I like the way it affects Gemstar's prospects. AOL TV will be launched later this year. I assume the new merger allows AOL to distribute Time Warner content on AOL TV, which will make it abundantly more attractive to consumers. AOL TV uses Gemstar's
Exactly. This merger creates the first behemoth committed, and dependent, on interactive television and the e-commerce potential inherent in that. The ATHM/Comcast/T hybrid was always a kluge, with a heavy pipe, but needing a lot of capital for infrastructure upgrades and providing only the same content as can be obtained elsewhere on the net, only faster. The AOL/TWX merger provides rich content that can be form-fitted to IP services (e.g., real-time interactive full-multimedia CNN or MTV broadcasts) and promotes delivery through all high-speed comm media, to include satellite, wireless, and cable. That, IMO, makes AOL/TWX the godzilla of new media, while GMST will profit from the satellite, wireless, and cable distribution of AOL/TWX media through AOL TV boxes and satellite delivery. Qcom makes out through AOL/TWX wireless delivery, which will speed up the demand for CDMA HDR services. Heck, maybe they can even put some bright LEDs in the AOL TV box so cree makes out :-) |
