2005 02 24 EPG War4

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The Chronicle of the Great EPG War Yakov Kamen

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About myself: I was founder and CTO of iSurfTV Corporation that developed first 3D-enabled TV guide aiming to compete with Gemstar's market monopoly. I invented a concept of 3D EPG and created over 50 issued and pending patents. Today iSurfTV is a property of Tribune Corporation…. I had been one of “field combat officers” at the great EPG war and my presentation is not a fundamental historic document but is an entertainment story. Enjoy it! Yakov Kamen March-April 2005

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PART-I HISTORY OF THE TV PROGRAM GUIDE

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EPG means “Electronic Programming Guide”: What is it? EPG Developer would say that EPG is a: Complex system that aggregates, filters, delivers, visualizes TV schedule data TV user would say that EPG is an: On-screen application that let me surf channel schedules, search for my favorite shows, and set reminders PVR (personal video recorder user) would say that EPG is an : On-screen system allowing me to do a single click recording and control a list of recorded TV programs Gemstar-TV Guide would say that EPG is : TV Guide+ Cable Service Providers (MSOs) would say that EPG is a : Pain on the neck Yakov Kamen would say that EPG is a : The unique application replacing Windows and browser on TV screen. This is the only application needed on TV

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1st Paper Guide Programming Guide Evolution 1920 1940 1960 1980 2000 TV Guide Grid Passive EPG, teletext Grid-based EPG 3D EPG Internet EPG

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History First Paper Guide, 1941

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History First TV Guide Magazine, 1953

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History First Usage of the Grid

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PART-II GREATE EPG WAR

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Objective of the War: TV Screen Control

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WAR GENERALS Henry C. Yuen High technology entrepreneur Born: 1951 Birthplace: China Yuen's family moved came to the United States from China when he was 17 years old. He received a B.S. in mathematics from the University of Wisconsin in Madison, and a Ph.D. in applied mathematics from the California Institute of Technology in 1973. He later earned a law degree from the Loyola University School of Law. Yuen and his college friend Daniel Kwoh founded Gemstar International to manufacture electronic products in 1989. Yuen and Kwoh invented the VCR Plus, offered for sale in 1990, to make it easier to record TV programs. Sales skyrocketed and consumer electronics manufacturers paid Gemstar for the right to use the technology in their products. Gemstar also gets royalties from TV Guide magazine, which publishes the number assigned to each program. By the late 1990s, Gemstar was worth $3 billion. The company came under the scrutiny of the Securities and Exchange Commission in Oct. 2002 and Yuen was fired from Gemstar in April 2003. Rupert Murdoch Media Tycoon Born: 1931 Birthplace: Australia Owner and CEO of News Corp. Empire

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WAR GENERALS Bill Gates Born: 1951 Birthplace: Seattle No comments John Malone Media Tycoon Born: 1941 Birthplace: USA Owner and CEO of Liberty Media Holding Other

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WAR: Stage 1 Gemstar versus StarSight VCR+ was the best invention of the time Patent acquisition as a new weapon Henry Yuen won the game Microsoft (You know who) Gemstar (Henry Yuen) News Corp (Murdock) Liberty Media (John Malone) StarSight Acquired TV Guide (10years of fight) 20% News vs. 20% Gemstar License deal $57M Destroyed Henry’s empire Hostile acquisition for ~$280M WAR: Stage 2 Gemstar versus TV Guide 10 year of litigation The most spectacular victory of Gemstar

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WAR: Stage 3 Gemstar versus everyone Microsoft surrender GI $200M settlement New secret weapon: US patent Microsoft (You know who) Gemstar (Henry Yen) News Corp (Murdock) Liberty Media (John Malone) StarSight Acquired TV Guide (10years of fight) 20% News vs. 20% Gemstar License deal $57M Destroyed Henry’s empire Hostile acquisition for ~$280M WAR: Stage 4 Liberty Media vs. New Corp 20% of GMST vs. 20% of NEWS

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WAR: Stage 5 Rebel Movement vs. Gemstar SA, Pioneer, Echostar said “No” to Gemstar’s request to pay patent “retributions” WAR: Stage 6 Death of Gemstar Empire $70+M SA license financial problem Stock cap go down from ~$30B to $1B Murdock fight back and fired Henry Yuen Microsoft (You know who) Gemstar (Henry Yen) News Corp (Murdock) Liberty Media (John Malone) StarSight Acquired TV Guide (10years of fight) 20% News vs. 20% Gemstar License deal $57M Destroyed Henry’s empire Hostile acquisition for ~$280M SA, Pioneer, Echostar

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END OF WAR Securities and Exchange Commission Litigation Release No. 18530 / January 6, 2004 Accounting and Auditing Enforcement Release No. 1937 / January 6, 2004 SEC Sues Three Additional Former Senior Executives of Gemstar-TV Guide For Their Part in Financial Fraud Securities and Exchange Commission v. Henry C. Yuen et al., Case No. CV 03-4376 NM (MANx) (C.D. Cal.)

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Post war time: Comcast (Guideworks) Microsoft (IPTV/MCE) News (DirecTV) Winners: Gemstar-TV Guide Sony Cablevision Losers:

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PART-III EPG TECHNOLOGIES OVERVIEW

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“Guide can be 3D”

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Preview (Mini IPG) Portal Allows fast sneak information Allows multiple application preview navigation Scroll My Shows Allows fast search of the best currently Creates listing of recorded shows available show Search Recording Functionality Allows advanced search of the data Provides all conventional in the TV schedule recording functions Remote Controller (RC) and Menu, Settings and Help Keyboard Allows to choose one of the components, to set service settings, and find help Major Components of Advanced IPG

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PART IV: FUTURE BATTLEFIELD

Gemstar CE IPG: Three Major Strengths: 

Gemstar CE IPG: Three Major Strengths VBI Grid IP TV Guide Brand

Gemstar CE IPG: Three major weaknesses: 

Gemstar CE IPG: Three major weaknesses No Cost-effective TCP/IP support Grid IP portfolio is maturing TV Guide is not a Media Center

TCP/IP will win over VBI : 

TCP/IP will win over VBI P2P will make it cheaper Entetel Data Delivery Server Re-transmitter Servent Optimal schedule data compression: Will make personal data delivery cost invisibly small

XGrid is a next step after the Grid : 

XGrid is a next step after the Grid Optimal TV Listing Visualization and Navigation: 3x listings surfing speed increase

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DIRECTION TO GO: Space Shifting (view recorded content anytime anywhere) Dynamic Tuners Support Inline advertisement insertion EPG will make as much money in TV direct access ads as Google is making on the Web EPG Integration with Internet VOD over Internet by P2P streaming and file sharing Yakov Kamen yakov@entetel.com