Naveen Chopra, the former TiVo exec who led the company through its merger with Rovi, has been appointed chief financial officer of online video service and discovery service Pandora.

Chopra, who takes on his new role Tuesday (Feb. 28), heads up Pandora’s Pandora’s finance, corporate development and strategy, investor relations, facilities and CIO functions, and reports to company founder and CEO Tim Westergren.

Chopra succeeds Mike Herring, who was Pandora’s CFO since March 2013, and assumed the role of president in March 2016, where he will continue to focus on growing Pandora’s ad and subscription businesses. 

Notably, Pandora is integrated with several set-top platforms, including Comcast X1 boxes, certain Dish Network and DirecTV Receivers, Verizon Fios boxes, and TiVo-powered devices.

Chopra most recently served as interim CEO of  TiVo and as the company’s CFO and SVP of corporate development and strategy. TiVo was acquired by Rovi last September, with the combined company carrying the TiVo name forward. Chopra, who joined TiVo in 2003, stayed on temporarily as an advisor after the Rovi acquisition closed.

RELATED: TiVo Names Naveen Chopra Interim CEO

“After a thorough and thoughtful search process, we are thrilled to welcome Naveen aboard,” Westergren said, in a statement.  “Naveen is a talented business leader whose deep knowledge and background in consumer-oriented technology companies make him the right choice as our new CFO.”

“Pandora fundamentally changed the way we listen to music and continues to lead the way in reshaping the future of music for listeners, music makers and advertisers,” added Chopra. “It’s an exciting time to join the team and a unique opportunity to combine my passion for world-class consumer services and strategic and operational experience to help guide Pandora’s growth and deliver shareholder value. I look forward to working closely with Tim, Mike and the entire Pandora team.”

Chopra holds bachelor degrees in computer science and economics from Stanford University and an MBA from the Stanford Graduate School of Business. He currently serves as a member of the board of directors of Vonage Holdings Corp.

Virgin Media, the U.K.’s largest cable operator, has launched an update for its TiVo-powered platform that enhances a customer’s ability to search for and save TV shows and movies.

Among the additions is Series Link+, which lets customers assemble TV shows they like in one place, including shows from live TV, available on VOD, or from OTT services like Netflix and BBC iPlayer.

The update also adds a “smart” search for VOD and catch-up services that requires only the first letter of a show title and the system auto-fills the rest, and some visual enhancements, such as image-based tiles for VOD titles and a shift from channel numbers to channel logos. The upgrade also adds a bookmarking feature for TV, VOD and Netflix content that’s placed in a “My Show” folder.

“This update gives our box an even more intuitive intelligence while, crucially, retaining many of the familiar features  we know our customers love,” David Bouchier, chief entertainment officer at Virgin Media, said in a statement.

The MSO noted that the update comes ahead of the coming launch of a new 4K-capable, TiVo-powered box called the V6. Virgin Media hasn’t announced a launch date for the V6, but offered a sneak peek at it earlier this week.

In Q2, Virgin Media added 66,000 TiVo subs, getting it past the 3 million sub mark, or about 82% of its U.K. video base.

TiVo is merging with Rovi in a $1.1 billion deal announced in late April. 

Cubiware, the TiVo-owned middleware provider, said it will further its expansion into Asia via a new partnership with MStar Semiconductor.

Under the deal, Taiwan-based MStar will integrate Cubiware’s CubiTV Hybrid Middleware with its HD MPEG-4/MPEG-HEVC hybrid chipset platform. The combo, which will implement “TiVo Lite” onto MStar chipsets, will be pitched to set-top makers targeting the pay TV and over-the-top service provider markets.

TiVo acquired Poland-based Cubiware last year, adding a maker of middleware for cable, satellite and IPTV operators that gave TiVo a way to pursue international markets using a product set that can deliver a TiVo experience on boxes that require less horsepower than the traditional TiVo platform.

TiVo, which is in the process of being acquired by Rovi for $1.1 billion, announced a similar Cubiware partnership with Ali Corp.,  another Taiwan-based set-top silicon supplier, earlier this year.

“MStar's capabilities fully complement Cubiware's IPTV and VOD functions. This will make for an enhanced and exciting offering for our customers and partners,” Jakub Gorski, co-founder of Cubiware, said in a statement. 

Rovi issued a statement Monday to clarify that no decision has been made to exit the consumer hardware business as it moves ahead with its $1.1 billion acquisition of TiVo.

The possibility that Rovi might not pursue that path and instead rely solely on third-party partners was raised last week, when company CFO Peter Halt said at an investor conference that "[b]eing in the hardware business isn't something that necessarily excites us.”

