GMST news:
Gemstar-TV Guide International Inc. and Cogeco Cable Inc. Announce 10-Year Exclusive IPG Agreement
PASADENA, Calif. & MONTREAL, Apr 10, 2001 (BUSINESS WIRE) -- Gemstar-TV Guide International Inc. (Nasdaq: GMST chart, msgs), the world's premier provider of Interactive Program Guide (IPG) services, and Cogeco Cable Inc. (TSE: CCA chart, msgs), Canada's fourth-largest cable operator, today announced the signing of a long-term exclusive IPG agreement.
Terms of the agreement provide for customary license fees, advertising/t-commerce splits, Video on Demand and Interactive Television access integration for Cogeco Cable's Ontario and Quebec systems. As a result of this new agreement, Cogeco Cable will deploy Prevue Interactive(SM) (marketed under the brand TV Guide Interactive(SM) in the United States) in all digital cable homes served by Cogeco Cable.
TV Guide Interactive is currently used in more than 6 million U.S. digital cable households. As of Feb. 28, 2001, Cogeco Cable served approximately 906,500 basic service customers. Cogeco Cable offers its digital service to 80% of its customers and has so far deployed more than 105,000 digital television set-tops in its systems.
"Cogeco Cable has enjoyed remarkable success in digital services since its launch in 1999 and our strategic plan includes a continued and significant commitment to the growth of digital services to our customers. The new digital environment has been very positively received by our customers in Ontario and Quebec, and we have determined that these customers will continue to be best served by the market leader, Gemstar-TV Guide International," said Louis Audet, president and chief executive officer of Cogeco Cable.
"With their user-friendly IPG technology, strong patent portfolio and aggressive integration strategy, Gemstar-TV Guide International provides us with the best IPG solution and the most effective way to remain a leader in the development of new digital services."
"We are very pleased to be able to expand our long-standing relationship with Cogeco Cable by adding them to our ever-growing list of prestigious IPG licensees. The diversity of Cogeco Cable's systems offers us an opportunity to display the multi-lingual capabilities of our interactive guidance services. Cogeco's commitment to deploy Prevue Interactive as their exclusive IPG confirms their great respect for our IPG technology and significant international IPG patent portfolio," said Peter C. Boylan III, co-president and co-chief operating officer of Gemstar-TV Guide International Inc.
The Canadian cable industry currently provides service to approximately 7.8 million television households of the approximately 11.5 million television households available in the country.
"We look forward to working with Cogeco Cable, and to adding their subscribers to the sizable distribution base we are building in Canada," said Rick Phillips, executive vice president of TV Guide International. "Cogeco Cable's commitment to delivering leading-edge communications technologies is the ideal environment for Prevue Interactive and our aggressive integration strategy."
Denis Belanger, vice president of Engineering and Development of Cogeco Cable, commented that "Gemstar-TV Guide International has demonstrated its commitment to address the needs of both our English and French-speaking customers, providing us with a common solution for all of our systems.
"The exclusive, long-term nature of our deal with Gemstar-TV Guide International is based on our confidence in their vision for the interactive guide and their ability to deliver a quality product which will satisfy the needs of our customers."
About Gemstar-TV Guide International Inc.
Gemstar-TV Guide International Inc. (Nasdaq: GMST chart, msgs) is a leading global technology and media company focused on consumer entertainment. The company has four major business sectors: the Technology and Licensing Sector, which is responsible for the development, licensing and protection of intellectual property and technology; the company's technology includes the VCR Plus+(R) system, the interactive program guide ("IPG") marketed under the GUIDE Plus+(R) and TV Guide Interactive(SM) brands and the electronic book ("Gemstar eBook(TM)"); the Interactive Platform Sector, which owns, operates and derives recurring income from advertising, interactive services, content sales and e-commerce on the company's proprietary IPG and eBook platforms; and the Media and Services Sector, which operates the TV Guide(R) magazines, TV Guide Channel(SM), and other television media properties, as well as a media sales group that services all of the company's media platforms; and the Investments & Holdings Sector, which operates a variety of businesses including the startup Television Games Network.
The IPG is built into various devices, including televisions, VCRs and set-top boxes (cable, satellite, telco, Internet) and presents a multi-day television program guide on the television screen from which the consumer can view, select, tune to or record programs. The Gemstar eBook is a reading device that can store tens of thousand of pages, and permits a user to purchase and receive instant delivery of any book, magazine or newspaper over a standard telephone line.
The company's media properties are used by more than 100 million U.S. homes on a weekly basis. The company's products and services are available in more than 60 countries worldwide.
The company's services, technology and intellectual property are licensed to major technology, media and communication companies in the consumer electronics, Internet, personal computer, satellite, cable television and telco industries. Licensees and customers include AOL, AT&T, Cablevision, Charter, Comcast, Cox, Hughes Network Systems, Matsushita, Microsoft, Mitsubishi, Motorola, Philips, Sony, Time Warner, Thomson multimedia, Zenith and others.
The company has more than 160 issued U.S. patents in the general area of audio-visual technologies, with more than 3,900 claims and more than 195 issued foreign patents, and continues to actively pursue a worldwide intellectual property program, with currently more than 300 U.S. and more than 800 foreign patent applications pending.
Except for historical information contained here, the matters discussed in this news release contain forward-looking statements which are subject to risks and uncertainties. Factors that could cause actual results to differ materially from any such forward-looking statements are detailed in the company's reports filed from time to time with the Securities and Exchange Commission.
Note to Editors: Gemstar, TV Guide, Gemstar eBook, GUIDE Plus+, TV Guide Interactive, VCR Plus+ and PlusCode are trademarks of Gemstar Development Corp. Other product names used herein are for identification purposes only and may be trademarks of their respective companies.
About Cogeco Cable Inc.
Cogeco Cable provides cable television and telecommunication services to approximately 906,500 basic service customers in Quebec and Ontario and is the fourth-largest cable operator in Canada based on the number of basic service customers. Cogeco Cable has approximately 95,000 high-speed cable modems and 105,000 digital television set-tops deployed in its systems. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (TSE: CCA chart, msgs).
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