Doesn't gemstar own starsight or is it echostar? and if they don't own starsight i guess thomson is playing both sides of the fence.
Thomson Is Buying Interest In StarSight
Plans call for joint consumer promotions
StarSight is getting a much needed financial shot in the arm from Thomson, which has agreed
to purchase a 13% stake for $25 million. StarSight, developer of an onscreen
program-navigation system, has been struggling financially since startup and is still short of
the number of service subscribers it needs to break even. Plans are to use part of Thomson's
cash infusion for promotions aimed to raise consumer awareness and subscriptions, which
now number "in the tens of thousands," StarSight president Larry Wangberg said.
The company has derived most of its revenue to date from licensing royalties paid by
manufacturers putting system chipsets into TVs, VCRs, TV/VCRs, cable-TV converters and
satellite IRDs.
Additionally, Thomson and Sony have gotten rights to parts of the technology, such as
one-button menu recording, for their own onscreen guides used in satellite receivers, and
several cable systems now use the service. The buy-in agreement lets Thomson purchase a
million additional StarSight shares over two years at $7.50 each, and a million more over three
years at $10 each. Thomson said it will "aggressively incorporate and promote StarSight
technology and related services" in selected products, and noted that it will "be compensated
for its marketing efforts and will share in StarSight revenues" from consumer electronics.
Thomson said the agreement provides for "a joint marketing fund to be established to promote
the StarSight-capable products."
Meanwhile, Philips -- which now markets the only StarSight set-top adapter -- is linking with
Gemstar to be the first to market TVs, VCRs and TV/VCR combos equipped to receive the
competing TV Guide Plus onscreen program guide. Developed by Gemstar in a joint effort
with TV Guide, the TV Guide Plus is to be transmitted along with the signals of ABC owned
and affiliated TV stations. Although it will only offer listings for the next 48 hours of TV
programming, against StarSight's seven days, the Gemstar service will be free, while
StarSight and the now fully operational Video Guide services charge subscription fees. |
