2001 outlook ..ACTV and iTV industry
------------------------------------------
fredhager.com
Not sure if Eric Jhonsa is the author/co-author of this article , but he went to work for Fred Hager Co. after leaving NYU where he wrote about ACTV and many other Next Generation Tech companies.
----------------------------------------------------------
2001 Outlook
In last week's column, I mentioned how, as advanced, next-generation digital set-top boxes begin to be deployed next year, cable TV service providers will be able to deliver their subscribers a plethora of new, interactive services to their TV sets, and in the process potentially lead to significant amounts of additional network traffic being generated for the world's internet backbones, thus benefiting infrastructure providers. However, just as it was necessary to understand the applications that would allow PC internet usage to skyrocket in order to appreciate the value of the infrastructure providers, likewise, a close look should be taken at the types of interactive services that are set to be offered, and the companies developing them.
As of today, perhaps the most prevalent interactive application currently available via the television is the interactive program guide (IPG), concept developed by interactive television pioneer Gemstar. Unlike conventional guides, which merely scroll down the screen of a TV channel, an IPG allows users to actively browse through its contents, allowing them to pull up additional information on various programs, and ''jump'' to these programs with the click of a button. Studies have shown that the average IPG user utilizes his/her guide roughly six times during every hour of TV usage. Since the data provided via most IPGs that are currently used comes from an old, analog transmission technology known as vertical blanking interval (VMI), these guides are currently incapable of providing advanced, two-way interactive services. However, more advanced versions, delivered over digital television streams, two-way paging services, and internet modems, promise to change all of this, allowing the guides to be transformed into full-fledged internet portals capable of providing amenities such as e-mail, news reports, stock quotes, and e-commerce services. Considering that, unlike a PC, a digital set-top box containing such a program guide loads almost instantaneously, it's quite possible that the IPG will become the internet portal of choice in many households.
Of all the concepts related to the ''convergence'' of PCs and TVs that have been floated around over the past few years, perhaps none has lit the imaginations of futurists and investors as that of interactive TV. That is, the direct integration of interactive content to TV programming. The possibilities here are endless; a TV viewer watching a basketball game chose to call up a 3-minute highlight reel of one of the players in the game at any time during the duration of the game. Someone watching a movie could pull up trivia and reviews related to the film on demand. An ad for a video game could provide a link that allows a viewer to purchase the game. Naturally, the television industry has been highly intrigued by all the advertising and e-commerce opportunities that such applications inevitably open.
However, up until now, all of this mostly been a pipe dream. While one interactive TV developer, Wink, has been offering interactive services via analog set-top boxes utilizing VBI, the quality of the service has been poor at best, and thus it's seen very limited uptake. Since the offering of high-quality versions such services requires TV viewers to possess digital set-top boxes with advanced 2D/3D graphics subsystems, very few users have been capable of receiving them. As a result, major TV networks such as CBS, NBC, etc. have been unwilling to produce interactive content in any significant amount. This has changed somewhat with the release of interactive TV services in conjunction with Microsoft's WebTV and AOL's AOLTV offerings, as each service is capable of providing TV networks with a significant subscriber base to which they can offer interactive content. However, WebTV and AOLTV, in their current forms, are only stop-gap solutions, as each requires data to be sent via a 56K modem. Aside from the inconveniences this causes with regards to tying up a phone line, such a setup also prevents the interactive TV services that are provided to be fully integrated with a given TV show, something that can only be done if the data is sent via digital TV streams handled by set-top boxes with advanced graphics capabilities. As these boxes begin to be deployed in 2001, greater opportunities should appear for OpenTV and ACTV, the leading providers of interactive TV platforms based on transmission over digital television streams. Here, OpenTV's jumped out to an early lead, due to a number of deals it's signed with European cable operators who have been more aggressive than their American counterparts in rolling out advanced set-top boxes. However, thanks to its extensive intellectual property portfolio, which includes patents on concepts such as bookmarking interactive content, ''pulling'' internet content via a link within a program, personalizing the content that's sent to individual users, and manipulating multiple video streams that are sent for a given program, ACTV appears to be capable of offering a more robust platform going forward.
