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Technology Stocks : Gemstar Intl (GMST)

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To: John Boluyt who wrote (1106)12/21/1999 1:57:00 PM
From: Eric Jacobson  Read Replies (2) of 6516
 
John, thanks for posting the article. The contents of the article hasn't been discussed much here, but did everyone catch some of the comments?

Boylan said its current digital interactive program guide, which has space on TV screens for advertising revenue, reaches some 2.7 million viewers after its initial rollout this year.

Using research from investment brokerage Goldman Sachs, Boylan said TV Guide/Gemstar's forecast
of $1.5 billion in annual revenues could grow over 50 percent in one year on new ad revenue from only
its current IPG subscribers...

Boylan's glimpse into possible future revenues, however, does not include millions of cable TV homes that are expected to sign up for new cable modems and set-top boxes this year.

While the TV Guide IPG reaches only 2.7 million cable TV homes now, it can potentially reach up to 40 million homes as soon as digital set top boxes with cable modems are available.


So, they could generate approx. $750 million in advertising revenue from the current 2.7 million user base, and the user base could reach 40 million. Are these not stunning numbers?
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