Tom Rogers - President, Chief Executive Officer
Eric Sheridan - UBS
TiVo, Inc. (TIVO) UBS Global Media and Communications Conference December 9, 2013 1:30 PM ET
Okay. So we are back after lunch. By way of intro again, my name is Eric Sheridan. I’m UBS’ U.S. Internet and Interactive Entertainment Analyst. And it’s our pleasure today to have CEO; Tom Rogers from TiVo back again after being at the conference for a number of years. So we are glad to have Tom back, talk about all things TiVo.
Thank you for having me.
So, Tom maybe to kick it off, you just put up your earnings report just in the last couple of days maybe give us an update on some of the main takeaways from the earnings report. What you are focused on as a company and sort of what the message is coming out of it were?
Well, the main focus coming out of the earnings was record revenues, record gross profits, record EBITDA taking away one time litigation victories and all that coming together with record subs for the quarter as well in terms of the largest sub adds we have had since we started the whole table game up year-over-year almost a million subs. So, on the basic financial metrics it was a very strong quarter.
And I think that what we said the previous quarter and reiterated on this call that we are now after a long period of time where people questioned whether TiVo would be a profitable company. We’ve reached sustained profitability and that we said that we have a foundation to do in excess of $100 million of positive EBITDA next year. So a long way from where the company was only a few years ago where we were looking at almost negative $100 million EBITDA.
Definitely. So recently you launched a new product TiVo Roamio and I just wanted to talk about, so the reception that product has gotten and sort of what you are trying to do with that product it’s different from what you have done before the marketplace and how you see that product evolving?
Well, the reviews on it have been spectacular from all quarters. One of my favorite quote, the Holy Grail of Set-Top Boxes. And it is really the only answer out there in terms of taking traditional television channels, the recorded and live world, the world of over the top content putting it altogether in a single box, with a single remote with a single interface and giving you the multi-screen capability to enjoy what you recorded both in your home and now out of the home, obviously, the name Roamio is a play both, and the fact that its for TV lovers but it allows you to roam anywhere and we have done very strong reviews on the ability to give you that multi-screen where ever you wanted the experience.
I think the way we have described it because there is so many people who still think TiVo is a DVR and have a hard time understanding the evolution of TiVo and the Roamio product has been a key wave for us to begin to educate the marketplace in terms of just how far advanced we have gotten from the core foundation of DVR technology is that it is really a combination in many ways of your Apple TV, your Google TV, your Roku, your Slingbox, your cable box, your DVR all put together in a single easy to use approach that gets you a combination of things that just aren’t available for many one of those individual products.
You touched up on interesting points that there is a lot of sort of evolution going on in the industry right now, lot of players skating after the video opportunity. Maybe take it back up to 30,000 feet, you can help us understand sort of how you think putting out of the evolutionary period we have already seen, how you think that that television and video is going to continue to evolve over the next couple of years.
Well, I think television is going to get more and more like music and by that I mean that the offering available for the consumer will look more and more like music even though I think the business structures of the television world will continue to hold up much better than they did in the music world. The music world was crushed by the onslaught of a digital technology, all the basic elements of the music business broke down yet what has emerged for the consumers is a fantastic experience. You can get just about any piece of content you want, you can get an al carte, you can get it aggregated, you can put it in bundles that are personalized, you can get it to any device that follows you from the cloud with complete connectivity wherever you are.
And that is really a terrific consumer experience, the television world handle the onslaught of digital much better. The incumbent players were not crushed many of the elements of the business world where – have been enhanced by the opportunities that digital has brought about. And with that the consumer ended up with a much less robust experience when it came to video a lot more content options. But how those content options are consumed and the ease with which they are put together to be able to get anything you want wherever you are, when ever you wanted, is a much more complicated thing on the video side of the equation.
We view our role has being the enabler that tries to bring that music experience to the TV world. We happen to bring music in the form of Spotify or Rhapsody or Pandora or other music service through TiVo is one of the comprehensive pieces of our offering. But what we attempt to do is to package that in a way that begins to replicate as much as possible for the consumer the benefits that the consumer gets in the music world today. And I think that desire for the consumer to have that will increase and the issue for the television industry, how response it’s going to be to that proposition.
Sure. In that answer, you sort of touched up on an interesting theme that there is sort of hardware and software components to this evolution. The TV, the device you pick up plus, the underlying software that you interact to consume, you guys are positioned as both you have a hardware offering and a software offering. How do you think about both those pieces, how they work together and how they work separately as the company continues to evolve?
