Steve Hausser just e-mailed me this article from the PR newswire. I didn't see it today, bit it looks like people are starting to get it: Strategy Analytics Study: Interactive TV Has Edge On Broadband PC > >Interactive Video is Next Internet Battleground > > BOSTON, April 7 /PRNewswire/ -- Internet operators are shaping up to deliver >video-based content via broadband networks, but broadcasters are ready to >respond by adding interactive services in the battle for consumer dollars. >According to a new report, broadcasters have the edge: 14% of households will >have interactive TV by 2002, compared to only 7% with broadband PC. > >These conclusions are described in a new Strategy Analytics report, >"Interactive Video Emerges - Broadband PC and Interactive TV prepare to do >battle" -- available to subscribers to their "Interactive Home" strategic >advisory service. > >A number of new and traditional players have staked their positions in this >new market within the past few months, including service providers (AOL, >@Home and Road Runner), network operators (Bell Atlantic, SBC, Deutsche >Telekom, US West, BT and NTL), broadcasters (DirecTV, Echostar, BSkyB and >BIB), and technology providers (GI, Scientific Atlanta, Philips, TiVo and >NCI). > >Video and interactivity are the catalysts bringing these players into the >same new marketplace: Internet providers offer enhanced content while >broadcasters add interactivity. > >The emerging broadband PC market is a result of increasing ownership of cable >and DSL modems. The analysts believe many consumers will not pay the current >high costs of broadband Internet, and that DSL and cable modems are still >unproven as far as full interactive video services are concerned. >Nevertheless, they forecast that, by 2002, broadband modems will be in 7% of >US households and 2% of European households. > >By this time, however, interactive TV services will be available in 14% of US >and 23% of European homes. Many of these services will arrive "by the back >door" as part of enhanced digital television services, allowing consumers to >access home shopping, video-on-demand and interactive information services >through their TV sets. > >"Interactive video will offer the Internet four great challenges," says David >Mercer, Strategy Analytics Interactive Home Service Director. "There is the >cost challenge, the usability challenge, the technology challenge and the TV >challenge. Internet operators may ultimately find that the challenge from >broadcasters is the greatest obstacle to success." > >Detailed market forecasts regarding European and US ownership are available >on request. > >Strategy Analytics provides strategic insights to IT technology firms around >the globe. > >SOURCE Strategy Analytics > >CO: Strategy Analytics > >ST: Massachusetts > > |