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ACTV aims at European market with interactive TV
Last week ACTV opened its first subsidiary business in Baarn, The Netherlands. Their goal is to gain solid ground in the European TV and advertising market. ACTV aims at interactive and Hyper TV, developments of which are more advanced in the U.S. The first regional sports channel will start utilizing ACTV's technical features.
Interactive TV allows its viewers certain control features. For instance changing cameras, using remote control, zooming in or out, and replay. Greg Lovett anticipates therefore ample possibilities for advertisers: "Focus commercials on your target group. If you don't have children, there is no need to look at an advertisement for diapers".
Because of technical requirements for interactive TV (i.e. the need for decoders), ACTV will initially concentrate in Europe on HyperTV. This offers a package of web-sites, concurrent with an ongoing TV program. For instance, people viewing Madonna can now make real time requests for additional information via Internet, but may also order CD's or concert tickets.
In December 1999, Fox Sports Net, with the use of ACTV, will provide the first interactive broadcasts in Texas. ACTV has further agreements with The Box Music Network and with e-school for the provision of HyperTV packages. Initial experiments have already been carried out. In Europe, MTV and Teleac (note: Dutch e-school) have shown interest in HyperTV.
Webwatch comment:
The technical capabilities of ACTV look impressive, and there seems to be sufficient interest from large agencies in the U.S. However it remains to be seen whether ACTV will be successful with interactive TV in Europe. To embed this feature into a cable network requires quite some investments. In addition it will be hard to get the consumers in smaller countries, with a limited number of TV channels, warmed up for this idea. This concern is not felt at the Amsterdam Exchange Market (AEX). Many financial analysts are positive about ACTV shares.
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