Well, hardware for us has always been a way to deliver the TiVo service, the TiVo experience. It traditionally was something that we have subsidized in order for the people to get that experience and give us recurring subscription revenue piece that go from it as we have upgraded the features and with that the hardware capability. We sell most of our hardware today both direct and retail in a way that as no subsidy or actually positive margin on the hardware side with exception of our most basic SKU at retail.
For the cable operators similarly its been a means for them to access our software and our service where they may not have a better hardware option and in those cases those MSOs that feels that we are their best hardware option, we have been willing to sell them hardware and we have done so with some nice margin that we talked about on our last call. But, over time we are embedding ourselves more and more in third party boxes, the Pace Box in the U.S. increasingly being one of choice for U.S. operators with that less hardware emphasis from us in the MSO part of the world. And relative to the consumer part of the world that it’s direct retail.
It’s a vehicle for us but it is really just the basis upon which we want to drive that service into the home. We have expanded that hardware capability with the TiVo mini and a whole home retail solution which is a great offering for consumers who really want to be able to have a cheaper answer for a multi-room setting than their current cable operator gives them. But, we look at it as we enhance the cable offering where we – the cello tape, the delivery of cable, we enhanced and improved the cable service and ultimately we give people a cheaper way to deal with hardware because even though they are buying it up front they get out from under what can be $35, $40 a month of hardware charges when you are talking about multiple room implementations. And with that you get back that hardware investment that the consumers made pretty quickly.
And in that consumer business when you go direct to consumer with the product offering that’s both hardware and software, let me talk a little bit about retention of subs you have today, so how they continued to target growth in that business going forward and so what initiatives around both of those aspects of the business?
Well, we have not been marketing over most of the preceding quarters terribly heavily in our retail business. The retail business have a lot of benefit to us and it’s a brand innovation that it gives us that we quote over to the cable side. The recognition by cable operators that we are a very much a consumer electronics company and they get the benefits of that innovation that comes from a consumer electronics company which significantly distinguishes us from the vendors that the cable world has generally had which are often viewed as being slow and behind the eight ball and innovating as the cutting edge, the way that consumer electronics company have to.
I would say though that with Roamio and the kind of reviews that we got, we certainly decided to step up some in the fourth quarter. Our marketing expenditures something that we think will drive some improvement relative to past quarters in terms of how Roamio is doing certainly, we saw the beginning of November before we were really kicking in with any marketing that we were seeing retail picking up nicely. And we hope that continues I think the best way to combat churn in our churn has traditionally been pretty well on the retail side when you takeaway the standard definition TiVos that are still up single tuners that are still out there that amazingly some people are still using but obviously churn at a higher rate then new equipment in the home, you get, you take that out of the equation and our churn is, it is quite low. But it is always about continuing to improve the features, continuing to improve the service and give people a sense of TiVo continuing to be the best way to experience television relative to anything that they can get from a service provider. And I think as long as we do that that’s our best tool against churn.
You guys have a whole range of pay-tv operators on the contract now for services and the agreements you have not only in the U.S. but globally. But, I think one thing that seems to come up is, what sort of the range of arrangements are sort of what is that spectrum look like Comcast, DIRECTV, some of the others like Virgin Media and maybe help educate us as to sort of what those range – of arrangements actually are with pay-tv operators between TiVo and them?
Well, DIRECTV and Comcast being Tier-1 U.S. operators have somewhat different types of arrangements with us relative to our traditional MSO relationships. Comcast it’s a quasi-retail relationship where they enable us to get XFINITY and major proprietary investments they have made in content and give us the ability to offer to their subscribers not only that content but Netflix and Amazon and Hulu and the key streaming brands that they aren’t able to offer as part of their own – as of their own package. And that brings with it the unique relationship DIRECTV which doesn’t have broadband capacity and therefore really doesn’t play to the heart of the TiVo proportion of linear and broadband being offered in a single package as kind of a much more basic more traditional TiVo look TO and that brings with it yet a different level of arrangement.
But, our traditional relationship is, its getting paid healthy fees that range $1 to $2 sub per month or above depending on the operator, depending on the volume, depending on the commitments being made. And increasingly a whole home approach meaning it covers the ability of the operator to offer TiVo mini or to a multi-screen or TiVo to (inaudible) and with that we found ways to drive our monthly revenue with operators so that we are essentially looking at the multi-screen world is one that adds support to our overall pricing within the cable community.
