Rovi Corporation (ROVI) Shares Soar On Licensing Deal

Focused on revolutionizing the digital home entertainment landscape, Rovi Corporation (Nasdaq:ROVI) today announced that it has signed a multi-year licensing agreement for DivX® technology with Shenzhen MTC Co., Ltd. (MTC), a China-based manufacturer of consumer electronics products. The new agreement will help MTC expand its implementation of DivX Plus HD, the premium level of Certification, and use it across its product lines, including digital set-top boxes, DVD and blu-ray disc players, and digital TVs.  It will also enable the MTC decives to take full advantage of a gamut of internet videos and Hollywood entertainment available across the globe in DivX formats.

Ken Chow, General Manager of MTC, signifies that the addition of the DivX technology as a step of increasing the value that they add to their consumers. He further elaborates that joining hands with Rovi is an effort on part of MTC to create a better entertainment experience for the consumer, providing them the opportunity to enjoy their library of video content on all of MTC devices. Similar thoughts were shared by Matt Milne, Senior Vice President of CE sales, Rovi when he puts “MTC’s use of DivX technology across product lines allows them to provide customers a very flexible and convenient way to enjoy high quality premium entertainment”

The devices that have been licensed for the DivX Plus HD profile can easily play back DivX .AVI and DivX Plus .MKV files up to 1080p as well as protected Hollywood entertainment in the DivX and DivX Plus HD format for an optical disc, USB drive, or streamed wirelessly between devices in a home network using DLNA. These devices also include digital rights management technology to facilitate the secure playback of premium content in the DivX format. Global online retailers offering titles in the DivX format include Film Fresh, the WB Shop, and Media Market.

Shares of ROVI soared 3% to $46.97 on Wednesday.


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