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Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: 100cfm who wrote (6307)	2/28/2004 9:06:56 PM
From: tinkershaw	Read Replies (2) \| Respond to of 6516

From the broker reports I've been able to glean, the cable deals are worth about $.15-$.30 per box, per month, or around $3.00 per year, plus the carrying fees and advertising for the additional TV Guide Channel, Games Channel, and a 50/50 split of whatever advertising goes out. Contracts with the CEs are somewhat more difficult to ascertain. It use to be a good estimate of $10 per box, or thereabout, seems now that it is more like $6 per box sold, or $2 per year on a recurring basis, and I've had a hard time figuring out this model. In the end though, it does seem to me, to be that the advertising on Guides is now, more than ever, the holy grail. I think in a world of TiVo and 500 channels and remote controls, advertising on the Guide is still one of the most overlooked prime spots to advertising. Just imagine looking at Buy Dominos as a prompter for late night viewers, flashing 3 or 4 times an hour as the viewer surfs. Even better if it could be localized with a phone number, or in the future (and Comcast has spoke about the future being now) two way connectivity with the ads. I think increasing interactive programming like you see on American Idol, or the TV Games channel will encourage this two way interaction in the future, as it will aid the couch potato in increasing his or her leisure to an even greater extent. Oh, Coke, so refreshing. Talk about the old "lets go out to the loooobbby, lets all go out to the..." movie theatre like subliminal advertising. The potential there is still enormous. But that is where I still see the real upside. I think CE revenues will exceed expectation over the next 5 years or so as the new digital sets, DVDs, PVRs, et al start to roll-out. Tinker