And international deals differ somewhat in terms of the rates relative to domestic deals but overall the monthly recurring revenue equation is the one that we seek and the one that we think is a pretty powerful model over time.
Okay. You mentioned international there – there seems to be a lot of runway for you guys internationally to strike additional deals with carriers. Maybe help us understand what you see out there on the landscape internationally outside the United States and sort of what that can mean to TiVo over the next couple of years?
Well, we have had most of the mid sized and smaller operators in the U.S. meaning guys who are not going to do this themselves make the decision that they were going with us. Internationally, most operators still haven’t made those decisions but once that have we have done pretty well in terms of getting their vote of confidence. But there are many more out there to deal with. Some of which like guys in the United States will probably decide that they want to develop their own UI, others who are going to want the full suite that we provide, we’re increasingly finding that they MSO community is recognizing that even if they develop their own UI. That in itself is not an answer for where all this needs to go that increasingly in a cloud based IPTV service where you are looking to dish up personalized recommendations where you are looking to create way of tying together a multi-screens and all the content management aspects and all the recommendation metadata elements that go into that that’s the backbone of the service that supports the UI is just as important if not more important to being able to have a robust offering over time.
And while for whatever reasons and I’m not sure I agree with the reasons that certain operators believe that the UI is both strategic that they need to control themselves or do it themselves. That there are increasingly opportunities for us to exploit where we can still have a relationship or dialog with those operators because of the other elements that we bring to the table that are so significant. Then when you start thinking about not only the aspects I’ve mentioned but how on a network DVR gets tilt into the service and all of the issues related to a content management in a video on demand TV everywhere network DVR world where each content assets has its own rules of the road and when advertising appears, when something is on a subscription or quasi-subscription basis, how often it can be used? How long a recording can stay?
There are massive issues of content management forget about the features and rendering of that to the consumer. But the massive uses of content management for the operator that also have a lot to do with how well the service, the backbone is put together. And so we are finding as all that beings to be better understood and the fact that we now are able to show how we take people through the QAM world to the IPTV world. There are reasons for us to have dialogs in relationships even with those operators internationally – matter domestically who may feel the UI is very strategic and when they need to focus on themselves.
Okay. One deal that seems to have gone very well over the last couple of years is Virgin Media in the U.K. Maybe you can help us understand why that relationship has been so successful what you see in that field that maybe could become part of a broader global TiVo expansion and maybe you can just help to connect a little bit?
Well, that deal was very successful because the cable operator looked at it and said here is the market where they have a great broadband offering, a video offering that has traditional been somewhat challenged and part because other operators in the market have content rights that they didn’t have directly. And they needed to do something to enhance the perception of their video service that would take advantage of their superior broadband capability. And that they decided to market that in a way that got them meaningful distribution. They have been extremely successful as if close to half of the subscribers – Virgin subscribers in the U.K. are now TiVo subscribers.
I was coming through passport control last week on my way to London and some visits over there. And I put down my landing card, corporate executive and the passport control officer said what corporation and I said, TiVo. And oh, TiVo and started giving me a whole rendition of TiVo and its features and what it can do. And I said okay that’s pretty cool. Virgin is doing a good job of getting the word around, the passport control. And I actually related that incident on CNBC Europe last week when I was being interviewed and one of the anchors said to me, did he have an American accent? And I said, gees, that’s pretty snarky, you think your British passport control officers are American? He was very British and varied up the speed on TiVo.
And I think the fact that Liberty Global has come into the hold here has been quite constructive for us. We did not have any relationship or ongoing dialog with Liberty, we now have regular discussion and dialog in technological assessments with them on a broad range of issues where we are constantly comparing those and thinking about further implementations from RDK to other technological planning that goes on and with that we are certainly hopeful that we can develop potential other opportunities with Liberty Global beyond the U.K. market. But, certainly within the U.K. market the relationship has developed quite solidly.
I guess, another aspect of the business that people do talk about a fair bit is targeted advertising, sort of this Holy Grail, some of the digital advertising initiatives, TV has always been something that never seems to kept fully implemented the way people think it could. But, maybe talk about that opportunity you guys have bought of a couple of companies in the area of targeted advertising and what that opportunity might mean to TiVo longer term?
