Comcast and Gemstar-TV Guide Form Joint Interactive Program Guide Development Group

Strategic Insights -

Comcast Corporation and Gemstar-TV Guide International have announced a landmark agreement to form a joint interactive program guide (IPG) development group, combining their expertise to create an industry-leading guide for Comcast and the cable industry as a whole. The joint venture, which will be 51% owned by Comcast and 49% owned by Gemstar-TV Guide, will leverage the existing TV Guide Interactive IPG as a foundation for the development of a new open platform with published application protocol interfaces (APIs). This platform will enable innovation and accelerate the deployment of interactive products in the cable industry.

Key Takeaways:

  • Comcast will incorporate TV Guide branding into the majority of its interactive program guides, while Gemstar-TV Guide will provide operational support for the jointly developed guide on Comcast's systems.
  • The joint development group will have the right to launch all joint development products across Comcast's digital subscriber base, and Gemstar-TV Guide will have exclusive rights to distribute the joint development products to other multichannel video providers.
  • Comcast has committed to distributing the TV Guide Channel, TV Guide On Demand, and the TVG Network on its systems, while also launching the TVG Network on certain Comcast systems.
  • The joint group will have 51% ownership by Comcast and 49% ownership by Gemstar-TV Guide, with Comcast as the managing partner.
  • The i-Guide from Gemstar-TV Guide Interactive will serve as the initial basis for the joint development group's efforts.
  • The joint development team will provide development and support for Gemstar's existing and future affiliate partners.

Statistics:

  • Comcast serves approximately 21.3 million cable subscribers (Source: Comcast Corporation).
  • Comcast will make a one-time payment of $250 million in cash to Gemstar-TV Guide as part of the patent license and distribution agreement (Source: Press Release).
  • The joint development group expects to create an open platform with published APIs, accelerating innovation and deployment in the cable industry.

Sources:

  • Comcast Corporation (http://www.comcast.com/)
  • Gemstar-TV Guide International, Inc. (http://www.gemstartvguide.com/)
  • Note to Editors: Gemstar, TV Guide, TVG, and TVG Network are trademarks or registered trademarks of Gemstar-TV Guide International, Inc. and/or its affiliates.