Lastly, there's the possibilities related to direct internet usage over a TV set. Here, the benefits of such a service to potential subscribers are as follows:
1. A large percentage of PC internet users currently admit to watching TV and using the internet at the same time. Being able to do both simultaneously via the same screen would offer significant benefits in terms of convenience.
2. Internet access could be offered via a convenient, user-friendly platform to many individuals who currently don't own or use a PC.
3. Since the average TV screen's far larger than the average PC screen, the potential for streaming video applications is significant.
Skeptics might argue that the relatively limited popularity of WebTV stands as a testament to the limited demand that exists for such a service. Here, it should be noted that, when compared to a TV internet service that utilizes a cable modem embedded into a set-top box, WebTV has a number of drawbacks. First, since it requires a PC internet user to purchase an internet subscription completely independent of his/her PC subscription, it's difficult for such an individual to justify the costs related to the service. Meanwhile, if a set-top box containing a cable modem's utilized, a subscriber could simultaneously be offered TV and PC internet access via a bundled package from a cable operator. Another drawback of WebTV is that it requires the purchase of proprietary hardware from a 3rd party, hardware that generally costs $100 or more. Considering how technology-averse those who don't own PCs often are, these people are generally unwilling to make such an up-front payment. On the other hand, the cost of a digital set-top box with a built in cable modem is generally covered by a cable operator, and thus the up-front cost of acquiring a device that allows for internet access is close to nothing. Furthermore, it's possible that cable operators will offer free trials for TV internet usage, thus completely reducing any initial obligation on the part of those interested in internet access over TVs. Finally, since it works via the use of 56K modems, WebTV's very limited in terms of the multimedia functionality that it can offer. A cable modem, generally operating at speeds of 500 kbps or higher, definitely isn't.
Like the coming revolution in wireless data, what's particularly interesting about the long-term potential of PC/TV/internet convergence is how the sheer number of users it could affect easily dwarfs that of the PC revolution. Currently, there's over 1 billion households around the world that own a television set, with many households in developed countries possessing more than one set. In the United States, the average person watches six hours of TV/day (if that number frightens you, you're not alone...). While daily TV usage is somewhat lower in most foreign countries, the amount of time spent by an average TV user around the world still easily outdistances the amount of time spent by the average PC user in front of a computer. With a diverse array of interactive services soon set to be only a remote click away from hundreds of millions of these TV users, to state that the potential business opportunities (both in terms services and infrastructure equipment) will be huge would definitely be an understatement.
Customer Service:
Phone: 203-319-0114
Email: Click here
Hours :
Monday - Friday
9:00 a.m. to 5:00 p.m
Eastern Standard Time
--------------------------------------------------------------------------------
<< Previous Message
<< Previous Message
Subject: 2001 outlook ..ACTV and iTV industry
From iatv_longter
PostID 78681 On Monday, March 26, 2001 (EST) at 7:20:41 PM
--------------------------------------------------------------------------------
fredhager.com
Not sure if Eric Jhonsa is the author/co-author of this article , but he went to work for Fred Hager Co. after leaving NYU where he wrote about ACTV and many other Next Generation Tech companies.
----------------------------------------------------------
2001 Outlook
In last week's column, I mentioned how, as advanced, next-generation digital set-top boxes begin to be deployed next year, cable TV service providers will be able to deliver their subscribers a plethora of new, interactive services to their TV sets, and in the process potentially lead to significant amounts of additional network traffic being generated for the world's internet backbones, thus benefiting infrastructure providers. However, just as it was necessary to understand the applications that would allow PC internet usage to skyrocket in order to appreciate the value of the infrastructure providers, likewise, a close look should be taken at the types of interactive services that are set to be offered, and the companies developing them.
