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Gemstar/Superstar: Expect More C-Band Declines


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#1 OFFLINE   Steve Mehs

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Posted 04 April 2003 - 05:15 AM

Gemstar TV Guide said this week it expects more declines for its C-Band business, especially given its agreement with EchoStar to transition big dish customers to DISH Network and the ongoing slump for C-Band.

In a filing sent to the Securities and Exchange Commission this week, Gemstar said its Superstar/Netlink business provided service to 361,000 C-Band subscribers as of Dec. 31, a decrease of 34 percent from the subscribers served by Superstar/Netlink at the end of 2001. During 2002, the number of C-Band subscribers decreased by 29 percent to about 590,000 subscribers.

In 1999 Superstar/Netlink entered into a marketing alliance with EchoStar to promote and solicit orders for DISH Network among its C-Band customers. Superstar/Netlink receives an initial commission for each subscriber who subscribes to DISH Network and a monthly residual commission over the life of the agreement, which expires at the end of 2005, Gemstar said.

This week, Gemstar TV Guide, best known for its interactive program guide technology in addition to Superstar, reported a net loss of $6.23 billion for its fiscal 2002, compared with a year-earlier loss of $750.7 million. Revenue was $1 billion, compared to $1.16 billion for the prior year period.

On Tuesday, Motorola's Access Control Center reported that C-Band subscribers fell to 534,058 in March.

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