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

To: tinkershaw who wrote (6360)	3/13/2004 12:17:36 PM
From: tinkershaw	Read Replies (1) \| Respond to of 6516

I believe N.Y. Stew mentioned this in the past, that most of GMST's patents have not been tested, and the most powerful ones are the ones that enable more advanced Guide features. And it may be the strength of these more advanced patents that has lead to these agreements and partnerships. Without reading the contracts, all I can have is faith that GMST management did indeed obtain rights to ensure maximum returns on this media strategy, and that loop-holes, such as Showcase like ads, are not excluded from GMST's advertising revenue share. But to conclude in this long answer, indeed, I much prefer QCOM's power to make grumbling partners pay no matter how bitterly they feel about it. Standard Oil, RCA, IBM, MSFT, INTC, CSCO, now QCOM. GMST once looked like it could be another RCA like outfit, a historical monster company. It is not at all certain if they still possess this sort of market power. But then again, it is not at all certain that they haven't gained just such similar power with the distribution agreements they have now reached. Others with input on the topic? Tinker

To: tinkershaw who wrote (6360)	3/13/2004 2:17:52 PM
From: Mike Buckley	Respond to of 6516

Tinker, Did GMST have enough bargaining power to ensure its future revenue share on ads that are not directly plastered on the Guide? I doubt it. Gemstar's bargaining power weakened to the point of getting a 50/50 split of advertising revenue on the Guide. Under the Yuen regime they were getting an 85/15 split. That is to say they were getting contractual agreements, though little advertising revenue. At the current 50/50 split, they are still getting no meaningful advertising revenue. Time will tell. --Mike Buckley