As of today, perhaps the most prevalent interactive application currently available via the television is the interactive program guide (IPG), concept developed by interactive television pioneer Gemstar. Unlike conventional guides, which merely scroll down the screen of a TV channel, an IPG allows users to actively browse through its contents, allowing them to pull up additional information on various programs, and ''jump'' to these programs with the click of a button. Studies have shown that the average IPG user utilizes his/her guide roughly six times during every hour of TV usage. Since the data provided via most IPGs that are currently used comes from an old, analog transmission technology known as vertical blanking interval (VMI), these guides are currently incapable of providing advanced, two-way interactive services. However, more advanced versions, delivered over digital television streams, two-way paging services, and internet modems, promise to change all of this, allowing the guides to be transformed into full-fledged internet portals capable of providing amenities such as e-mail, news reports, stock quotes, and e-commerce services. Considering that, unlike a PC, a digital set-top box containing such a program guide loads almost instantaneously, it's quite possible that the IPG will become the internet portal of choice in many households.
Of all the concepts related to the ''convergence'' of PCs and TVs that have been floated around over the past few years, perhaps none has lit the imaginations of futurists and investors as that of interactive TV. That is, the direct integration of interactive content to TV programming. The possibilities here are endless; a TV viewer watching a basketball game chose to call up a 3-minute highlight reel of one of the players in the game at any time during the duration of the game. Someone watching a movie could pull up trivia and reviews related to the film on demand. An ad for a video game could provide a link that allows a viewer to purchase the game. Naturally, the television industry has been highly intrigued by all the advertising and e-commerce opportunities that such applications inevitably open.
However, up until now, all of this mostly been a pipe dream. While one interactive TV developer, Wink, has been offering interactive services via analog set-top boxes utilizing VBI, the quality of the service has been poor at best, and thus it's seen very limited uptake. Since the offering of high-quality versions such services requires TV viewers to possess digital set-top boxes with advanced 2D/3D graphics subsystems, very few users have been capable of receiving them. As a result, major TV networks such as CBS, NBC, etc. have been unwilling to produce interactive content in any significant amount. This has changed somewhat with the release of interactive TV services in conjunction with Microsoft's WebTV and AOL's AOLTV offerings, as each service is capable of providing TV networks with a significant subscriber base to which they can offer interactive content. However, WebTV and AOLTV, in their current forms, are only stop-gap solutions, as each requires data to be sent via a 56K modem. Aside from the inconveniences this causes with regards to tying up a phone line, such a setup also prevents the interactive TV services that are provided to be fully integrated with a given TV show, something that can only be done if the data is sent via digital TV streams handled by set-top boxes with advanced graphics capabilities. As these boxes begin to be deployed in 2001, greater opportunities should appear for OpenTV and ACTV, the leading providers of interactive TV platforms based on transmission over digital television streams. Here, OpenTV's jumped out to an early lead, due to a number of deals it's signed with European cable operators who have been more aggressive than their American counterparts in rolling out advanced set-top boxes. However, thanks to its extensive intellectual property portfolio, which includes patents on concepts such as bookmarking interactive content, ''pulling'' internet content via a link within a program, personalizing the content that's sent to individual users, and manipulating multiple video streams that are sent for a given program, ACTV appears to be capable of offering a more robust platform going forward.
Lastly, there's the possibilities related to direct internet usage over a TV set. Here, the benefits of such a service to potential subscribers are as follows:
1. A large percentage of PC internet users currently admit to watching TV and using the internet at the same time. Being able to do both simultaneously via the same screen would offer significant benefits in terms of convenience.
2. Internet access could be offered via a convenient, user-friendly platform to many individuals who currently don't own or use a PC.
3. Since the average TV screen's far larger than the average PC screen, the potential for streaming video applications is significant.
Skeptics might argue that the relatively limited popularity of WebTV stands as a testament to the limited demand that exists for such a service. Here, it should be noted that, when compared to a TV internet service that utilizes a cable modem embedded into a set-top box, WebTV has a number of drawbacks. First, since it requires a PC internet user to purchase an internet subscription completely independent of his/her PC subscription, it's difficult for such an individual to justify the costs related to the service. Meanwhile, if a set-top box containing a cable modem's utilized, a subscriber could simultaneously be offered TV and PC internet access via a bundled package from a cable operator. Another drawback of WebTV is that it requires the purchase of proprietary hardware from a 3rd party, hardware that generally costs $100 or more. Considering how technology-averse those who don't own PCs often are, these people are generally unwilling to make such an up-front payment. On the other hand, the cost of a digital set-top box with a built in cable modem is generally covered by a cable operator, and thus the up-front cost of acquiring a device that allows for internet access is close to nothing. Furthermore, it's possible that cable operators will offer free trials for TV internet usage, thus completely reducing any initial obligation on the part of those interested in internet access over TVs. Finally, since it works via the use of 56K modems, WebTV's very limited in terms of the multimedia functionality that it can offer. A cable modem, generally operating at speeds of 500 kbps or higher, definitely isn't.
