UEI Still Has Role in MVPDs' Shift to 3rd-Party Digital Media Adapters: Analyst

Multiple MVPDs will shift from developing their own third-party digital media adapters to developing apps that can run on third-party DMAs such as Apple TV 4K or Android-based alternatives, Colliers analyst Steven Frankel wrote investors Tuesday. The shift could eliminate development delays that hampered Universal Electronics Inc. (UEI) over the past few years, said the analyst. UEI will still play a “critical role” in a third-party DMA, providing the voice remote and technology to configure and control additional devices, Frankel said. UEI launched several “interesting products” over the past few months, including an Apple TV 4K remote for MVPDs that want to use that platform for their next set-top box, a new voice remote for Liberty Global’s latest 4K set-top box and the Comfort family of connected thermostats for OEM and hospitality markets, announced Thursday (see 2102120042). Revenue headwinds facing the remote control maker include continued struggles during the COVID-19 pandemic of legacy customers that rely on truck rolls for new installations, said Frankel, citing Dish Network and AT&T's DirecTV. Other challenges are a shift by some TV OEMs from completed remotes to a higher margin combination of chips and software, and UEI’s decision to walk away from some lower margin products, he said. UEI's Q4 call is Thursday at 4:30 p.m. EST.