America Online, Inc. Announces Key AOL TV Partnerships
DULLES, Va.--(BUSINESS WIRE)--May 11, 1999--
AOL Signs Pacts With DIRECTV, Inc., Hughes Network Systems, Philips
Electronics, and Network Computer, Inc. to Help Bring Connected
Interactivity to TV Experience
America Online, Inc. (NYSE:AOL), the world leader in branded interactive services, today announced four partnerships that are key to the ongoing development of AOL TV(SM).
The AOL TV product will extend connected interactivity to the television experience and make facets of the AOL experience more accessible through the television. AOL TV will take AOL's hallmark ease-of-use and convenience and translate key pieces of AOL functionality to the television set as well as add new features to enhance the overall television experience.
The Company has completed AOL TV agreements with the following four partners:
-- DIRECTV, Inc., the nation's leading digital television service
provider with more than 7 million subscribers(a), will
collaborate with AOL on a new service that combines digital
satellite television programming from DIRECTV with AOL TV's
enhanced interactive television Internet service.
-- Hughes Network Systems (HNS), the world's second largest
manufacturer of the DIRECTV system in the world, will design and
build the dual purpose AOL TV/DIRECTV set-top receiver. HNS will
leverage its industry-leading convergence expertise in the
product's design.
-- Philips Electronics, the leading provider of set-top boxes, will
produce an advanced set-top box enabled for AOL TV.
-- Network Computer, Inc. (NCI) will provide the complete software
platform for the AOL TV service. NCI's TV Navigator software will
enable the Philips and DIRECTV System set top boxes to display a
range of Internet-based television services and content for both
dial-up and satellite set-top boxes. NCI's Connect Server will
manage and administer the AOL devices connected to the network.
Both technologies provide an open Internet platform scalable to
support AOL's expanding customer base, and are future-proof to
support additional information appliances.
AOL TV will give members the ability to connect to a new AOL interactive service designed to enhance the television-viewing experience. The set-top boxes will be connected to AOL through built-in 56k modems over standard phone lines, and will be enabled for digital subscriber line (DSL) connectivity as well.
Bob Pittman, President and Chief Operating Officer of America Online, Inc., said: "These partnerships with industry leaders DIRECTV, HNS, Philips Electronics, and NCI are major building blocks for AOL TV. AOL has always focused on making the online experience a key part of our members' lives. As consumers want to extend that interactive experience to connected non-PC devices, we will continue to deliver our hallmark ease-of-use and convenience, and as connected interactivity becomes available on platforms like the television, AOL will be there for consumers. This extension of the AOL brand also will provide significant opportunities to our advertising and commerce partners."
Barry Schuler, President of America Online, Inc.'s Interactive Services Group, said, "We anticipate that AOL's powerful brand will drive the acceptance and value of interactive television. Our membership base of more than 17 million, who are embedding connected interactivity into their lives, will be among those most interested in extending this experience to other devices. With our strong focus on consumers, we will deliver the best interactive TV product available anywhere, and with our interactive relationship with our members, we can explain and sell these new ideas."
"Our partnership with AOL will take television entertainment to the next level," said Larry Chapman, executive vice president for DIRECTV. "By aligning ourselves with the world's leading online service we are able to offer customers all of the benefits of connected interactivity that will create an even richer television experience -- truly giving DIRECTV subscribers the world at their fingertips. This agreement marks the last installment in our 1999 interactive roll-out strategy, which includes a personal TV solution, enhanced television capabilities and will add a complete interactive television experience."
HNS Senior Vice President Paul Gaske added, "At Hughes Network Systems, we've always prided ourselves on our industry-leading expertise in the area of convergence technology, and we're glad to be applying that knowledge towards the design of this exciting new AOL TV/DIRECTV product. Hughes Network Systems' over-arching goal is to maintain its lead in the satellite convergence race through key strategic partnerships and compelling multimedia product design. This new AOL TV effort meets all those objectives -- it's a natural for us."