Like the coming revolution in wireless data, what's particularly interesting about the long-term potential of PC/TV/internet convergence is how the sheer number of users it could affect easily dwarfs that of the PC revolution. Currently, there's over 1 billion households around the world that own a television set, with many households in developed countries possessing more than one set. In the United States, the average person watches six hours of TV/day (if that number frightens you, you're not alone...). While daily TV usage is somewhat lower in most foreign countries, the amount of time spent by an average TV user around the world still easily outdistances the amount of time spent by the average PC user in front of a computer. With a diverse array of interactive services soon set to be only a remote click away from hundreds of millions of these TV users, to state that the potential business opportunities (both in terms services and infrastructure equipment) will be huge would definitely be an understatement.
Customer Service:
Phone: 203-319-0114
Email: Click here
Hours :
Monday - Friday
9:00 a.m. to 5:00 p.m
Eastern Standard Time
--------------------------------------------------------------------------------
<< Previous Message
2001 outlook ..ACTV and iTV industry
From iatv_longter
PostID 78681 On Monday, March 26, 2001 (EST) at 7:20:41 PM
--------------------------------------------------------------------------------
fredhager.com
Not sure if Eric Jhonsa is the author/co-author of this article , but he went to work for Fred Hager Co. after leaving NYU where he wrote about ACTV and many other Next Generation Tech companies.
----------------------------------------------------------
2001 Outlook
In last week's column, I mentioned how, as advanced, next-generation digital set-top boxes begin to be deployed next year, cable TV service providers will be able to deliver their subscribers a plethora of new, interactive services to their TV sets, and in the process potentially lead to significant amounts of additional network traffic being generated for the world's internet backbones, thus benefiting infrastructure providers. However, just as it was necessary to understand the applications that would allow PC internet usage to skyrocket in order to appreciate the value of the infrastructure providers, likewise, a close look should be taken at the types of interactive services that are set to be offered, and the companies developing them.
As of today, perhaps the most prevalent interactive application currently available via the television is the interactive program guide (IPG), concept developed by interactive television pioneer Gemstar. Unlike conventional guides, which merely scroll down the screen of a TV channel, an IPG allows users to actively browse through its contents, allowing them to pull up additional information on various programs, and ''jump'' to these programs with the click of a button. Studies have shown that the average IPG user utilizes his/her guide roughly six times during every hour of TV usage. Since the data provided via most IPGs that are currently used comes from an old, analog transmission technology known as vertical blanking interval (VMI), these guides are currently incapable of providing advanced, two-way interactive services. However, more advanced versions, delivered over digital television streams, two-way paging services, and internet modems, promise to change all of this, allowing the guides to be transformed into full-fledged internet portals capable of providing amenities such as e-mail, news reports, stock quotes, and e-commerce services. Considering that, unlike a PC, a digital set-top box containing such a program guide loads almost instantaneously, it's quite possible that the IPG will become the internet portal of choice in many households.
Of all the concepts related to the ''convergence'' of PCs and TVs that have been floated around over the past few years, perhaps none has lit the imaginations of futurists and investors as that of interactive TV. That is, the direct integration of interactive content to TV programming. The possibilities here are endless; a TV viewer watching a basketball game chose to call up a 3-minute highlight reel of one of the players in the game at any time during the duration of the game. Someone watching a movie could pull up trivia and reviews related to the film on demand. An ad for a video game could provide a link that allows a viewer to purchase the game. Naturally, the television industry has been highly intrigued by all the advertising and e-commerce opportunities that such applications inevitably open.
