The story broke last week that Rovi will acquire Sonic Solutions for more than $700 million. And you are probably saying, “Who cares?”
It helps to know who these two companies are. Rovi used to be called Macrovision, and they are responsible for the copy protection schemes that prevent you from copying (or at least make it more difficult to copy) published DVDs. They also provide on-screen program guides. Their customer list includes cable and satellite TV services.
Sonic Solutions is probably best known for its Roxi0 brand of software for CD and DVD burning on computers. The company also provides a range of other services, including its RoxioNow service that is used by clients including Best Buy and Blockbuster for their streaming video content rental and sales systems.
It makes good sense for Rovi to grow its product portfolio by acquiring Sonic Solutions. This creates a synergy that helps strengthen the company’s relations with major content producers and retailers, both for traditional DVD products as well as new online streaming services. In this fast-moving market, it would appear that Rovi continues to be agile and responsive. You still may not recognize the company’s name, but the chances are increased that it will touch on your choices for home entertainment content.