UPDATE 1-RESEARCH ALERT-JP Morgan downgrades Sonic Solutions

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July 23 (Reuters) - JP Morgan downgraded digital media software company Sonic Solutions Inc (SNIC.O) to "neutral" from "overweight", citing slowing consumer spending.

The brokerage said retail check suggests sales of Roxio products, under which the company sells photo, video, music, and digital-media management applications, could fall short of prior expectations.

The brokerage believes a recovery in OEM revenue is likely to be muted by cyclical tradedowns and head-on competition from Adobe Systems Inc (ADBE.O).

OEM (Original Equipment Manufacturer), when used to describe software, is a version of the software bundled with other hardware or software rather than the same software package sold on its own as a retail package.

Shares of Sonic closed at $6.84 Tuesday on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Anil D'Silva)