He later noted that there are several other box providers that do have direct-to-retail businesses.

“We'll be looking at the possibilities of working with them, having them control the box. And while that would be a partnership and we wouldn't get all the sales as a result, we think that's probably a better way to approach the consumer space."

Rovi, which did stop selling the Fan TV box soon after acquiring Fanhattan for $12 million , stressed that no final decisions have been made with respect to TiVo’s current hardware business.

“As we move toward bringing Rovi and TiVo together, we continue to evaluate multiple paths to put the award-winning TiVo consumer experience in the hands of users around the world,” Rovi said.

“Recent reports indicated a possible intent to exit portions of the consumer business following the completion of the acquisition,” the company continued. “There has not been any decision to exit the consumer hardware business.  One of the options to accelerate our consumer business growth includes continued collaboration with third-party hardware partners, just as Rovi has done for decades and TiVo has done more recently with MSOs. Our exploration of options to bring the TiVo experience to consumers in new and different ways should not be construed as a lack of passion or commitment to this important aspect of our business.

“The TiVo brand, award-winning user interface and design-centered development approach are all a direct result of a relentless focus on the consumer experience. This consumer-experience focus will continue post-acquisition and remains one of the core reasons for Rovi’s acquisition of TiVo.”

Rovi has already indicated that retail will remain an important channel once it consummates the TiVo deal.

TiVo’s days as a maker of hardware products for retail sale and for distribution through MVPD partners could be nearing the end.

"Being in the hardware business isn't something that necessarily excites us," Peter Halt, CFO of Rovi, which is acquiring TiVo for $1.1 billion (and adopting the TiVo brand), said Thursday at the Cowen and Company Annual Technology, Media and Telecom Conference, according to this transcript of the discussion (via ZatzNotFunny).

"There are several box providers out there who have direct-to-retail,” Halt said. “We'll be looking at the possibilities of working with them, having them control the box. And while that would be a partnership and we wouldn't get all the sales as a result, we think that's probably a better way to approach the consumer space."

That Rovi has little interest in being in the hardware business is not anything new. It quickly gave the Fan TV box the heave-ho soon after acquiring Fanhattan for $12 million and instead pursued a plan to integrate Fan TV navigation and discovery software into its other products.

Halt expanded on that decision, noting that Rovi figured it would have to remain “box-agnostic” so it could sell the software to other device makers.

Halt was also clear that Rovi would not be looking to exit the consumer space.

That echoes what was said soon after Rovi and TiVo announced the deal.

“We view this [retail] as a very important channel to be able to maintain focus on,” John Burke, EVP and COO of Rovi, said at the time.  Burke also stressed that TiVo’s experience in the direct-to-consumer side has also helped the company build better products for its MVPD partners.

And TiVo has already begun to distance itself from the business of making hardware as it pushed ahead with a restructuring that placed a bigger focus on MVPD partnerships and more efficient spending on the retail end.  It has also talked about putting resources into products “that go beyond the traditional DVR.” But that was also said before the Rovi deal was announced.

Plus, TiVo’s already been more than eager to port its platform to third-party hardware. Severalset-top makers, including Arris/Pace, Evolution Digital, Technicolor and Kaon, have signed on to use TiVo’s Hardware Porting Kit. It’s also working with box partners on “operator-optimized” products that support 4K and High Dynamic Range.

And TiVo’s reduced reliance on a hardware business has shown up in the numbers. In Q1, TiVo posted total revenues of $107.3 million, down from $114.7 in the year ago quarter, as hardware revenues fell to $7.5 million from $22.3 million.

TiVo announced last month that it had about 7 million subs ahead of Q1 earnings, and followed through Tuesday with word that it ended the period with 7.1 million, with 6.1  million coming way of deals with cable operators and other MVPD partners.  

TiVo, which is in the process of being acquired by Rovi for $1.1 billion, said MSO subs rose 28% in Q1. Overall, the company added 315,000 subs in Q1 – 312,000 via MSOs alongside 3,000 TiVo-owned net adds. That result helped TiVo’s retail base to inch up to 974,000, an 18% reduction in total acquisition spend compared to the year-earlier period.  TiVo said its retail product churn was 1.3%, the lowest quarterly result in that category in seven years.

TiVo pulled in service and software and technology revenues of $99.7 million in Q1, up 8%, along with net income of $4.2 million, narrowed from $9.1 million in the year-ago quarter. The Q1 2016 result includes $5.2 million in Rovi transaction costs and $3.7 million in restructuring expenses that were partially offset by a $3.2 million tax benefit from those items.  Operator-related service and software revenue rose 44%.

