With nearly 200 patents covering interactive technologies, Gemstar (GMST) has business deals with some of the world's biggest players in TV
The media mogul's News Corp. (NWS) owns 43% of Gemstar-TV Guide. Plans to put Gemstar-TV Guide's programming guide on every receiver linked to his global network of satellites.
Has licensing agreements with Microsoft (MSFT) for its WebTV and Ultimate TV set-top boxes and for its Windows 98 software. Microsoft paid $45 million up front, plus $10 to $30 a box, depending on volume. Gemstar also gets up to 75% of revenues generated from the advertising and commerce initiated on the guide.
Gemstar will put its interactive TV guide on all of Thomson's RCA, GE ProScan, and other TV-set brands. Thomson pays an annual fee of $10 million and takes a minority share of ads and commerce sold through the guide. Also a licensee of Gemstar technology for the RCA brand Gemstar e-Book Reader.
Zenith, owned by Korean LG Electronics, now pays Gemstar $10 a set for its programming guide.
The former cable titan remains a key strategist for Gemstar-TV Guide. Initially controlled Gemstar rival United Video, which combined with TV Guide, which then merged with Gemstar.
The Japanese electronics giant pays Gemstar $10 per set-top box for the programming guide. Sony (SNE) also pays $10 for each TV set sold with the programming guide imbedded in it.
The nation's largest cable operator pays 30 cents per subscriber for Gemstar's interactive guide. It's now in 2.9 million homes and aims to be in all 16 million. Gemstar also gets 85% of all ad revenue. Is negotiating a sharing arrangement for commerce revenue generated on the guide.
Its General Instrument unit pays $10 per set-top box in deal with Gemstar for its guide.
Set-top makers used by the satellite service pay $10 a piece for each of the 9 million boxes used by DirecTV subscribers. Is negotiating a license agreement to use Gemstar's upgraded program guide that would include a monthly fee and a cut of any revenue for ads or commerce.
AOL TIME WARNER
AOL (AOL) paid an up-front fee of $40 million and pays an estimated 60 cents a month per subscriber for its just-launched AOL TV service. Gemstar is negotiating new long-term deals that would cover AOL TV and AOL Time Warner's cable subscribers.