Digital TV

Interactive TV

T-Commerce

Convergence of Internet, Broadband, and Television Technology

DEFINITIONS

• Active Task State

• Active Use State

• Passive Media State

• High Complexity

• Passive Task State

• Passive Use State

• Active Media State

• Low Complexity

PC TV

“Lean Forward” vs. “Lean Back”

Differences Between PC and TV Use

Enhanced TV

Individualized TV

Personal TV

Internet TV

On Demand TV

Play TV

Banking and Retail TV

Educational TV

Community TV

Global TV

The iTV Bundle

ADVANTAGES OF iTV

• makes tv more fun and smart

• more applications can be run on it

• gets non pc users on the net

• closes digital divide (no cost of ownership)

• transparent internet (no urls)

• Interactive Content, anytime anywhere

• Subscription

• Pay Per View

• Advertising

• Portals/Walled Gardens

• T-Commerce

Business Models

The DVB-based "Open..." iTV system in the UK is generating $1.6 million (USD) in revenues every week, and this is expected to reach $20 billion annually by 2004. These revenues break down to $11 billion from advertising, $7 billion from T-commerce, and $2 billion from iTV subscriptions .

• Cable• Time Warner, Rogers

• Telecom• Sprint, Bell

• Digital Broadband Satellite • Direct TV

Distribution Systems/Network Operators

Sources: NCTA, Paul Kagan Associates, A.C. Nielsen, Cable Program Investor, SkyREPORT, CableWorld.

• Conservative estimate of six million actual iTV users in Europe.

• Andrew Wallace, V.P. Global Marketing for Pace Micro Technology in the UK, world's largest set-top box manufacturer, says "as the digital box becomes the home networking terminal, we will see interactive TV penetration in Europe grow from today's 15 to 20 percent to 60 percent and eventually 90 percent penetration over the next five years".

• The U.S. cable industry has 68 million households subscribing to cable, and about 5 million digital customers at the end of 1999 with projections for 10 million homes by the end of 2000 and 40 million homes by 2006.

Random Bits -- Market Penetration

–GM/Hughes' DirecTV reports about 7.5 million customers. Echostar's Dish Network reports almost 4 million subscribers today, but those numbers will bounce up after they launch interactive OpenTV services later this year. DirecTV is still planning its iTV play.

•Datamonitor predicts 67 million digital TV subscribers on all platforms by 2003.

•Forrester Research predicts that 80 percent of all European households will have interactive TV services by 2010.

Random Bits -- Market Penetration

The Shift to iTV

T-Commerce Demo

http://www.commerce-tv.com/home_fr_noflash.html

http://products.liberate.com/tv_navigator/demo/index.html

T-COMMERCE IN EUROPE

I-TV

will surpass the Internet as Europe's primary e-commerce platform by 2005

OPEN

• UK’s first national interactive television service

• Not the internet on TV

• Operates in single mode

http://www.open-here.co.uk

OPEN’S AUDIENCE

• Sky Digital now has 3.8 million households – means that over 10 million people have access to Open

• Open accesses 1 in 6 UK homes

• BSkyB forecasts that by 2003, 7 million homes will have access to Sky digital

OPEN

• Services available via digital satellite and household phone

• Set-Top Box

• Remote control & cordless keyboard

SERVICES• Shopping• Banking• Travel• Information• Entertainment• E-mail

AOLTV • Simultaneous

Mode of Delivery

– Picture in Picture– Both TV and

Network Services are visible

Players in this method

AOLTV

Current State of AOLTV• Introduced in June to limited area

– $250 for hardware; $14.95 or $24.95/month

• Should be available across the US by January 2001

• Providing development workshops on creating commerce opportunities– attempting to capitalize on the US$3.2 billion

in TV-based online ad fees expected by 2004

‘Personalized’ TV• Pause live broadcasts• Instant replay• Rewind/Replay TV• Skip commercials• Time-shift shows

Hardware

DVR – Digital Video Recorder

Records without need for tape

TiVo – Personal TV Service

SoftwareElectronic Program Guides

Integrating with the Web…

Hype or Reality?• Technology• Business• Content• Consumer

Technology• Last Mile - remote areas • Digital signal standard• Lack of industry standards• Database technology ITV broadcaster• Open vs. Forced Access

• AT&T vs. AOL -Time Warner

Business• Required capital investment• Business Models - who pays?• Advertising - totally new environment• Is it Sustainable or just a Novelty?

Content• Lack of funding for ITV projects• “Creative” challenges• Compelling content- “emotive” not web

page• Research T-Commerce product suitability

Consumer• Privacy Concerns• Lack of market research• Lack of consumer ITV awareness• Traditional passive viewing experience• Willingness to pay for ITV