In a classic Innovator’s Dilemma move, Gemstar has invested $2.8 million in BuddyTV. The Innovator’s Dilemma basically says that for a company to survive, it must get into new technologies long before they are as profitable as their existing technology. If they wait too long, newer, smaller companies will embrace and develop the new technology, giving them the lead when the new technology is as or more profitable than the old stuff.

Gemstar’s cash cow is the Electronic Program Guide (EPG), the time and channel based “what’s on” listing you see on your cable company’s Guide Channel, and on many set-top boxes. Gemstar has a patent on that style of listing, and gets $9 per device that uses it. They also sell and license the TV Guide brand.

This is a very interesting move for such an entrenched, traditional TV based business. Gemstar has seen the future, and they know it is broadband-enabled.