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Technology Stocks : Gemstar Intl (GMST)

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To: TigerPaw who wrote (1427)1/10/2000 12:08:00 AM
From: NY Stew  Read Replies (4) of 6516
 
TigerPaw,

I would really like to see GMST address this type of appliance through partnership or aquisition or it will be just a niche which is replacable.

Gemstar has addressed this issue. I have posted the patent information for recording to a hard drive. The rest will play out
when it is advantageous for Henry & Co to do so. You simply cannot tell the regulators that competition exists on one hand and then file new infringement suits on the other.

One matter that I am confident of is that the IPG will not become a niche product. Another is that Gemstar has a minefield of patents surrounding the IPG and that if one doesn't get you another surely will. Microsoft and AOL did not agree to the terms they did without good reason.

That being said, TiVo and RePlay are recording services. Gemstar's tuning technology is one barrier to entry for channel navigation. Navigation and presentation of multi-sourced content on a single IPG is another.

It is my belief that with more and more live channels, VOD services and tiered programming times the need to record will become less and less. If the recording of a program is desired then you simply press a single button on the remote while viewing the Gemstar IPG. How inconvenient is it to go to one guide to navigate and another to record? Too much hassle IMO for the channel surfers' insatiable need for instant gratification. The psychology of the living room is much different than that of the den or office.

VCRs using tape are going to dissapear in the next few years to be replaced by VCRs on disk with recording to CROMs or DVDs for permanant copies.

VCRs should be around for another decade or so because they are so deeply entrenched. Consumers have billions of dollars
of VHS tape libraries and with quality VCRs priced under $100
they will more likely purchase another unit than to spend thousands to replace or copy their collections. This does not even take into account the hundreds of millions VHS and C-VHS personal recordings.

Just some late night thoughts.

Regards
Stew




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