JPMorgan analyst Sterling Auty notes that Rovi (ROVI) shares are down about 11% this morning after AT&T (T) announced yesterday that DIRECTV plans to offer over-the-top, or OTT, subscriptions later this year. Auty attributes the decline in Rovi to investor concerns that the rise of OTT offerings and "skinny bundles" will lead to net lower revenue for Rovi, but he contends that the positive impact of potentially adding new OTT customers will more than offset potential revenue losses as subscribers of DirecTV, Comcast (CMCSA), Dish (DISH) and Charter's (CHTR) services potentially trade down. The analyst, who sees the upcoming contract expirations of Rovi's deals with Comcast and Dish as potential catalysts for the stock, thinks investors should be looking to buy, not sell, Rovi shares.

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