Gemstar's two-way wireless e-commerce system may provide a second stream of revenues from transaction fees. One touch (of the remote) shopping may prove to be a killer application.
SOURCE: Pace Micro Technology plc
Digital Television
Signals The Future Of
Home Shopping, Says
The Pace Report
BOCA RATON, Fla., Sept. 30 /PRNewswire/ -- Interactive
television, not the personal computer (PC), is likely to be the
consumer's preferred method of home shopping, according to a
survey of 1,004 consumers conducted on behalf of Pace Micro
Technology by Gallup to mark the first anniversary of the launch of
digital television services in the UK (1st October 1999). The Pace
Report 2000 is the 3rd annual review of consumer attitudes towards
digital television and related subjects.
Some 42 percent of consumers would feel more comfortable using
television for home shopping, while just 26 per cent of respondents
stated a preference for using PCs. Despite reports earlier this year
suggesting consumer resistance to home shopping, only 25 per cent of
respondents said they would use neither method to buy from home.
According to Pace, these figures demonstrate a surprisingly high level
of consumer acceptance of interactive digital television services, such
as home shopping, even though such services have only recently been
introduced and are currently available in just a few areas.
Among those consumers who expressed a preference, almost two
thirds (59%) favored interactive television over PC-based home
shopping (37%).
For what is termed the PC Generation, 16 to 24 year olds who have
grown up with PCs in school and at home, the margin in favor of
using TVs, as opposed to PCs, for home shopping is even greater.
Some 65 percent of 16 to 24 year olds favor the use of interactive
television. According to Pace, the dominance of TV over PC among
this age group bodes well for the long-term future of interactive digital
television services.
Good news for the digital television industry is also to be found in
consumer awareness that cable and satellite operators will be offering
additional services beyond increased program choice. Although
television- based home shopping and home banking services have
only become available very recently, almost three-quarters (72%) of
respondents, from across the UK, are aware that these services will
be accessible via digital television.
That said, the majority of respondents (52%) state they would feel
more comfortable using the PC, rather than TV, for email and
Internet access. Interestingly, although the ability of interactive digital
television to provide Internet access and e-mail services has received
little promotion until recently, one in five consumers (21%) would
prefer to use the television for these services.
Commenting on the research findings, Malcolm Miller, chief
executive officer (CEO) of Pace Micro Technology, said, 'Although
critical to the initial growth of the digital television industry, increased
program choice is only part of a wider revolution that digital television
will bring to every home. With the set-top box, we are able to turn the
television from a passive entertainment service into one that provides
consumers with a range and quality of services in user-friendly
format, that PCs will find hard to match.
'For example, this year we are developing a set-top box, for
commercial launch in 2000, that incorporates a hard disk, similar to
that contained in PCs. This will enable us to offer digital broadcasters
services ranging from video recording to Internet access. However,
the revolution will not stop there. Our research and development team
is already looking at ways of making the digital set-top box the center
of the automated home. In the not too distance future, consumers
could be remotely controlling a number of household appliances and
services via the television.'
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