Question from Rovi's recent Analyst & Investor Meeting and DEMO at CES:
Unidentified Analyst: "As you look at divesting the entertainment store assets, do you anticipate keeping the IP associated with it, or woould that go along with the sale?"
Peter Halt, CFO "The Rovi Entertainmant Store...and the Sonic base came over with no IP."
Later in the meeting another unidentified analyst asked for some color on DivX...CEO Tom Carson responded and after a long drawn out answer he summed it up this way...
"Where success comes long term is really tied to content services that are streaming and/or side loaded that consumers want. We've been alligned with the Rovi Entertainment Store and expect that to continue in a customer supplier relationship obviously as the Rovi Entertainment Store moves."
If Rovi sells the Entertainmant Store to Amazon, Verizon/Redbox or some other big playert, that bodes well for Divx. There are any number of buyers, but Rovi stated that the interest in the entertainmnet store exceeded their expectations...
Jim Goss - Barrington Research
Okay, and lastly, once RES is sold will you still have different elements of involvement in the Ultraviolet Initiative, say as sort of the technology behind Flixter or that sort of thing?
For (inaudible) in terms of our involvement with the Ultraviolet Initiative, one of the things we’ve pointed out on this call is DivX Plus Streaming. Our streaming solution has been certified by the Ultraviolet Initiative as being one of their endorsed DRMs. So we do have involvement through DivX and DivX Plus Streaming but we are out of the storefront business in terms of with our Rovi Entertainment Store.