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

To: Mike Buckley who wrote (6365)	3/13/2004 6:53:00 PM
From: tinkershaw	Read Replies (2) \| Respond to of 6516

The non-exclusivity gives the carrier an opportunity to use a guide that doesn't extract ad revenue from them. This is another mystery spot. I've heard conversations that GMST gets its ad share no matter which IPG is used, but the non-exclusivity gives the cable companies the choice to use other guides if they so want. But without reading the contracts further I have no way to verify this. Heck, I just sort of figured out how this "recurring" revenue model works, and that it is really just carrier fees. Maybe the agreements do indeed allow Gemstar the off-Guide ad revenue. This would be very valuable. I know TiVo figures its future is in advertising on its PVR. If GMST is going to be the enabling technology for, as an example, Comcast's PVR, then I would think GMST should get a cut of any ad revenues that its technology enables. This may or may not be the case, however, as for example, GMST does not get a cut of the VOD even though the Guide is the enabling directory and technology that powers the service. But then again VOD is not advertising, and VOD is not T-Commerce. Dang it, ever get the feeling that Henry Yuen was a motor mouth in comparison to the present management in their business transparency. Good God what am I saying! {for those who don't get the sarcasm, GMST under Henry Yuen was probably one of the least transparent management teams in the history of the world}. I'll contact the company's IR department to ask the question. We'll see if the "new" Gemstar has improved upon Yuen's Gemstar that never responded. Thanks Mike, let us know how it comes out. Even if they do respond, getting them to understand the question may present some difficulties. I look forward to their anticipated response. One thing I can say is that the IPG will be the most viewed television network in the world. It may get higher ratings than even the Super Bowl, and do this not just once a year, but every single day! I still cannot figure out why the Guides have not attracted more advertisers given that the Guides are such a highly rated device and the distribution footprint is surely large enough by now. Is it that advertisers think that it might be too annoying to the viewer to advertise on the Guide? I doubt it given the ads that are being sold even on school buses these days. What the heck is holding back Guide advertising? Tinker P.S. I do acknowledge that the change from 85/15 to 50/50 advertising split from Henry's day may seem to be a negative. But I'm actually of the opposite opinion, at least on this topic. Simply put, what incentive did the cable companies have to clutter their systems with ads if all they are getting is a 15% cut? Not much of one. I think at 50-50 we will see much more development of the Guide as an advertising platform, and much quicker than otherwise would be the case. Anyone who have the Guide see any promising advertising? I have Comcast here in Atlanta and the ads, except for American Express Blue card, and starting to see some timely programming announcements (that actually work, as an example there was one that was timed starting an hour or so before the show started and instantly caught my eye), the ads on my Guide are of low grade and have be, I'm certain, throw ins from the magazine advertisers. Freebies, given to advertisers who buy TV Guide magazine space. Low Carb diets, refinance your home, patent your invention, that sort of thing, and these ads are poorly done. Given that the Guide will be the most viewed item probably in the entire world, and on a daily basis, something has to give here I think.