Rovi has verified the rumor that had been circulating that it had signed a multiyear contract with Apple, according to multiple sources, but has provided no information about the licensing agreement.
The move short-circuits the rumor mongering, but the lack of details has only served to inspire speculation.
Apple is known to be interested in getting into the video business, an obvious next step after making itself an integral part of the music industry with iTunes.
Since Rovi provides electronic program guides, one avenue of speculation is that Apple is going to bundle a Rovi EPG with its Apple TV over-the-top video box, or some similar product, and compete directly with MVPDs.
Others discount that. They note that Rovi has a vast database of metadata usable for recommendation engines and other interactive applications that support the search and discovery of content, and that Apple could use that technology to support online sales of video.
The lack of details didn’t stop Rovi’s stock from leaping in value.