Rovi Corp. Feb 12
- ID: 2048544
- February 2012
- Standard & Poors
High barriers to entry from a large patent portfolio; Very strong market position in niche markets; and Good EBITDA margin. Some technology risk; Product lifecycle exposure; and Relatively high debt leverage. The rating on Santa Clara, Calif.-based Rovi Corp. reflects Standard & Poor's Ratings Services' expectation that the company's good operating performance will continue as new product rollouts offset a decline in legacy analog products. Rovi Entertainment Store, formerly RoxioNow, has the potential to open up another significant revenue stream for the company, but it will indirectly compete against several sizable firms, including Netflix Inc., Amazon.com, and Apple Inc.'s iTunes. We consider Rovi's business risk profile as "fair" (as predefined in our criteria), based primarily on its good EBITDA margin...
Companies mentioned in this report are: Rovi Corp.
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