Gemstar Patent Rulings Open Field for Program Guide Developers

Cable World, Sept 9, 2002

Byline: K. C. NEEL

Cable operators are looking beyond Gemstar-TV Guide International for interactive program guide solutions now that the company's patent protection strategy has fallen flat.

Several IPG companies are vying for MSOs' attention. It is critical the operators retain control of the IPG, including advertising generated from it, branding and any e-commerce opportunities that may arise in the future, says Gene Ferolgia, CEO of iSurfTV. The revenue implications are tremendous, he says, and cable operators should reap their fair share of the profits.

Operators say they want someone else to create their IPGs, but don't want to give up control of them. Cox Communications was one of the first MSOs to eschew Gemstar, instead affiliating with Pioneer and Scientific-Atlanta.

"[Pioneer's IPG] was the most customer-friendly, and they were willing to work with us more than Gemstar was," says Dallas Clement, Cox's SVP-strategy/development. "S-A's guide is a good product, too."

Other IPG offerings include Microsoft's guide, which was introduced in June. "We think of the guide as the first step in a whole new line of products for us and operators," says Ed Graczyk, marketing/communications director for Microsoft TV.

ISurfTV is in the final stages of being certified on Motorola boxes and is currently testing its service in Latin America. And TV Gateway, the partnership formed by Cox, Comcast, Charter, Adelphia and WorldGate as a leveraging tool to negotiate with Gemstar, is enhancing its features and working to expand its distribution.

"We're comfortable with the choices we made," Clement says. "We're hopeful they can develop a guide that meets our customers' needs. Everyone has to continue to innovate to grow the business."

THE NEXT QUESTION:

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Will the IPG universe go through consolidation similar to the interactive TV sector?

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When will fledgling IPG providers begin to see real interest from MSOs?