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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: NY Stew who wrote (7156)9/28/1999 2:40:00 AM
From: pala  Read Replies (1) of 54805
 
This did come from a Research Bulletin 4/30/99 TV Guides IPG
Business by John H Corcoran (the same guy as the 6/23/99 38pg GMST report.

stephens.com

TV Guide?s IPG is quickly becoming the solution of choice for MSOs. The Company is the industry leader with
approximately 1.5 million IPG subscribers, which represents 90% of all digital IPGs deployed. TV Guide is also
adding about 6,500 new subscribers each day, and its service is distributed to more than 800 cable systems in North
America that collectively pass 34 million households. Although we believe consumers will have a choice of IPGs in
the future, we expect that cable operators will dictate the first screen that a subscriber sees on his television. TV
Guide is well positioned to become that first screen because of its existing relationships with MSOs that already
distribute its IPG to 1.5 million households, TV Guide Channel to more than 50 million households and
Superstation WGN (through UVTV) to more than 45 million households. In addition, the Company recently signed
a ten-year contract to be the exclusive provider of IPG services to AT&T/TCI. We also anticipate that TV Guide
will provide IPG services to some of News Corp.?s satellite operations. Although the IPG market is becoming more
crowded, we believe few providers will be able to overcome the distribution hurdle, and we expect TV Guide to
expand its lead over the competition in the near term.
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