Well, there is a lot of P2s that come within the equation of interactive advertising or targeted advertising. I think it is certainly an area that it’s going to develop far more substantially than it is now. So its more and more viewing goes on demand whether that’s DVR or VoD or streaming. The video advertising on demand market is going to have to develop in a much more significant way than it currently exists. And that’s a meaningful opportunity. There are a number of impediments in terms of how that’s developed, part of it is trying to divorce an advertising insertion capability from the user interface from the user experience.
We do tell interactive advertising related to the DVR when it comes to our own interface and the fact that the advertising inventory in various forms is integrated within our UI makes that a much more holistic sell that an advertiser can get their arms around. So even though it’s a fairly limited number of subscribers in the scheme of 100 million television homes, its when they understand and get can see how it works and that’s one piece of it. Another piece of it is the analytics and can you measure it in a way that in a on demand world you are really giving an advertiser a clear sense of what they are getting for that advertisement.
Again, within our own universe, we have the ability to do that. Well, we recently bought – last year bought has a company that takes second by second set-top box information and marries it with purchase information so that you are getting both the viewing information and the purchase information coming out of the very same household. And so you have a clear sense of what people watch and what they buy as opposed to the way most television advertising is done in the United States today or around the world which is on broad demographic. This is a demographic I want to reach, these are the kind of shows they watch and I’ll advertise in those shows which is a relatively crude way of going at who is actually going to purchase or where are the swing purchasers, where do I have to show up with most move, purchase behavior?
And we have demonstrated to the P&Gs of the world and others most recently a major announcement we made with comScore and P&G on how we do this in a way that drives return on investment for advertisers in a significant way. And that’s increasingly I think going to be an important thrust in how on-demand advertising develops because you got pressure coming from CFOs who are saying to their organization, hey, look, advertising is just – in the broadest views particularly television advertising is just not that measurable, its not that accountable and we need to understand better what we are getting for these expenditures. And you got the Walmarts of the world who are constantly pressuring for more dollars to go into merchandising and all.
So for there to be a better answer, how does broad based advertising develop and survive in that kind of – with those kind of pressures, you need to demonstrate how television advertising could be that much more accountable. That’s a function of the kind of inventory you attached on demand programming, it’s a function of measurement. Both of those things are things we are – we are working on – we try to limit the investment in those areas because you can see all kinds of points of resistance in the marketplace that have burned people considerably who have gotten ahead of themselves and thinking the adoption of those advanced advertising techniques are ready. But it is going to happen, I think we are well-positioned for when it does.
So just a follow-up there, what do you think the most friction lies in the ecosystem, is it with advertisers, is it with the ad agencies, is it with the pay-tv operators, general public over information sort of what do you think of the biggest friction points are?
I think a lot of the video on demand advertising insertion is controlled by cable operators who have many other priorities in the scheme of their world and therefore there just hasn’t been that much focused on the implementation of that in a – across the board way that many can access. And I think there is an awful lot of being wedded to the current system by ad agencies, networks in terms of not wanting to disrupt measurement relative to, how this is going to affect our business maybe its not just a good thing being comfortable with Nielsen data although they know the inadequacies of it because they don’t necessarily going to rock the current system.
And I think most of the push for change or reform or movement for innovation is going to come from the advertisers themselves who, one, need to see an improved return on investment for their marketing dollar and two, are going to increasingly demand ways that they can be attached on demand viewing as on demand viewing increases as a percentage of overall viewing in the market.
Sure. When you were talking about the company, if you look the financials of TiVo, the first thing that jumps out still is the cash balance that fits on your balance sheet. Seems like a tremendous asset, I want to understand how you and the board and the management team all sit down together and think about that cash balance as an asset and sort of think of all the choices about ways in which you can use that cash to create shareholder value?
Well, it is a huge asset. As a kind of levels that we are currently dealing with over $1 billion of cash on the balance sheet that’s always the situation we have had for the last five months or so. So it’s not a situation that lasted for a very long time. But, enough time for us to have a large array of opportunities and possibilities that have been chopped to us or we have been made aware of or are we looking at.
And it’s a complex analysis because the developing video marketplace and what might or might not accelerate your business relative to your own organic development in R&D involves a lot of questions about how a lot of things could play out. And still we have a responsibility before making any significant moves in terms of how we deal with that cash to really undertake a thorough examination of options and possibilities. Obviously, we have been very conservative about M&A other than TRA business talked about really have not engaged in any. And on the other hand though returning significant amounts of money beyond the current buyback that we're involved with that we've announced to shareholders in the form of a buyback before we've really completed that examination is kind of tough because you really don't know what resources you may need for what purpose until you fully assess that situation.
