BWS Financial Comments on Winners & Losers from Supreme Court's Cablevision (CVC) Decision

June 29, 2009 3:39 PM EDT

BWS Financial comments on winners and losers after the US Supreme Court has decided not to hear the argument involving Cablevision (NYSE: CVC) and cable networks. The decision paves the way for cable companies to offer DVR services to their subscribers at a low cost to the operator and the consumer.

The firm said the decision is a positive for Knology (Nasdaq: KNOL) and Rentrak (Nasdaq: RENT) and a negative for Entropic Comm. (Nasdaq: ENTR).

On Entropic, the firm said, "The concern is now that there is the option of a virtual DVR there would be no reason for consumers to opt to share content over DVR boxes. They can simply pull it down from the server."

On Knology, the firm said "Knology (KNOL) is a cable company who would benefit from lower capital expenditure costs. KNOL would be able to offer the service and still collect a fee."

On Rentrak, the firm said, "Rentrak (RENT) tracks content for cable companies and networks. The decision would expand the market for RENT to include advertisers and could likely lead to more data to track."

The firm said it is too early to suggest if the decision would be positive or negative for DG FastChannel (Nasdaq: DGIT).

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