I doubt that Gemstar was able to extract advertising revenue not carried on their guide.
That could be quite serious. I am not sure if you follow TiVo at all, but TiVo started what it calls "Showcases" which are opt-in advertising for TiVo viewers. Chrysler, for instance, creates their own very entertaining, long-form commercials, to introduce new products to TiVo users. And the product has proved quite popular, with Coke jumping in and several others. GMST will be the enabling technology for the Comcast PVR, and this type of ad will be one of the more lucrative I think. It GMST does not get a cut from this sort of ad, which is directly accessed from the Guides, but not seen on the Guide, then GMST will be shut out from what may likely be the source of much of the iTV ad revenues. And will essentially be giving away technology and settling for some of the crumbs.
I think the Guides themselves will carry a lot of ads, but it is this interactive sort of stuff that will carry the high price tags. Enabled by the Guide, but not delivered right on the Guide.
It could be a loop-hole that puts a huge dent into GMST's future potential as a media portal. I'm sure under Henry such opportunities were covered under the contract, I'd like to see the contractual definition under these new deals.
Tinker |