TiVo posted total Q1 revenue of $107.3 million, down from $114.7 in the year ago quarter, as hardware revenues dropped to $7.5 million from $22.3 million. Shares were down 15 cents ( 1.51%) to $9.80 in after-hours trading Tuesday.

"We are very pleased with our solid execution this quarter which continues to position us for a successful combination with Rovi,” Naveen Chopra, TiVo’s interim CEO, said in a statement. “Rapid change in the video landscape continues to underscore the value of companies that can bring simple, distinctive, and comprehensive navigation to an increasingly fragmented world of video content and consumption”

TiVo said the Rovi merger is moving forward as planned. The deal, announced on April 29, is expected to close in Q3 2016.

TiVo ended the quarter with cash and cash equivalents of $503 million.

For its fiscal 2017, TiVo affirmed that it expects service and software and technology revenue of $400 million to $420 million, with net income of $40 million to $50 million.

Boston -- TiVo has entered the 4K game with the Bolt, a connected DVR focused on retail, but it’s also hard at work with set-top partners on  “operator-optimized” products that also support 4K as well as High Dynamic Range, which supports brighter, more colorful video images.

“We are big believers of it, the value proposition” of HDR, Thomas Elam, vice president and general manager of TiVo’s North American service provider business, said here.

And differing from the strategy with Bolt, which will also support HDR when TiVo flips on that capability, TiVo won’t make the MSO-optimized hardware, but will rely instead on set-top makers that have signed on to use its Hardware Porting Kit, a group that includes Arris/Pace, Evolution Digital, Technicolor and Kaon, among others. TiVo, as a reminder, is in the process of merging with Rovi.

Here at the show, Comcast continued to amplify its interest in HDR, showing off a new Xi5 device that will support the format and start shipping in July and complement the Xi6, which will support both HDR and 4K.

The proposed $1.1 billion merger of Rovi and TiVo has caused some analysts and observers to see it as a major patent play that will give the combined company more opportunities to drive revenues from lawsuits.

Though a combined company would create a company with a significant patent portfolio focused on video, it’s incorrect to interpret the deal as a “patent play,” Naveen Chopra, TiVo’s interim CEO, SVO and SVP of corporate development and strategy, said Wednesday at the Jefferies 2016 Technology Conference.

The deal, he said, “was not premised on a patent strategy,” but one that is really about creating a bigger products company, a bigger operating company, with more diversity of revenue, more diversity of customers, more diversity of products.”

Though patent fees create upside, “it’s really not the main story here,” he said. “Perhaps the best indication of that is the fact that the company going forward is going to be called TiVo which is something you do if you want to maintain the TiVo product, the TiVo brand, the TiVo interface, and those are really the things that will be driving a lot of the growth going forward.”

Earlier in the discussion, Chopra noted that TiVo’s business has also evolved in recent years, away from hardware to more toward software and services.

TiVo’s business, he said, “has evolved substantially over the last seven or eight years to be at a point where frankly, the hardware is a minor component of the business today.”

And when TiVo enters discussions with MSOs, “they’re not coming to TiVo talk to talk about DVR;  they’re not coming to TiVo to talk about a box. They are coming to TiVo to say, look we need to take our video product to the next step, we need to make it more current, we need to embrace OTT and that’s where our software and our services come into play.”

That said, TiVo’s retail/consumer business remains “highly strategic for us,” as it continues to drive the company’s product roadmap.

TiVo confirmed that it has moved ahead with a pricing adjustment on the Bolt, the 4K-capable, broadband-connected DVR that TiVo introduced last fall.

As spotted by ZatzNotFunny over the weekend, TiVo, starting today (May 2), has cut $100 off the base price of the Bolt and dropped the year of service that was baked into the price when the product was launched last year. 

Under the new pricing, the Bolt with 500 gigabytes of storage sells for $199.99 (versus the original $299.99, while the 1 terabyte version now fetches $299.99, down from $399.99.

New pricing is being updated on the TiVo site as well as through other sales channels throughout the day, said TiVo, which last week inked a $1.1 billion deal to be acquired by Rovi.

TiVo noted that it evolves pricing options as it receives customer input and to meet customer demands. Of recent note, TiVo launched a new version of the Roamio OTA that features more storage and also eliminates the monthly subscription fee.

Tech blogger Dave Zatz, meanwhile, sees the pricing change as a way for TiVo to reduce potential customer churn after the first year following the purchase, though the price will actually be higher for the product if monthly an annual pricing remains $14.99 per month or $149.99 per year. (Multichannel News will update the story once service pricing for the TiVo Bolt is confirmed).

