Tag - Tivo

TiVo Inc. (Nasdaq: TIVO) shares are rising after the maker of digital video recorders announced after Wednesday’s close that it signed a deal with media agency Carat to provide second-by-second ratings data. Also before the opening, J.P. Morgan upgraded TiVo to “overweight” from “underweight.” TiVo has a 70% chance of winning its patent case versus EchoStar Communications (Nasdaq: DISH) over digital video recording functionality, the investment bank said.

“TiVo data adds a critical element to understanding what is really going on in DVR homes.  Having recently integrated our traditional and digital marketing capabilities, we were impressed with the depth and breadth of TiVo’s audience research services,” Carat CEO Sarah Fay said in a statement. “This model for aggregating television audience viewing patterns complemented our vision for the future of marketing communications.”

On Wednesday, TiVo reported that it is partnering with software company Nero AG to bring TiVo’s video service to personal computers.

“The partnership with TiVo extends the TV experience for the connected digital home, enabling easy access anytime, anywhere to the most extensive TV content,” Nero CEO Richard Lesser said in a statement. “Our core technology enables the creation of new categories in consumer electronics, changing the way that users interact with both hardware and software. Our proven technology adds media functionality to the world’s leading consumer electronics, personal computing and software products.”

On Tuesday, TiVo signed a deal with NBC Universal Inc. to provide ratings data.

TiVo Inc. (Nasdaq: TIVO), a maker of digital video recorders, said in a regulatory filing after Tuesday’s close that it seeks to raise up to $100 million through a sale of securities.

Alviso, Calif.-based TiVo said in a registration statement with the Securities and Exchange Commission that the firm would use proceeds from the sale for research, development, working capital, sales and marketing, paying down debt, capital expenditures and general corporate purposes.

In morning trading, TIVO shares are down 0.49%, or $0.03, at $6.06. Over the last 52 weeks, shares have range from $5.05 to $7.89.

A recent study by The Carmel Group predicts a dramatic surge in the installed base of digital video recorders (DVRs) and a five-fold increase in related revenues from hardware, software and service fees to $5.5 billion over the next few years.

DVRs are becoming increasingly popular with consumers since they offer a way to effectively sort through the rising volume of broadcast, cable and broadband video and fast forward through commercials. The Carmel Group study predicts that roughly one-third of all 108 million U.S. households with televisions will have DVRs by year-end 2008. DVRs are joining cell phones, flat screen TVs and digital music players among the list of “must have” consumer electronics. The Carmel study also predicts that by 2010 there will be as many as 1.5 million users of portable digital video recorders.

Satellite television broadcasters are helping to drive increased DVR market share. They offer DVRs as a competitive tool for differentiating their services. As a result, the percentage of satellite television subscribers using DVRs is forecast to increase to roughly 50% by 2010, from 28% currently. Cable service providers are also aggressively marketing DVR technology. As a result, the percentage of DVR users among cable-television households is forecast to rise to about 50% by 2010, from approximately 10% today.

Two small caps that will benefit from these trends are Tivo Inc. (Nasdaq: TIVO) and Spanish Broadcasting System, Inc. (Nasdaq: SBSA).