Gemstar's press release, more details....
Gemstar and Thomson Enter Strategic Alliance for Marketing Electronic Books
Updated 9:03 AM ET March 15, 2000
PASADENA, Calif. (BUSINESS WIRE) - Gemstar International Group
Limited (NASDAQ:GMST) and Thomson Multimedia (NYSE:TMM)
announced that they have entered into a long-term strategic agreement to jointly
pursue the digital electronic book ("eBook") market worldwide.
Under the agreement, Thomson will license eBook technology from Gemstar,
and commit to a multi-year product shipment plan aimed at placing tens of
millions of eBook devices into consumers' homes and establishing eBook
readers as the preferred choice for reading novels and periodicals.
Gemstar will operate a secure distribution system for the sale and delivery of eBook content to consumers, and
Thomson will receive a share of the revenues derived from the sale of this content.
Digital electronic books are lightweight devices aimed at duplicating the familiar experience of reading a paper
book, yet contain electronic-age features to further enhance convenience and enjoyment.
Earlier this year, Gemstar announced its entry into the eBook business with the acquisition of two pioneering
companies: SoftBook(R) Press, maker of the SoftBook Reader(TM), and NuvoMedia Inc., maker of the Rocket
eBook(TM).
"This alliance with Thomson is the first major strategic step in Gemstar's initiative to make electronic reading a
preferred pastime," said Henry C. Yuen, chairman and chief executive officer of Gemstar. "Thomson's leadership
position in the consumer electronics business and its commitment under this agreement will virtually ensure the
establishment of eBook readers as a popular consumer electronics category worldwide.
"Most importantly, Gemstar is excited to create yet another win-win proposition with Thomson to augment our
already excellent relationship under the EPG joint venture."
Thomson and Gemstar will jointly develop and introduce new versions of the Rocket eBook(TM) and SoftBook
Reader(TM), expected to be available to consumers later this year. The new eBooks will be even handier, lighter
and able to store more pages of text. The Rocket eBook series will target novel readers, mobile professionals and
jet setters.
The device is a paper-back sized reader with a 5.6" diagonal high-resolution monochrome back-lit touch screen
that weighs less than one pound and stores dozens of books. It has a built-in lithium battery offering 15 to 35
hours of continuous reading and months of standby power.
Other features include a SmartMedia(R) memory expansion option that allows the Rocket e-Book to store over
100,000 pages and MP3 music capability. The SoftBook Reader will be a higher-end model. At 2 pounds, it is
smaller than a magazine and thinner than a hardback book.
It is ideal for reading a wide range of text formats, including magazines, textbooks and novels. It has an 8.2"
diagonal, full-color LCD screen with VGA resolution and displays over 32,000 colors. With an optional Compact
Flash(R) memory card, the SoftBook Reader can also hold over 100,000 pages.
Both devices are seamlessly integrated with the Internet, allowing users to purchase and download published
content any time, anywhere using a phone line or a computer with Internet connectivity. The SoftBook Reader
also offers Ethernet connectivity. The typical amount of time to download a book ranges from seconds to 2 or 3
minutes.
Owners of the Rocket eBook or SoftBook Reader will also have access to a personalized online bookshelf with
practically unlimited capacity, where they can store and retrieve all of the content they purchase.
NuvoMedia and SoftBook Press have signed distribution agreements with virtually all of the major book
publishing houses and leading magazine publishers, in great part due to their device-specific encryption system,
which provides high content security.
Late last year, NuvoMedia and SoftBook Press co-developed the Open eBook Standard, which is supported by
more than 200 companies including Microsoft Corp. (MSFT).
Gemstar's NuvoMedia and SoftBook Press have content agreements with all of the major book publishing
houses, and are currently distributing popular magazines such as Time, Newsweek, Fortune, Money, Industry
Standard, Fast Company, and newspapers such as The New York Times, The Wall Street Journal and The
Washington Post.
Many more new books and periodicals will be available in eBook form. Recently, Simon and Schuster announced
that Stephen King's latest book, "Riding the Bullet," is available exclusively in eBook form.
"NuvoMedia and SoftBook have done a truly superb job of building a trusted system for secure content
distribution, a complementary set of user-friendly reading devices, and a broad-based relationship with publishers
and retailers," said Yuen.
"Under this new alliance with Thomson, NuvoMedia and SoftBook, as new members of the Gemstar family, will
be able to leverage Gemstar and Thomson's collective resources and relationships in media and consumer
electronics to increase awareness, lower cost, and broaden the availability of titles -- elements that are essential to
making eBooks the preferred way to read in the new millennium."
Currently, both eBook devices have retail distribution through their respective Web sites. The Rocket eBook is
also available on the Internet through Barnes and Noble (www.barnesandnoble.com). During the holiday selling
season, Rocket eBooks were available at Barnes and Noble retail stores and the inventory was sold out in that
period.
The combined Thomson and Gemstar marketing effort will greatly expand the distribution channels for the eBook
readers -- in addition to book stores and Web sites, consumers will be able to purchase eBook readers in the
thousands of familiar consumer electronics outlets that support the RCA, Proscan and GE brands.
