Rovi Corp, a provider of digital television guides, said on Friday it would buy video recorder pioneer TiVo Inc in a $1.1 billion deal that brings together two video software players with deep patent portfolios.
I could never figure out why TiVo, a company that everyone seems to love, could never do better in the market.
Because of the subscription. That’s my theory.
Will be interesting to see how this impacts Virgin Media in the UK – they use the Tivo as part of their package. You cannot buy Tivo standalone in the UK – not since Virgin became partners anyway.
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For those who don’t remember, Rovi used to be called… Macrovision. Their primary business isn’t “digital television guides”, it is copy protection. In short, this is the purchase of a disruptor (Tivo) by a company with a big investment in maintaining the status quo.
I have to think the subscriptions are both overpriced and confusing.
I don’t believe that there’s a billion dollars in business for Rovi here.