However, up until now, all of this mostly been a pipe dream. While one interactive TV developer, Wink, has been offering interactive services via analog set-top boxes utilizing VBI, the quality of the service has been poor at best, and thus it's seen very limited uptake. Since the offering of high-quality versions such services requires TV viewers to possess digital set-top boxes with advanced 2D/3D graphics subsystems, very few users have been capable of receiving them. As a result, major TV networks such as CBS, NBC, etc. have been unwilling to produce interactive content in any significant amount. This has changed somewhat with the release of interactive TV services in conjunction with Microsoft's WebTV and AOL's AOLTV offerings, as each service is capable of providing TV networks with a significant subscriber base to which they can offer interactive content. However, WebTV and AOLTV, in their current forms, are only stop-gap solutions, as each requires data to be sent via a 56K modem. Aside from the inconveniences this causes with regards to tying up a phone line, such a setup also prevents the interactive TV services that are provided to be fully integrated with a given TV show, something that can only be done if the data is sent via digital TV streams handled by set-top boxes with advanced graphics capabilities. As these boxes begin to be deployed in 2001, greater opportunities should appear for OpenTV and ACTV, the leading providers of interactive TV platforms based on transmission over digital television streams. Here, OpenTV's jumped out to an early lead, due to a number of deals it's signed with European cable operators who have been more aggressive than their American counterparts in rolling out advanced set-top boxes. However, thanks to its extensive intellectual property portfolio, which includes patents on concepts such as bookmarking interactive content, ''pulling'' internet content via a link within a program, personalizing the content that's sent to individual users, and manipulating multiple video streams that are sent for a given program, ACTV appears to be capable of offering a more robust platform going forward.
Lastly, there's the possibilities related to direct internet usage over a TV set. Here, the benefits of such a service to potential subscribers are as follows:
1. A large percentage of PC internet users currently admit to watching TV and using the internet at the same time. Being able to do both simultaneously via the same screen would offer significant benefits in terms of convenience.
2. Internet access could be offered via a convenient, user-friendly platform to many individuals who currently don't own or use a PC.
3. Since the average TV screen's far larger than the average PC screen, the potential for streaming video applications is significant.
Skeptics might argue that the relatively limited popularity of WebTV stands as a testament to the limited demand that exists for such a service. Here, it should be noted that, when compared to a TV internet service that utilizes a cable modem embedded into a set-top box, WebTV has a number of drawbacks. First, since it requires a PC internet user to purchase an internet subscription completely independent of his/her PC subscription, it's difficult for such an individual to justify the costs related to the service. Meanwhile, if a set-top box containing a cable modem's utilized, a subscriber could simultaneously be offered TV and PC internet access via a bundled package from a cable operator. Another drawback of WebTV is that it requires the purchase of proprietary hardware from a 3rd party, hardware that generally costs $100 or more. Considering how technology-averse those who don't own PCs often are, these people are generally unwilling to make such an up-front payment. On the other hand, the cost of a digital set-top box with a built in cable modem is generally covered by a cable operator, and thus the up-front cost of acquiring a device that allows for internet access is close to nothing. Furthermore, it's possible that cable operators will offer free trials for TV internet usage, thus completely reducing any initial obligation on the part of those interested in internet access over TVs. Finally, since it works via the use of 56K modems, WebTV's very limited in terms of the multimedia functionality that it can offer. A cable modem, generally operating at speeds of 500 kbps or higher, definitely isn't.
Like the coming revolution in wireless data, what's particularly interesting about the long-term potential of PC/TV/internet convergence is how the sheer number of users it could affect easily dwarfs that of the PC revolution. Currently, there's over 1 billion households around the world that own a television set, with many households in developed countries possessing more than one set. In the United States, the average person watches six hours of TV/day (if that number frightens you, you're not alone...). While daily TV usage is somewhat lower in most foreign countries, the amount of time spent by an average TV user around the world still easily outdistances the amount of time spent by the average PC user in front of a computer. With a diverse array of interactive services soon set to be only a remote click away from hundreds of millions of these TV users, to state that the potential business opportunities (both in terms services and infrastructure equipment) will be huge would definitely be an understatement.
Customer Service:
Phone: 203-319-0114
Email: Click here
Hours :
Monday - Friday
9:00 a.m. to 5:00 p.m
Eastern Standard Time |
