TiVo 2015 Annual Report Download - page 10

Table of Contents
Optimizer can work with programmatic advertising scheduling and management systems and is managed through a browser
- based dashboard.
Rovi Promotion Optimizer, based on the same platform and predictive analytics capabilities as the Ad Optimizer, provides television networks with
advanced campaign management and media planning functionality for building and executing audience
- based media plans. By having the capability to use
past viewing data from multiple sources, Promotion Optimizer enables television networks to create plans for on - air promotions that are targeted to data
driven audience segments.
We also offer applications that provide insight into the habits and preferences of end users, so service providers can advance operational
efficiency, improve the customer experience, drive profitability, support carriage and bundling decisions, and help mitigate churn. Using a data warehouse
designed to handle TV viewership data, reference data and clickstream events, the analytics engine is able to process raw data from millions of set - top
boxes, panels and third - party sources, as well as program, billing and customer relationship data to further support business goals. Our Operator Insights
application enables service providers to unlock the value of their return
- path data. A simple, actionable business intelligence application, Operator Insights
transforms raw data into meaningful and useful viewership and usage data that can be explored and analyzed to support marketing, programming and
operational initiatives. Our Subscriber Analytics application helps service providers attract and retain customers by identifying which ones are likely to add
products and services or churn based on viewing behaviors and subscription information. It uses viewer data and billing records to model and evaluate
potential subscriber behaviors, which can help identify cross
- selling and up - selling opportunities and focus marketing efforts.
Rovi Advertising Service
In addition to selling advertising on Rovi - provided IPGs, we also work with some service providers to sell or help them advertising on guides that
they have developed which may include packaging their subscriber footprint inventory into the overall inventory that we offer advertisers. Historically, we
have primarily sold broadcasters, or their agencies, the opportunity to promote their products via advertisements inserted in IPGs. We offer packages to
advertisers to provide them nationwide or targeted advertising on a guide for a period of time. Advertisers place ads through a variety of display formats
incorporated into the guide screens. Depending on the IPG deployed, advertisements can display additional text information or video when clicked on via a
remote control. Advertisers can target specific audiences by airing advertising at certain times of the day or in specific geographies. We believe
conventional advertisers are increasingly aware of the value proposition for advertisements inserted in IPGs and across our overall advertising footprint.
Analog Content Protection ("ACP")
Our analog video content security, commercially known as ACP, has been used to protect billions of videocassettes since 1985 and billions of
DVDs since 1997. We license ACP directly to CE manufacturers and content production studios, as well as semiconductor companies that supply the CE
manufacturers.
Content production studios typically generate significant revenue from the sales of packaged media, primarily DVDs. Any household that owns a
DVD - R, personal video recorder ("PVR"), personal computer or a media center is capable of making unauthorized, high - quality digital and analog copies of
content unless that content is properly protected against unauthorized duplication. Our ACP technologies allow consumers to view programming stored on
prerecorded videocassettes and DVDs or transmitted as digital PPV or VOD programs via cable or satellite, but deter unauthorized consumer copying of
such programming with recording devices. The Motion Picture Association of America and independent studios can use our video content security
technology to protect movie releases on videocassette or DVD. For the protection to work, ACP must be present on both the media (physical or digital) and
the hardware device.
DVD player manufacturers often license our ACP technology for an up - front fee and annual license fee. Digital set - top box and DVR manufacturers
typically license our video content security solutions for an up - front fee and a per - unit royalty. Content production studios generally pay us an annual
license fee to use our ACP technology. We have entered into agreements with the majority of the large CE and set - top box manufacturers in which they pay
a one - time fee for a perpetual license to our technology.
Our ACP customers include ARRIS (including Pace plc), Cisco, Fujitsu Limited, Mitsubishi Electronics, Panasonic, Pioneer Electronics, Samsung,
Sharp, Sony, Toshiba, Paramount Home Entertainment and others.
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