TiVo recently announced that its subscriber base had passed the 7 million mark. The company ended its fiscal Q4 with 6.8 million subs – 5.47 million via MSO partnerships and 971,000 that are retail/“TiVo-owned.”

Rovi and TiVo expect to wrap up their proposed $1.1 billion merger in the third quarter of this year, but it could be costly to Rovi if the merger somehow falls through.

A 10-Q filed Friday by Rovi noted that Rovi could be on the hook, under certain scenarios, to pay TiVo a termination fee of $36.6 million, or $9.2 million, “depending on the specific circumstances.” Rovi’s filing did not detail the specific circumstances that would cause the fee to be on one side of the scale or the other.

“These provisions might discourage a potential competing acquirer that might have an interest in acquiring all or a significant part of Rovi from considering or proposing an acquisition or might result in a potential competing acquirer proposing to pay a lower price per share to acquire Rovi than it might otherwise have been willing to pay,” the company explained.

Among other associated risks, Rovi noted that it will be exposed to certain costs tied to the deal, whether or not it’s completed, such as “significant” fees and expenses related to legal, accounting, financial advisors, and printing.

Update: TiVo shares closed Friday (April 29) at $9.98 each, up 56 cents (5.94%); Rovi shares closed at $17.62 each, up 27 cents (1.56%). 

With Rovi now poised to acquire TiVo, a big question going forward is whether Rovi intends to maintain and perhaps try to expand grow TiVo’s retail business, which features the new 4K-capable TiVo Bolt and its family of Roamio DVRs.

After all, Rovi opted to phase out the Fan TV set-top following its 2014 acquisition of Fanhattan and instead focused on integrating Fan TV’s navigation and discovery software on a wider range of platforms.

Rovi, though, was clear that retail will remain a part of the game plan after it closes the TiVo deal.

“We view this [retail] as a very important channel to be able to maintain focus on,” John Burke, EVP and COO of Rovi, said in an interview. “We think there’s great opportunity there, so we fully expect to continue to leverage that.”

He also said TiVo’s experience in the direct-to-consumer side has also helped the company build better products for its MVPD partners.

TiVo, meanwhile, recent underwent a restructuring that calls for a greater focus on MVPD partnerships and more efficient spending on the retail end.  At the time, Naveen Chopra, TiVo’s CFO, interim CEO and SVP of corporate development and strategy, said his company would spend more resources building new classes of products “that go beyond the traditional DVR.”

Today, Chopra said Rovi is the “right” partner for TiVo in part because Rovi “understands the role and the value, strategically and otherwise, of our consumer business….It was important for us to find a partner that could take that forward and do it in a way where we’re combining it with other businesses that bring a lot of scale and a lot of synergies."

TiVo and Rovi are not yet going into details on how the deal came together, noting that that information will appear in the proxy that will be filed in the coming weeks.

Per The New York Times, the merger was spurred in part by Glenn Welling of Engaged Capital, an activist investor who claimed one of two Rovi board seats about a year ago. At the time, Engaged Capital had been unhappy with Rovi’s financial performance and strategy.  

“It’s a deal that made a lot of sense for both parties,” Chopra said. “It almost doesn’t matter how we ended up there [based on] the fact that we've put together a company that, I think, is going to be a very influential player going forward.”

Burke also addressed how Rovi intends to mix and integrate products from both companies, noting that the plan is to offer the market “best of breed” options. Both companies, for instance, make guides for set-tops and mobile devices, offer data analytics products, as well as search and recommendation offerings (TiVo bought Digitalsmiths in 2014, while Rovi, in addition to the Fan TV deal, acquired voice search firm Veveo in 2014).

Burke said Rovi and TiVo are also aligned on their views of the FCC’s proposed set-top rules. TiVo has been a strong advocate of a successor to the CableCARD.

“The path forward is really all about consumers having a bit more flexibility in how they get access to the services that are important to them,” Burke said.

But there will still be some things to clean up.

TiVo, for example, is working with Comcast on a non-CableCARD solution for products sold at retail; Rovi, meanwhile, filed a patent suit against Comcast and some of its box suppliers after the MSO’s license expired and wasn’t renewed.

Earnings update

Capping off a busy morning for Rovi, it also posted Q1 results. Revenues dropped 12%, to $118.4 million, alongside a net loss of $17.7 million, widened from a loss of $15.5 million in the year-ago quarter.

Looking ahead, Rovi still expects fiscal year 2016 revenue of $490 million to $520 million and non-GAAP diluted income per share of between $1.35 to $1.65. Those figures exclude any revenues from possible renewals with Comcast or Dish Network.