Obviously, we want to push ourselves through that to understand those options and the best uses of cash that would accelerate our growth or would go in the direction of buyback for shareholders; we'd like to get through that sooner rather than later and we're very aggressively examining all that. It's the single biggest use of my time these days is trying to get to the good answer on the allocation of that capital. But until we're in a position to really have a clear view of those options and possibilities until we've wrestled them completely having more clarity on that beyond what we've announced on the buyback is a little tough.
Eric Sheridan - UBS
Okay. Maybe I'll open it up and see if any questions in the room; I've got a few more to go but we want to leave time if people in the room want to ask any questions. Got one over here.
Hey, Tom. It seems like Android is doing pretty well in the TV manufacturers from an operating system and it seems like maybe that's helping to push the notices from the cable operators on how outdated their ecosystem is. Can you maybe give us some color on how you view Android as pushing market forward and maybe as a threat?
Well, I think its fair to say that most in the cable operator world have been pretty resistant to their user experience being controlled by an Apple or a Google that they generally view the possibilities of how the value of a video subscriber could be bled away from over time as one where there got significant antibodies to those companies being smack in the middle of their user experience and, quite frankly, it's been a help and a benefit to us a third party with expertise to enable a great user experience but one that isn’t viewed as scary in that respect.
Having said that, I also think that there's a recognition that that various screens, tablets, smartphones, et cetera have an ongoing role and probably a growing, very much a growing role in the video marketplace and that cable operators benefit by making sure they have a comprehensive multi-screen offering and ease, simplicity, convenience will be recognized by the consumer when all the consumer screens can have a similar user experience across them. And to the extent the cable operator can make sure that the set-top experience, the tablet experience, the smartphone experience, the laptop experience are all consistent that they have a way of being able to hold on to video subscribers as they increasingly look to screens beyond the core television set as a place that they consume video. And in that sense, operating systems that may be ways to consume video even if they aren’t ways to consume video on the main screen are important enablers of a key feature set that the cable operators feel they can benefit from particularly as broadband and linear grow together as part of their overall offering.
So I think there is a balance there. And I think that our role is try to give cable operators a great experience the ability to -- where the user can have whatever means they want to of accessing video do it in a consistently easy way, have the personalization and recommendations and browse and search functions that go to the heart of making it really relevant to a user what they get and when they get it and make sure you operate in an Android world, make sure you operate in an iOS world and the fact that you do when you brought those worlds into your own doesn’t mean that you have to have one of those companies at the center of your set top box enablement.
Eric Sheridan - UBS
One over here.
Thank you. In terms of this complex analysis with regard to the war chest and the balance sheet, is there anything that you can categorically rule out at this point with any scenarios? Second, what are the market launches that are currently under way that have the most head room? And given the fact that Com Hem is so nascent at this point maybe you might have an additional update to give to us for the quarter?
On your first question, I would say there rarely a week goes by that some investment firm or banker does not come in and say they have a phenomenal answer be it a venture company or a more mature one to TiVo's strategic growth and think its the greatest possible solution and we ought to turn all of our resources to turning it inside out immediately. And yes, we have rejected a number of those. I don't want to talk about what we've rejected and what we're still looking at but there are a number of things that we've ruled out as just not good uses of our money relative to our own ability to be able to tackle these issues and challenges.
On the subscriber front, when we look at our current footprint of taking out the tier 1 operators that we have kind of different relationships with but our core operators that are rolling us out, they cover about 10 million homes. We're about 25% penetrated of those 10 million homes. I think fair to say we believe we can double or triple that penetration just within that existing footprint, obviously a foot print as the cable industry worldwide makes these decisions, a footprint that we think will grow significantly. Even within the Tier 2 operator community I think our deals cover about 50% of the subs out there within the -- and so, in other words, there are opportunities in the Tier 2 world itself here that are yet to be unfolded.
Com Hem had its earnings last week and made some pronouncements that things are going well. I can't get ahead of their own desire to make their announcements on sub rollouts as they have them, so I'm not going to do that but we're quite pleased as to where they are.
Another way to come out at from asset allocation issue, Tom, is what is sort of top R&D initiatives inside the company? So, if we take a look at sort of your own roadmap for software hardware sort of one of the things that consumed the most amount of your time as to where to decide to allocate capital internally?
