Apple One Step Closer to HDTV via Rovi Licensing Deal

Rovi Corp. announced in a filing with the SEC that it had signed a multi-year deal with Apple, giving it access to undisclosed portions of its TV-related IPs.

Under the terms of the agreement, Apple will license intellectual property from Rovi. The specific terms of the license agreement are confidential, according to Fortune.

Formerly known as Macrovision, Rovi participates in Digital home entertainment, Media guides, Interactive program guides, Metadata, Content networking technology, Content protection (RipGuard and Analog Copy Protection)

The company is known to be licensing its interactive program guide to third parties, allowing users to "facilitate navigation of digital entertainment media."

Rovi’s TotalGuide allows users to access "simple, centralized and intuitive access to multiple content types: broadcast, premium, Internet-based and personal," in addition to offering TV listings with imagery, enhanced data, and extended multimedia.

Soon after the news became public, Piper Jaffray analyst Gene Munster reaffirmed his stance concerning Apple’s potential plans to take over the living room in the next 2 to 4 years with a full-fledged Apple television.

“Earlier today (9/20), Rovi, owners of television guidance technology Interactive Program Guide (IPG), announced a licensing deal covering Guide technology for Apple’s services (e.g. iTunes) and devices (e.g. Apple TV, iPad),” Munster wrote in a note issued to clients on Monday.

“We believe this announcement is further evidence that Apple is developing live TV and DVR features for its Apple TV product, and will likely launch an all-in-one Apple Television in the next 2-4 years,” Munster said.

“Following its deal with Rovi, Apple would be clear to add live TV, DVR, and guidance features to its Apple TV product, which we believe is a critical step towards an all-in-one Apple Television,” the analyst added.

Munster and his company “see the new Apple TV, announced on 9/1, as a meaningful change in Apple’s efforts in the digital living room.”

The analyst speaks on behalf of Piper Jaffray, saying “We expect the addition of new content, such as Netflix, in combination with the $99 price (down from $229), will drive higher unit volumes compared to the previous version of Apple TV.”

According to their estimates, Apple has sold roughly 400 thousand units of its hobby per year. This number is expected to increase to about 1.5m Apple TVs in fiscal 2011, Munster wrote.

“We see the Apple TV as an important step toward an all-in-one Apple television. We continue to expect Apple to launch an all-in-one Apple television in CY12,” Munster outlined.

“As consumers gain comfort with connected TVs and apps on their TVs, we believe Apple will eventually take its all-in-one philosophy to the digital living room like it has with the iMac and the iTunes ecosystem,” the researcher concluded.