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Rovi Reveals Findings from Smart TV Ad Study

Rovi Corporation and Decipher announced the results of a two-phase study that investigated Smart TV usage and interactive advertising in the United Kingdom.

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Unedited press release follows:

Rovi and Decipher Reveal UK Smart TV Ad Study Findings
Research Shows Consumers’ Engagement with Connected Device Platform

Santa Clara, Calif. – 12/6/2011 – Rovi Corporation (NASDAQ: ROVI) and Decipher, one of the United Kingdom’s leading media strategy and research companies, today released the first results from a two-phase study about Smart TV usage and interactive advertising in the United Kingdom. The first phase examined connected device familiarity and usage, creating a profile of the connected TV audience and comparing it to the average UK household. The second part of the study will assess the effectiveness of a range of specific interactive campaigns on the platform and is expected to be completed in the first quarter of 2012.

Decipher conducted the Smart TV research among more than 500 households that are part of the Rovi UK Smart TV Field Trial Advertising program. The UK study is tailored to the region’s unique needs and ecosystem, yet it also is a key component of Rovi’s broader international research into Smart TV usage. Rovi is running Smart TV Field Trial Advertising programs in Canada and Germany as well, and has already conducted similar research in the U.S. Rovi recently released the Phase One and Phase Two results of the U.S. Smart TV field study, which showed that 80 percent of respondents noticed the presence of ads on the connected TV platform, and approximately a third of those who noticed an ad also clicked on it.

“The study, combined with the broader Rovi Smart TV Field Trial, is an opportunity for participating brands to explore emerging connected platforms and to evaluate ad effectiveness on the medium,” said Jeff Siegel, senior vice president of worldwide advertising at Rovi Corporation. “We believe the initial data demonstrates the potential of this platform as a new media channel, which consumers are adopting more quickly than many had anticipated.”

The UK Field Trial includes Samsung Smart TVs and Blu-ray players with the “Smart Hub” content portal, available now in the UK and other countries in Europe. Twentieth Century Fox and Channel 4, along with OMD, the media agency for Channel 4, were the first companies to join the Rovi Smart TV Field Trial in the United Kingdom.

Phase One of U.K. Field Trial Results for Connected Platform Usage:

• 84% of study respondents are connecting their Samsung Smart TV and Blu-ray players and are regularly using the Samsung “Smart Hub” content portal to access IP-delivered content via applications such as BBC iPlayer and LOVEFiLM.

• 85% of those planning to buy a HDTV or Blu-Ray player are more interested in the device because of the Smart Hub feature.

• Usage of Smart Hub stimulates TV viewing, as 49% claim it makes them “watch more TV.”

• The primary reasons given for using the Smart Hub are the convenience of doing multiple tasks on a single screen and accessing on-demand content.

• 58% of study respondents use fewer devices to access the Internet because they can now access applications on their TV.

Phase One of U.K. Field Trial Results for Connected Device User Profile:

• Owners of connected Samsung TV/Blu-ray players are primarily young, affluent males.

• Connected TV users are super-consumers of media content and own a lot of gadgets (7x more likely to own a tablet than the national average).

• 63% of respondents are Sky Subscribers.

• Device users like advertising that helps them learn about new products and services available.

• Connected users who claim to “always” use the Smart Hub are young, busy professionals. The majority of them have Pay TV, and 1 in 4 have superfast broadband of at least 50 MB or more.

• They are heavy media consumers of both linear and on-demand content via the Smart Hub.

“We are pleased to participate in this pioneering study,” said Nigel Walley, chief executive of Decipher. “These studies will help dispel the misconception that people are not yet connecting or using the connected functionality of their Smart TVs and other devices.”

Together, Rovi’s advertising services, products and technologies currently reach more than 40 million households globally. Rovi Advertising Network targets advertisers, agencies and brand marketers, providing highly measurable and interactive TV advertising options designed to reach an engaged consumer audience that is actively seeking live, recorded, on demand, cable or network programming. The Rovi Advertising Network enables advertisers to make a consolidated media buy across multiple interactive TV platforms, including Internet-connected devices — set-top boxes (STBs), TVs and Blu-ray® Disc players, media players, game consoles and other OTT (over the top) devices — and leading service providers.

About Rovi Corporation
Rovi Corporation is focused on revolutionizing the digital entertainment landscape by delivering solutions that enable consumers to intuitively connect to new entertainment from many sources and locations. The company also provides extensive entertainment discovery solutions for television, movies, music and photos to its customers in the consumer electronics, cable and satellite, entertainment and online distribution markets. These solutions, complemented by industry leading entertainment data, create the connections between people and technology, and enable them to discover and manage entertainment in an enjoyable form.

Rovi holds over 5,100 issued or pending patents worldwide and is headquartered in Santa Clara, California, with numerous offices across the United States and around the world including Japan, Hong Kong, Luxembourg, and the United Kingdom. More information about Rovi can be found at