider agreements, key wins for our emerging CE solutions, and growth in the data licensing space."

North America