CES Takeaways Positive for Rovi (ROVI) and Netflix (NFLX)
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Rating Summary:
57 Buy, 26 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 24
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Commenting on last week's Consumer Electronics Show (CES), analysts at Goldman Sachs noted their was a lot of excitement around "SmartTVs," a positive for NetFlix (Nasdaq: NFLX) and Rovi Corporation (Nasdaq: ROVI).
The firm noted that ROVI said that only a minority of SmartTV's are actually connected to the Internet, but this is expected to increase through an education process - much like HD TVs.
While mass adoption may not occur for several years, the firm noted that Netflix was prominently displayed on almost every SmartTV that they saw.
As more SmartTVs are sold, the need for search and guidance will increase, benefiting Rovi, the firm notes.
Also with 80 new tablets introduced at CES this year, Netflix represents a “killer app" for tablets. "We believe that the growing tablet market should drive strong subscribergrowth for Netflix in 2011," the firm said.
Despite positive comments, Goldman rates both Netflix and Rovi at Neutral.
The firm noted that ROVI said that only a minority of SmartTV's are actually connected to the Internet, but this is expected to increase through an education process - much like HD TVs.
While mass adoption may not occur for several years, the firm noted that Netflix was prominently displayed on almost every SmartTV that they saw.
As more SmartTVs are sold, the need for search and guidance will increase, benefiting Rovi, the firm notes.
Also with 80 new tablets introduced at CES this year, Netflix represents a “killer app" for tablets. "We believe that the growing tablet market should drive strong subscribergrowth for Netflix in 2011," the firm said.
Despite positive comments, Goldman rates both Netflix and Rovi at Neutral.
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