Rob Van Oostenbrugge, President of Philips Electronics' Digital Video Systems, said: "Our strategy at Philips has been to align with the top service providers. America Online, as the world leader in interactive services, is a perfect partner for us to bring the interactive experience to television. AOL TV will deliver compelling tools and unique content that will give viewers more control of their television experience. This set-top box, specifically designed for AOL, will combine high-quality TV viewing with an easy-to use, consumer-oriented interface to the AOL TV service."
"This powerful alliance demonstrates that NCI and AOL share the same vision for bringing a new world of interactivity to consumers through the television and other information appliances. Together, NCI, Philips, HNS and DIRECTV can extend AOL's market-leading service to living rooms across America," said Mitchell Kertzman, President and CEO of Network Computer, Inc. "NCI, through our partnerships in the U.S., Europe, and Japan, has been a trailblazer in making enhanced TV available to consumers around the world."
Along with AOL TV, AOL plans to translate its popular online experience to non-PC devices to bring the convenience of the online medium beyond the computer, as part of its AOL Anywhere strategy to make AOL available through multiple connections and multiple devices.
About America Online
Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the world's leader in interactive services, Web brands, Internet technologies, and e-commerce services.
America Online, Inc. operates: two worldwide Internet services, America Online, with more than 17 million members, and CompuServe, with approximately 2 million members; several leading Internet brands including ICQ and Digital City, Inc.; the Netscape Netcenter and AOL.COM portals; and the Netscape Navigator and Communicator browsers.
Through its strategic alliance with Sun Microsystems, the Company develops and offers easy-to-deploy, end-to-end e-commerce and enterprise solutions for companies operating in the Net Economy.
About DIRECTV
DIRECTV(R) is the nation's leading digital television entertainment service providing access to more than 185 channels of sports, entertainment, news, music and family programming.
Since its launch nearly five years ago, DIRECTV has continuously added new services and channels as part of its commitment to enhance programming and set itself apart from cable and other satellite television services.
DIRECTV is a trademark of DIRECTV, Inc., a unit of Hughes Electronics Corporation. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock. Visit DIRECTV on the World Wide Web at www.directv.com.
(a) Includes subscribers from the recently acquired PRIMESTAR
medium-power DBS service.
About HNS
A world leader in satellite products and network systems for more than 25 years, HNS is the second-largest manufacturer of DIRECTV digital satellite systems and the provider of the award-winning DirecPC satellite Internet service. In addition, HNS has 55 percent of the global VSAT market and has shipped more than 300,000 terminals.
Headquartered in Germantown, Md., near Washington, D.C., the company has sales and support offices worldwide. HNS offers communications network solutions that include a complete line of integrated satellite and enterprise networking products encompassing VSATs, frame relay, and fixed and mobile wireless networks.
HNS is Hughes Electronics Corporation company and an ISO-9001-certified manufacturer. The earnings of Hughes Electronics are used to calculate the earnings per share attributable to GMH (NYSE symbol) common stock.
About Philips Electronics
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of US$ 33.9 billion in 1998. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors and one-chip TV products.
It is also the inventor of the CD and has been deeply committed to this technology since its introduction. Its 228 800 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics and IT services (Origin).
Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges.
About NCI
Network Computer, Inc. is a privately held company founded in 1996. Oracle Corporation, America Online, Acer America Corporation, NEC Corporation, Nintendo, Sega Enterprises, Ltd., Sony Corporation and NCI employees are its primary investors.
NCI builds Internet software for information appliances and sells its software technology worldwide through partners in North America, Europe and Asia. Corporate headquarters are in Redwood Shores, California. For more information visit NCI's Web site at nc.com.
CONTACT:
America Online, Inc.
Wendy Goldberg, 703/265-2359
or
DIRECTV
Gina Scalise, 310/726-4654
or
HNS
Fritz Stolzenbach, 301/212-7890
or
NCI
Jayne Benjulian and Stephanie Willerton, 650/631-5351,
415/512-0500
or
Philips Electronics
Marty Gordon, 650/846-4475
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BW0153 MAY 11,1999
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