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Shonstrom's favorite interactive TV stock is ACTV, which he rates a "strong buy."
The company has distinguished itself by rolling out an array of interactive TV services and features and, therefore, is likely to see a surge in revenue sooner than the others, Shonstrom says. His revenue projections are somewhat "subjective" at this early stage, he cautions. But he estimates that ACTV will report $2.8 million in revenue for 1999, $25 million this year and $100 million in 2001.
One service that ACTV already has launched is called HyperTV, which provides Web site content synchronized with programming on pay-per-view cable TV channels. It may seem far-fetched that TV viewers would want to surf the Web in order to do such things as call up a "secret profile" of Dr. Evil while watching "Austin Powers: The Spy Who Shagged Me." But the service apparently strikes a chord with many.
Mike Rosen, a spokesman for ACTV, says the HyperTV supplement to the Austin Powers movie showing this month should generate an additional 200,000 to 300,000 online purchases of Austin Powers merchandise.
In the first half of this year, ACTV will be rolling out several other services, including "individualized TV." Offered in conjunction with the Fox Sports channel, it will allow sports fans to select camera angles for viewing a game. Once the next generation of digital set-top box arrives, these ACTV features all will be offered on one TV screen, replacing the "two-screen" solution allowed by the current level of technology.
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