Operators Shake Up TVGateway

The MSO-backed TVGateway LLC interactive-program-guide consortium
restructured as an independent company in a move that will leave founder
WorldGate Communications Inc. with no revenue from TVGateway.

Backed by Adelphia Communications Corp., Charter Communications Inc., Comcast
Corp. and Cox Communications Inc., TVGateway was formed by WorldGate in 2000 in
order to bring some competition to dominant IPG vendor Gemstar-TV Guide
International Inc.

WorldGate managed TVGateway and generated most of its revenue from the
consortium, but the restructuring will leave WorldGate -- which is already
gasping for money to stay alive -- with no revenue from TVGateway.

The TVGateway board named 20-year cable veteran Bill McCall as its CEO last
June but finally got around to announcing it Thursday.

The MSOs also put more money into TVGateway, but McCall wouldn't say how

While TVGateway's backers have already committed to giving Gemstar the
majority of their subscribers, McCall said he still sees room for growth.

"Even if they are committed to giving the majority of their subscribers to
Gemstar . there's plenty of business available for a company like TVGateway,"
McCall said.