One is clearly personalization. In a world of increasing choices some might argue growth to infinite choice, how do you get down to what truly matters to the individual users based on their personal history, based on what they may indicate is the -- or the professional reviewers or critics they follow based on their social network and their friends and family recommendations based on what's buzzy and popular that we know that they care about, how do you bring those multiple sources of data together into a dashboard of immediate relevance anytime somebody turns on the television set because so much of the issue for people is there is so much more there at any given time that they are able to assess and know and figure out. And the more you can be to predict or based on all those variables and their personal history with respect to them of what they want to see at any given time -- speed to content, ease of access to content, that's what seems to be most valued in the viewer community as choices multiply. And so that's a major issue for us.
Another one is clearly NVVR. The whole issue for many cable operators, won't say the whole issue but an issue that has developed that's equally important to them as improving the viewing experience has been how do they reduce the cost of CapEx. Traditionally, in the cable industry technological advance meant more and more CapEx, and many believe that they're at a point now that they can actually find a way to advance the offering technologically while reducing CapEx. That, of course, means less heavy set tops in the home, lighter clients. And a key element of that is building the DVR into the cloud. And its not really an issue of storage, its not hard to -- there's a lot of storage in the cloud and you can tie recording capability into that.
The issue is really the management, they have content management issues associated with that for the operators so you can really have a consumer seamless experience that relates to a number of things including the personalization I just mentioned.
Third area clearly, major trend is mobile applications, including just the kind of stuff they were known for now with Roamio being able to access your recordings wherever you are. Well, that requires Wi-Fi today but to be able to do that over a cellular connection would be a huge improvement for an awful lot of people who want to be able to do that when they don’t have Wi-Fi access. And a number of others things that relate to improving that mobile experience, when you think today that video is probably one half of all broadband traffic and probably in the next five years we will go to two-thirds, there is a huge desire to be able to make sure wherever you are, you can consume what you want to consume and you have these issues of personalization and recommendation and ease of access that we are nailing for the set-top that have to be equally applied to the mobile world as well.
Sure. We have got time for one more, I will open it up and see if anyone on the floor has got one more?
Could you just talk about either cable or satellite companies here and abroad and who seems most aggressive at really improving the consumer interface with not using your product but you seem them and you just don’t get as much penetration against this operator versus that operator and any changes going on there that its just tougher, who is the tougher to compete against and what do you do when you look at kind of make -- this company and this marketplace it is just harder to get through? Do you say, well, there is better fields to go to or do you put more resources into it, or what?
Well, there are handful of companies that are big enough to be able to take on the UI issue, the user experience issue themselves. Comcast has been very aggressive, I think the X1 is a big advance relative to where cable has been over the years here which is largely been a grid guide that’s fairly outmoded and X1 is a long way from that. It’s fair to say it’s not what we are yet where we have the Comcast (inaudible) offering in their major markets, which enables the TiVo experience with XFINITY and all their on-demand content and then Netflix and Hulu and other things along with it.
We actually find that we do better in [Com Hem] markets with our retail products and then another market. So I wouldn’t necessarily say that though we’re an operator spending more time improving their user experience is necessarily a bad thing for us. I think what it does is, put a much broader marketing effort on the importance of UI, the importance of access the content all the features that come along with it and with that we enter the consideration set for a lot more people who aren’t otherwise thinking about those issues and so we have seen in those Comcast market improvement relative to how we index generally with respect to our retail product.
I think satellite generally has a much tougher time in this developing marketplace than cable because so much of the significant benefits that are going to come in advance television world are the additions of broadband content that cable operators broadband pipe can uniquely bring to the equation and put the – if the cable operator can put together in an integrated way and that’s a much more challenging situation for most satellite operators in terms of the ability to do that where we are always seeing over the top content generally being the thing that’s marked competitive moves in market, the more over the top content there is, the more likely you have multiple players buying for some kind of experience or interface to deal with it.
And again, where we think this is going because it’s natural and it’s kind of where the music world got at this. I don’t think the existence of broadband only devices that’s simply enable broadband content or a streaming service to your television set, it doesn’t integrate linear TV or recorded TV or video-on-demand along with your broadband streaming services.
I just don’t think that’s the long-term play for this. I think the consumer is going to demand, I get everything, I get it integrated, I’ve got search across everything I don’t have to know where something is coming from a streaming service or video-on-demand or linear channel. I have the ability to understand and discover that regardless of how the content is coming to me and that’s the unique proposition that we bring to the table that I think will be the model for all this develops going forward.
Great. I want to thank Tom for being here today at conference. Thanks Tom.
Thank you. Thanks very much.
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