TiVo 2015 Annual Report Download - page 6

Table of Contents
CE manufacturer to monetize and profit from the ongoing distribution or maintenance of entertainment content over the life of a device.
As traditional media changes, the opportunities for advertisers evolve as well. Currently advertisers spend more on television commercials than on
internet advertising; however, the gap is narrowing as spending on internet advertising increases faster than spending on television commercials. As
television viewership has become more fragmented, advertisers are looking for new ways to reach audiences by managing consumer engagement across the
many devices and applications consumers use. Additionally, the growth of internet advertising has fundamentally changed the criteria advertisers use to
evaluate advertising campaigns, adding metrics such as completion and guaranteed views. Consumption data, audience measurement and other analytics
data and services that bridge a consumer's engagement across many devices and entertainment services are emerging as key capabilities required to enable
advertising value across both pay TV and internet advertising.
Strategy
The landscape is changing as content distribution continues to move from the traditional model of a service provider delivering content over their
proprietary network to a single class of device (a set
- top box or television), to a multi - device and multi - provider ecosystem where content is delivered over
both proprietary managed networks and unmanaged internet delivery to many types of devices. Through this transition, the technologies used to distribute
video to consumers are transitioning from the traditional broadcast technologies to internet
- based delivery and increasingly relies on internet technologies
throughout the value chain. Our strategy is to develop, market and sell technologies, IP, products and services focused on two key areas: Entertainment
Discovery and Audience Monetization.
Entertainment Discovery. Finding content remains an important part of the entertainment experience. We believe new discovery experiences
integrating advanced personalization, specific to a person or device which integrates live, recorded and online video, utilizing multiple screens, social
engagement and new forms of interaction such as voice, will continue to be an area of opportunity. We also believe that metadata, which contains detailed
information about programming, data on consumer ’ s entertainment interests and media engagement history, along with predictive analytics to interpret and
utilize the data will be important in enabling highly personalized content discovery experiences.
Audience Monetization. Shifts in the value chain are creating new ways for consumers to gain access to content and new business models are
emerging to capture consumer
’ s entertainment engagement and resulting spending. Monetizing audiences through content and media experiences across
television and internet services accessed through different devices such as connected TVs, tablets, smartphones, personal computers, media streaming
devices and game consoles, has become a critical challenge for the industry. We are focused on delivering solutions that utilize consumer media
engagement data and advanced predictive analytics to help service providers, programmers and advertisers to better understand consumer behavior and
better target and measure audiences.
Build On Key Customer Relationships. We intend to grow our business by expanding on the technologies that we provide existing customers and
creating new customer product and licensing relationships as more companies look to add media entertainment to their digital lifestyle solutions. We
continue to accelerate our customers' efforts to address the industry's expanding needs for entertainment discovery and audience monetization. We have
established relationships with customers in various industry and marketplace segments, including:
Introduce New Products, Services and Technologies. We are developing additional technologies and solutions to meet the evolving needs of our
extensive customer base. We have committed significant resources to expand our technology base, to enhance our existing products and to introduce
additional products. We intend to improve technologies in our current fields of operation, as well as pursue emerging opportunities where we are
positioned to drive growth in the business.
Expand and Protect Patent Position. We have built, and continue to add to, a large intellectual property patent portfolio. The licensing of our
portfolio is a significant part of our business. We believe that our future success partly depends on our ability to continue to introduce proprietary
solutions for IPGs, connected devices, data and analytics. We have patented functionality for many aspects of these solutions in the areas of content
discovery, DVR, VOD, OTT, multi - screen, personalization, contextual search and recommendation and other interactive applications and advertising. Our
portfolio of
4
•
Service Providers such as the cable, telecommunications and satellite television system and internet delivered television programming
providers.
•
CE Manufacturers of digital televisions, Blu - ray and standard DVD players, CD and DVD drives, PVRs, game consoles, mobile devices,
media streaming devices, digital set - top boxes and other connected media devices.
•
Webscale Companies including search engines, social networks, media service and online retailers.
•
Content Owners and Advertisers including media networks, studios, agencies and large brand advertisers.