What's on tonight? That TV-age query becomes a challenge as the number of channels to choose from grows. Thus the rise of the "interactive program guide," leading to NBC's announcement of a deal with Gemstar to help develop its new service.
The companies said today that NBC would take a 5 percent stake in TDN, a joint venture between Gemstar International Group Limited and Thomson Consumer Electronics that develops advertising, promotion, and content services for the "Guide Plus Gold."
NBC will provide data bandwidth in its television signal to support the guide, embark on a multimillion-dollar advertising campaign to promote its services, and itself will become a charter advertiser. In return for its investment, NBC will get featured placement on Guide Plus Gold, along with its cable networks, MSNBC and CNBC.
Tom Rogers, NBC president for cable and business development, said investing in and getting a lead spot on the guide was important because it will function as a "gateway of choice for TV audiences."
With the Gemstar guide, viewers can preview programming or scan 48 hours worth of listings on an exclusive window, even while watching another show. The company that developed VCR Plus has also included a feature that allows "one-touch, point-and-click" recording from the guide. RCA, Proscan, and Sony will begin shipping TVs outfitted for Guide Plus Gold this summer.
"We have always been excited about the advertising opportunity that Guide Plus Gold may present, and this agreement with NBC is a major endorsement of its viability," Henry Yuen, chief executive officer of Gemstar, said in a statement.
The deal comes as Gemstar's directors rejected a US$2.8 billion takeover offer from United Video Satellite Group, which provides satellite-delivered program guides to media companies. Gemstar said the $45-a-share bid was "inadequate from a financial point of view."
Reuters contributed to this report.
