TiVo Rides High On Back-to-Back Deals With Minerva And Izzi
Zacks Investment Research | Jan 09, 2019 09:08PM ET
TiVo Corporation (NASDAQ:TIVO) recently announced at the CES 2019 that it has signed a new metadata deal with Minerva Networks, wherein it will provide the metadata for Minerva YourTV Now, globally. Additionally, a multi-year intellectual property (IP) license renewal agreement has been signed between the companies.
The new global metadata deal will enable Minerva to eliminate dependence on multiple metadata vendors and consolidate its metadata across its Minerva 10 platform. Minerva will be able to quickly access trending content and market the right content and enhance search results, among others, by using TiVo’s metadata platform.
Further, TiVo also announced a multi-year license deal with Mexican cable operator izzi Telecom for metadata for izzi Telecom video service, which will include a wider deployment of TiVo’s Passport Guide for set-top boxes. This will enhance viewing experience of subscribers, who will be able to find and watch TV content more easily.
What it Holds for Tivo
TiVo’s revenues from the Licensing, services and software division dropped 14.5% year over year in the last reported quarter. IP Licensing revenues declined approximately 25.7% due to soft revenues from out-of-license settlements. Under the IP Licensing segment, revenues of the U.S. Pay TV Providers declined 30%.
These apart, low revenues from the Legacy TiVo Time Warp IP deals led to a decline in the company’s third-quarter revenues.
The company is therefore banking on new agreements to turn around its fortunes. Continued license agreements and renewals bode well for it.
In September last year, TiVo announced a multi-year license with Optiva Media to provide entertainment metadata, including TV schedules to the latter.
Further, in November, TiVo announced the renewal of Foxtel's license to its Search and Recommendation Services. This was followed by its multi-year patent license agreement in December with Samsung (KS:005930) for the use of Rovi’s video discovery patents and technologies across Samsung’s smartphone and tablet devices.
We believe that such licensing agreements would be incrementally beneficial for the company. Additionally, the deals would provide the necessary competitive edge over its peers in the emerging market of online video streaming.
TiVo Corporation Revenue (TTM)
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.