Article under TCOMA....
How far behind could an announcement for ACTV be?
Tuesday July 28, 9:40 am Eastern Time
Company Press Release
SOURCE: Source Media
Insight Communications to Deploy Source Media's Next Generation
Interactive Channel Service in Upcoming Digital Cable TV Service
Launch
Interactive Channel to be First and Only Service to Portal Local Digital Interactive Content and
Internet-Sourced Programming for Digital Cable Television
DALLAS, July 28 /PRNewswire/ -- Insight Communications has signed an MSO-wide agreement with Source Media's
(Nasdaq: SRCM - news) Interactive Channel, and plans to launch a new Interactive Channel service that provides a local
content package which will be a portal for local interactive and Internet-sourced content before the end of 1998. The
Interactive Channel, a developer, and packager of local content in digital cable systems, also provides localized links to guides,
addressable advertising, interactive multimedia as well as rapid access to the Internet itself for display on TV. Insight plans on
using General Instrument's DCT family of digital set-tops beginning with the first generation DCT1000 already deployed in
some Insight markets.
''Insight Communications is innovative in deploying digital service widely in their markets both with the @ HOME cable
modem service for the PC and an interactive digital television service including Interactive Channel,'' said Tom Oliver,
Chairman & CEO of the Interactive Channel. ''By taking full advantage of digital technology Insight is providing its customers
with benefits such as Internet access, email, and interactive programming guides. For digital cable to be perceived as really
digital, it must be on-demand, interactive and it must incorporate Internet content. The cable customer must feel that he's
getting added value beyond just more TV channels. Alongside the Internet, local content is truly incremental programming
which the consumer values. By recognizing the significance of localizing multimedia content via the Interactive Channel's
programming, Insight clearly understands how to utilize the digital technical platform to build new and valuable services for their
customers. This will enable Insight to effectively compete in today's marketplace by adding value and building customer loyalty,
while creating new revenue streams.''
''One of the hallmarks of Insight Communications' relationship with its subscribers has been our strong local market
orientation,'' noted Kim Kelly, Insight Communications' executive vice president and COO. ''As an active community
member, Insight is dedicated to providing heightened awareness and information about community events, issues and local
activities. Interactive Channel offers a complete local information source for our digital subscribers in a fast, easy to use,
interactive television format. The content is all locally originated, so it's current and relevant to the specific communities we
serve. Interactive Channel also sources content from the Internet and Web sites, operating completely in digital for video,
audio, graphics and data. The localization which the Interactive Channel provides is also a revenue generator, selling local
advertisers and sponsors avails on the service.
The Interactive Channel digital application will be deployed in Insight Communications' new digital cable service tier, serving as
the electronic ''on-demand'' navigator for a wide variety of digital programming options such as digital audio channels, more
pay-per-view channels, an electronic program guide, and additional 'plexes' of branded pay TV services.
''Subscribers will be able to navigate to all these areas of the Insight system via an Insight digital service home page which will
easily guide the viewer through the system,'' Oliver continued. ''Not only is this extremely practical for the user and the
operator, but it reinforces the results of the Digital Applications Consortium (DAC) research presented at CTAM's March
meeting in Los Angeles.''
The Digital Applications Consortium which includes Source Media's Interactive Channel, General Instrument Corporation
(NYSE: GIC - news), TCI's HITS (Nasdaq: TCOMA - news and TCOMB - news) and Scientific Atlanta's (NYSE: SFA -
news) PowerTV, recently funded an extensive research project conducted by BHC Consulting of Oakland, California. The
results of that study indicated that a Core Content Package of 8-12 bundled interactive services such as Internet access,
multimedia games and content, on-demand sports, news and weather -- all elements which form the core of the Interactive
Channel's programming menu -- will be essential to generating widespread customer demand for the new family of digital
television services. ''The numbers are compelling,'' Oliver added. ''When offered a core package of bundled digital services
as opposed to a single digital offering -- Internet access over the TV included -- consumer intent to purchase skyrocketed
over 700 percent. The inclusion of an electronic navigator and on-demand interactivity appear to have great appeal for the
consumer.''
Commenting on Insight's impending deployment of the Interactive Channel via General Instrument digital set-top terminals,
Dick Smith, GIs Executive Vice President noted; ''We're pleased that the Interactive Channel, an original member of our
Horizon Developers group, is building support among the leading MSOs and has forged this MSO-wide agreement with
Insight Communications. We are pleased that Insight intends to utilize the Interactive Channel's versatile content applications
with the entire family of DCT digital set-tops, from the DCT-1000 on up through next year's anticipated DCT-5000. GI digital
set-top terminals, provide an easy migration to digital content within cable systems as upgrades occur, and immediate
availability of digital content to new systems as they come on line.''
Insight Communications, one of the fastest-growing cable companies, is a closely held partnership that will own or operate
cable systems serving 525,000 subscribers when all of its previously announced transactions close. The company began 1997
with 170,000 subscribers when it launched a two-tiered strategy to focus its operations on large clusters like the Indiana group
and on market-dominant cable systems in second-and third-tier television markets. As a result of the latter strategy, Insight will
close its purchase of the 66,000-subscriber Rockford, Ill., cable system from Cablevision Systems in January. In addition to
his membership on the Board of the National Cable Television Association (NCTA), Michael S. Willner, Insight
Communications' president and CEO also serves on the Source Board of Directors.
Source Media is a leader in the development and introduction of new interactive technologies and programming. Source
Media's IT Network provides new media content and advertising services via newspapers and Yellow Pages directories to
over 150 million households and businesses nationwide. The Interactive Channel is an interactive cable TV programming
service designed for today's digital cable TV programming tiers, and has carriage agreements with Century Communications
Corporation [Nasdaq:CTYA - news], Marcus Cable Company L.P. and Cablevision Systems Corporation [AMEX:CVC -
news]. VirtualModem(TM) develops and markets the intellectual property, software, and patents behind the Company's
interactive cable TV technology, which includes Internet on TV.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements that are not historical facts,
including statements about confidence and strategies and plans and expectations about new and existing products, services,
technologies and opportunities, industry growth, demand, demand and acceptance of new and existing products, and returns
on investments in products and markets are forward-looking statements that involve risks and uncertainties that could
significantly impact Source Media. These include but are not limited to the projected and historical losses of Source Media,
lack of capital resources, development nature of its business, uncertainty of subscriber acceptance for the Interactive Channel,
possible unavailability of equipment, potential acquisition, potential profits of the telephone division and other factors discussed
from time to time in Source Media's Securities and Exchange Commission filings.
SOURCE: Source Media |
