At first blush, this may not seem like much of a growth story/ Fiscal first-quarter sales (ended June) grew just 4% from a year ago, as results were dampened by a declining legacy business that had been tracking DVD sales. It's the new media consumption measurement biz--known as Advanced Media & Information -- that is the real growth story: This division saw sales rise 31% in the quarter, and based on recent new customer wins, should keep growing at a similar rate in coming quarters.
For folks at Nielsen, Rentrak has become a rival to watch.
RoviRovi (ROVI) might be seen as an industry loser in the changing media landscape -- its shares have tumbled from nearly $70 in early 2011 to a recent $14.50. Rovi was a leading player in DVD software, yet as more content is enjoyed online and not on discs, this company has lost some relevance. Yet Rovi has another division that holds a great deal of promise -- and could fuel a sold rebound for this stock. Note that television set makers are looking to roll out a new generation of consoles that allow consumers to view all of their content on TV -- no more switching to your laptop when it comes time to search for Youtube videos, Hulu TV shows and other content. A number of these TV set makers are looking at using Rovi's online programming software. You may be familiar with this software when it powered the popular TV Guide channel of listings. Rovi has struggled to keep that business relevant, but the new world of internet-enabled TV sets might just give it newfound relevance. Shares don't look challenging, trading at less than eight times projected 2013 EPS of around $1.90. Tivo Digital video recorders have become the must-have entertainment device for many couch potatoes. But as it often happens in the land of high-tech, the company that comes up with a great idea isn't always the one to ultimately get rich from it, making TiVo (TIVO) something of an afterthought for investors.
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