Gemstar-TV Guide Signs Major IPG Advertising Deal With J. Walter Thompson; JWT Client Ford Division Gains Access to New Technology in Largest IPG Ad Deal to Date
NEW YORK--May 31, 2001--Gemstar-TV Guide International Inc. , the nation's premier provider of Interactive Program Guide (IPG) services, announced an 18-month advertising agreement with Ford Division and its agency J. Walter Thompson (Detroit) for the Gemstar-TV Guide IPG platform.The Ford Division is one of the nation's largest and savviest marketers, known for its innovative use of technology in its marketing campaigns. This agreement represents the Ford Division's largest advertising commitment to date in the digital television convergence arena. With this agreement, Ford becomes the first long-term automotive category advertiser on the Gemstar-TV Guide IPG platform.
The platform includes the TV Guide Interactive(SM) system -- the on-screen digital cable guide provided to multichannel video programming distributors, and the GUIDE Plus+(R) system -- the on-screen guide built directly into television sets and VCRs. Currently, the Gemstar-TV Guide IPG platform reaches more than 12 million U.S. television households.
The Gemstar-Ford Division agreement includes a quarterly advertising schedule to run from the second quarter in 2001 through the third quarter in 2002, as well as lead-time to utilize certain to-be-released new IPG technology within the automotive category for use in Ford's marketing campaigns.
"This partnership allows us (Ford Division) to test a variety of new technologies and experience the capabilities of what interactive TV can do for us. The TV Guide Interactive and GUIDE Plus+ systems have really proven they are the leaders in this medium and they understand how to connect us with consumers," said Rich Stoddard, marketing communications manager - Ford Division, Ford Motor Co.
"We are always looking for innovative and unique ways to reach our consumers, and what better way than with the Gemstar-TV Guide Interactive Program Guide products," added Andy Prakken, senior partner, executive director of communication planning, J. Walter Thompson-Detroit. "We constantly strive to keep Ford Division ahead of the curve when it comes to new media and technology while maintaining relevant means of connecting with our consumers, and that's what the Gemstar-TV Guide IPGs do for us."
For television viewers, the Gemstar-TV Guide IPG platform offers an enhanced television viewing experience that combines comprehensive program listings information with easy-to-use functionality for navigating the 100-plus channel universe.
The Gemstar-TV Guide IPG offers comprehensive program listings and descriptions for the broadcast and cable channels received in the home, featuring plot summaries, airtime, ratings, length and other important details to assist in making viewing choices. The listings can be sorted by category, time or channel, and programs can be selected for viewing at the touch of a button, or scheduled for future enjoyment.
For advertisers, the Gemstar-TV Guide IPG platform is a cost-effective means of reaching 12 million television households with strong demographics composed of digital cable subscribers and high-end television purchasers. In an increasingly fragmented television programming space, the Gemstar-TV Guide IPG platform occupies the focal point for viewers seeking suggestions and guidance, thereby permitting advertisers to send messages to interested viewers in a receptive mood.
"This is a milestone in the birth of a brand-new media that is destined to become a major force in the advertising industry," said Jeffrey Mahl, president of media sales at Gemstar-TV Guide. "We are thrilled that the Gemstar-TV Guide IPG platform satisfies the Ford Division's new media and digital convergence needs. When an industry leader such as Ford makes such a major commitment to a new media platform, it is testimony that the IPG platform has achieved critical mass and is on its way to full acceptance by the advertising community.
"The vision created by J. Walter Thompson-Detroit and their client, the Ford Division, of utilizing the Gemstar-TV Guide platform to appeal to prospective customers will set an example for the advertising community to follow in its constant quest for innovative and effective means to capture consumer interest at point of decision during dedicated television viewing time," Mahl added.
About Gemstar-TV Guide International Inc.
Gemstar-TV Guide International is a leading global technology and media company focused on consumer entertainment. The company has three major business sectors: the Technology and Licensing Sector, which is responsible for the development, licensing and protection of intellectual property and technology -- the company's technology includes the VCR Plus+(R) system, the interactive program guide ("IPG") marketed under the GUIDE Plus+(R) and TV Guide Interactive(SM) brands and the electronic book ("Gemstar eBook(TM)"); the Interactive Platform Sector, which owns, operates and derives recurring income from advertising, interactive services, content sales and e-commerce on the company's proprietary IPG and eBook platforms; and the Media and Services Sector, which operates the TV Guide(R) magazines, TV Guide Channel(SM), TVG Network(SM) and other television media properties, provides programming and data services and operates a media sales group that services all of the company's media platforms.
The IPG is built into various devices, including televisions, VCRs and set-top boxes (cable, satellite, telco, Internet) and displays a multi-day television program guide on the television screen from which the consumer can view, select, tune to or record programs. The Gemstar eBook is a reading device that can store tens of thousand of pages, and permits a user to purchase and receive instant delivery of any book, magazine or newspaper over a standard telephone line.
The company's media properties reach more than 100 million U.S. homes on a weekly basis. The company's products and services are available in more than 60 countries worldwide.
The company's services, technology and intellectual property are licensed to major technology, media and communication companies in the consumer electronics, Internet, personal computer, satellite, cable television and telco industries. Licensees and customers include AOL Time Warner, AT&T, Cablevision, Charter, Comcast, Cox, Hughes Network Systems, Matsushita, Microsoft, Mitsubishi, Motorola, Philips, Shaw, Sony, Thomson Multimedia, Zenith and others.
The company has more than 170 issued U.S. patents in the general area of audio-visual technologies with more than 4,100 claims, more than 190 issued foreign patents, and continues to actively pursue a worldwide intellectual property program and currently has more than 300 U.S. and more than 800 foreign patent applications pending.
About Ford Division
Ford Division is the largest automotive marketing sales division in the world and has been the top-selling U.S. car and truck brand for the past 14 years. Ford brand is a division of Ford Motor Co., the world's second-largest auto company, with headquarters in Dearborn, Mich., and selling vehicles in more than 200 markets. In calendar year 2000, Ford Division sold a record 3.47 million vehicles.
Ford Division is home to 13 product lines, including the Ford F-Series pickup, America's No. 1-selling vehicle, and Ford Explorer, the top-selling sport utility vehicle. One of the goals of Ford's community involvement is to lead in corporate citizenship in the communities in which it does business.
Except for historical information contained here, the matters discussed in this news release contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from any such forward-looking statements are detailed in the company's reports filed from time to time with the Securities and Exchange Commission.
Note to Editors: Gemstar, TV Guide, Gemstar eBook, GUIDE Plus+, TV Guide Interactive, VCR Plus+ and PlusCode are trademarks of Gemstar-TV Guide International Inc. Other product names used herein are for identification purposes only and may be trademarks of their respective companies.