Tuesday’s complex agreement with EchoStar [DISH] brings Gemstar-TV Guide [GMST] one-step closer to tidying up a litigious mess and some 9mln subs nearer to full distribution of TV Guide Channel. EchoStar will make a one-time $238mln cash payment ($190mln for licensing intellectual property and $48mln for Gemstar’s declining C-band Superstar/Netlink Group LLC (SNG), UVTV distribution, and SpaceCom businesses), launch the TV Guide channel on its "America’s Top 60" tier and extend the contract for TVG Network. Both sides agree to end litigation, which leaves Gemstar CEO Jeff Shell with Scientific-Atlanta [SFA] on his legal to-do list. The series of deals already concluded will put the TV Guide Channel in nearly 80mln HHs on long-term contracts; just one year ago, most of the channel’s distribution was short-term or un- contracted. Gemstar capped the day with a 4Q/’04 earnings report filled with progress. 4Q net loss was $491.4mln ($1.20/diluted share), compared to a net loss of $1.3bln ($3.19/diluted share) in the previous year’s 4Q. For the year ended Dec 31, Gemstar showed a net loss of $577.4mln ($1.41/diluted share), compared to $6.4bln ($15.64/diluted share) in ’02. "We’ve gotten our corporate house in order," Shell told analysts. Now the company will concentrate on growing businesses including "developing, deploying and monetizing the TV Guide on Demand business" in ’04. — Shell says Cox and Cablevision are the only Top 10 MSOs without a Gemstar guide deal but noted that the company will reach Cox customers through its recent deal with Pioneer (Cfax, 03/01).

The Daily


Doing Good

Verizon is donating $100,000 to the Greater Cincinnati and Northern Kentucky African American Chamber of Commerce for its Digital Horizons: Bridging Ohio Communities initiative.

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