To: Benny Baga who wrote (508 ) 2/10/2001 7:35:45 PM From: Benny Baga Respond to of 589 TVGateway Wins Some Subs Multichannel News 2/9/01 3:13:00 PM Steve Donohue Gemstar-TV Guide International Inc. may be losing its lock on the interactive-program-guide business. Several cable systems owned by Comcast Corp. and Charter Communications Inc. recently switched out Gemstar’s 'TV Guide Interactive' IPG for the product provided by the TVGateway consortium, which is backed by those MSOs and WorldGate Communications Inc., MSO officials confirmed. WorldGate formed TVGateway last summer, along with Adelphia Communications Corp., Cox Communications Inc., Comcast and Charter. When it was formed, TVGateway’s founders said the goal was to create competition for Gemstar, which has used its strong patent portfolio to dominate the market. But until now, TVGateway’s only launches were on a few small cable systems owned by operators outside of the consortium. The consortium itself hadn’t taken the idea beyond the press release that announced the formation of the company. Comcast and Charter are now signaling that they’re serious about commercial deployments. Executives at Cox said they would eventually like to migrate all of the MSO’s systems to a single IPG, and TVGateway could be that guide. Comcast recently switched out TV Guide for TVGateway in Mobile, Ala., and Willow Grove, Pa., company officials said. Charter has dropped TV Guide for TVGateway in LaGrange, Ga., and a 'handful' of other systems, spokesman Dave Anderson said. Although LaGrange was the only system Anderson would name, a customer-service representative at Charter’s Leveland, Texas, system said company has dropped TV Guide for TVGateway in several Texas communities. Those include Brownsfield, Leveland, Slaton, Morton and Littlefield. Officials at WorldGate, which owns 20 percent equity in TVGateway, wouldn’t discuss the deployments. The company said it’s up to its MSO partners to name their deployments. The only TVGateway launches the company has announced were with AT&T Broadband and with MetroCast Cablevision in New Hampshire, which counts 35,000 subscribers. In November, AT&T said it would launch TVGateway and WorldGate’s Internet-television service in Tacoma, Wash., and Waterloo and Cedar Falls, Iowa. Boylan couldn’t be reached for comment, but he sent an electronic mail to Multichannel News Friday afternoon stating, 'We remain 100 percent confident with our patent position, and as of this moment, we continue good-faith negotiations with these parties [Charter and Comcast]. We don’t consider WorldGate a viable alternative to TV Guide Interactive.' Benny