Gemstar and Thomson are planning an extensive advertising and consumer awareness campaign to support the
launch of the new eBooks later this year, with the goal of making the eBook reader a consumer electronics
product category as popular as VCRs, cellular phones and PDAs.
Digital electronic books have important advantages over traditional paper books. One eBook device can store tens
to hundreds of titles, making it ideal for convenient, portable access to reading material from virtually any
location. The online bookshelf ensures that any purchased content will never be lost or destroyed.
The dual-mode access system (direct dial and Web-based) ensures that content can be retrieved anywhere in the
world: Foreign travelers can access the latest books and hometown news hassle-free. The eBook is "instant on,"
and always displays the last-read page. The back-lit display and font size can be adjusted by one touch of a button
to enhance readability.
Other convenience features include interactive dictionaries, which allow the user to point to a word and see its
definition, book marking, cross referencing, search by words and note taking.
"To Gemstar the eBook business is attractive because it not only represents a strong entry as a preferred mobile
information device which can lead to vast opportunities in interactive services and e-commerce, but also because it
rewards the content partners with massive savings in the publishing process that can be turned into immediate
profit," added Yuen.
"The elimination of paper, ink, binding, physical distribution and returns removes the single largest cost factor in
the $100 billion plus publishing business, bringing benefits to authors, publishers and retailers alike, not to
mention the dramatic shortening of the time to press, which is critical in the educational and professional
segments."
In addition to traditional publishing, Gemstar's eBook strategy also includes working with additional strategic
partners to expand existing eBook services and functions and to pursue such opportunities as publishing
electronic magazines, full-color catalogs, reference books, textbooks and technical publications.
Regarding new functions, Gemstar may offer personal-digital-assistant ("PDA") features (such as appointment
calendars and telephone directories), communication functionalities (such as e-mail and chat), information services
(such as financial news and sports scores), and leisure entertainment services (such as crossword puzzles and
games).
Gemstar develops, markets and licenses proprietary technologies and systems aimed at making technology
user-friendly for consumers.
Gemstar's technology and intellectual property are licensed to major companies in the consumer electronics,
satellite, cable and personal computer industries, including Aiwa, Akai, America Online (AOL), Americast, Cox,
Daewoo, Funai, GTE, Hitachi, Hughes Network Systems, JVC, LG Electronics (Goldstar), Matsushita
(Panasonic, Quasar), Microsoft Corp., Mitsubishi, Orion, Philips (Magnavox, Philips), Quadravision, Samsung,
Sanyo, Sharp, Shintom, Sony, THOMSON multimedia (GE, Proscan, RCA, Thomson), Toshiba, Uniden, US
West and Zenith.
Gemstar has 90 issued U.S. patents in the general area of audio-visual technologies containing more than 1,875
claims and more than 90 issued foreign patents. The company continues to pursue a worldwide patent prosecution
program and has more than 120 pending U.S. patent applications and more than 320 pending foreign patent
applications.
Gemstar is a leading provider of electronic program guide services, which allows users to view a television
program guide on screen, obtain details about a show, sort shows by themes or categories, and select shows for
tuning or recording, all through the remote control. In the United States, data for Gemstar's electronic program
guide services are carried on the ABC, Fox, CBS, NBC, UPN and PBS networks.
Gemstar's electronic program guide has been built into a number of models of new televisions, VCRs and
TV/VCR combination units.
Gemstar's electronic program guide is also licensed to cable, telco and MMDS service providers, and has been
integrated into direct broadcast satellite receivers, digital and advanced analog cable set-top boxes, PCTV and
other Internet devices and computer operating systems such as Windows 98.
Gemstar's VCR Plus+(R) instant programming system is a world standard for VCR programming. The VCR
Plus+ system allows a user to record a television show simply by entering a number -- the PlusCode(R) number
-- printed in television program guides.
The PlusCode numbers are published by more than 1,800 newspapers and television program guides worldwide,
with a combined circulation of over 330 million.
The VCR Plus+ system has been licensed to virtually every major television and VCR manufacturer and is now
available in 40 countries and on six continents, including the United States, Canada, United Kingdom, continental
Europe, Japan, Southeast Asia, Australia, New Zealand, South America and South Africa.
On Oct. 4, 1999, Gemstar announced that it had entered into a merger agreement with TV Guide Inc.
(NASDAQ:TVGIA) in a stock-for-stock purchase transaction under which TV Guide will become a wholly
owned subsidiary of Gemstar. The transaction is expected to close in the second quarter of 2000 subject to
governmental approval.
Except for historical information contained here, the matters discussed in this news release contain
forward-looking statements which involve risks and uncertainties, including the timely availability and acceptance
of new products, the impact of competitive products and pricing, the management of growth, and the other risks
detailed from time to time in the company's Securities and Exchange Commission reports, including the reports
on Form 10-K and Form 10-Q.
Note to editors: GUIDE Plus+, VCR Plus+ and PlusCode are trademarks of Gemstar. Other product names used
herein are for identification purposes only and may be trademarks of their respective companies.
Contact: Gemstar International Group Limited Elsie Leung/Linda Lloyd da Silva (investors) 626/792-5700 |
