) has recently entered into a partnership with Flingo, a provider
of Smart TV applications and TV platform technologies. The
partnership will help TiVo to gain access to several TV
applications and video contents.
By integrating Flingo applications into TiVo set-top boxes,
TiVo will now be able to stream video content from TMZ, A&E,
History, Showtime, TV Guide and other content providers. In
addition, some exclusive contents will be made available to TiVo
customers. The applications and contents are expected to enhance
TV viewership for TiVo customers.
TiVo has been focusing on partnerships and strategic alliances
to drive subscriber growth. TiVo has a number of partnerships
with major companies including
), Charter Communications, RCN, and Suddenlink. TiVo also
expanded its services globally through partnerships with ONO,
Virgin Media Inc.
) and Canal Digital (in Scandinavia).
We believe that TiVo will continue to pursue opportunities for
developing strategic partnerships with cable operators both in
the domestic as well as international markets in order to boost
its subscriber base going forward. We believe that these
partnerships will also help in reducing competition over the long
Although the legal settlements with EchoStar, AT&T,
) did away with a major overhang on the stock, we believe that
TiVo needs to focus on increasing its subscriber base by
expanding its product portfolio going forward.
However, pending patent litigation issues, rising R&D
costs, and higher hardware and sales & marketing costs are
expected to impact TiVo's profitability in the short term.
Increasing competition from cable and satellite providers could
also hurt profitability over the long term.
Currently, TiVo has a Zacks Rank #3 (Hold).
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