ACTV, Inc. Acquires Key Online Media Patent From
Wall Street Analyst Tom Wolzien
Combination of Wolzien Process with ACTV's
Existing HyperTV(TM) Patents Forms Basis of
E-Commerce Platform for TV/Internet Convergence
NEW YORK--(BUSINESS WIRE)--April 19, 1999--ACTV, Inc. (NASDAQ:IATV) today announced that it
has acquired a core online media patent from Wall Street media analyst Tom Wolzien regarding a proprietary
method for linking video and audio programming with the Internet.
The Wolzien Process, when combined with ACTV's existing proprietary HyperTV(TM) application and
patents, will enable ACTV to offer the first comprehensive software solution for the convergence of video and
audio with the Internet. In addition to providing a superior method for improving the convergence experience for
consumers, the combination of the Wolzien Process and HyperTV creates enormous e-commerce opportunities by
incorporating enhanced Internet content with audio or video.
The Wolzien Process provides the means for consumers to "pull" relevant content from the Internet to augment
television and radio programming and commercials. HyperTV enables content producers and advertisers to "push"
compelling Internet content to consumers -- all synchronized to a television program or other video or audio-based
program. Together, HyperTV and the Wolzien Process fill the gaps and create new synergies between television,
radio and online media. They use the vast reach of television and radio to deliver consumers to online services,
while using the ability of the Internet to provide powerful, new marketing and e-commerce capabilities to
complement video and audio programming.
William C. Samuels, chairman and CEO of ACTV, Inc., said: "When we combine HyperTV with the Wolzien
Process, the potential is vast, ranging from electronic commerce and entertainment, to education and public service.
Like Tom, we have had a consistent vision for many years which is now coming to fruition. We're thrilled to have
acquired the patent from someone who has such strong insight into our industry and an expert understanding of this
tremendous opportunity."
Convergent media environments are already generating tremendous consumer demand and quickly emerging
as a lucrative new arena for e-commerce. According to a January survey by Showtime Networks, nearly one in five
U.S. households exhibit convergent behavior, simultaneously viewing television and accessing the Internet. This
represents more than 18 million convergent households in the U.S., an increase of more than 80% since December
1997. International Data Corporation (IDC) estimates that by the year 2000, business-to-consumer e-commerce
revenues will reach $50 billion. IDC also reports that business-to-business e-commerce revenues will exceed $250
billion.
In addition to the HyperTV convergence applications available today, the acquisition of the Wolzien patent
fortifies ACTV's position for the rollout of next-generation digital set-top boxes, cable modems, and other
consumer devices made possible by advances in digital and broadband technology.
ABOUT THE WOLZIEN PROCESS & HYPERTV
With HyperTV, for example, a cable music network can allow viewers to log onto its Web site and "push"
synchronized content to them that directly corresponds to the music video they are watching. The content can
include lyrics to the current song, bios of featured band members, interactive trivia questions about the artist, or
opportunities to purchase concert merchandise. During a break, a car commercial can be enhanced by delivering
information from the company's Web site or the site of a local dealership where users receive more information
about the car. With the addition of the Wolzien Process, consumers can "pull" -- directly from a link embedded in
the TV program or commercial -- related content from the Internet that enables them to purchase merchandise,
arrange test drives of automobiles, or find out additional information about a product or service.
"While television and radio do great jobs of delivering mass audiences, the Internet provides consumers with
the additional information, interactivity and sense of community they desire," said Craig Ullman, an inventor of
HyperTV and ACTV's Keeper of the Magic. "The combined experience of television and/or radio with the Internet
is much more powerful than either is alone."
The Wolzien Process, U.S. Patent No. 5,761,606, covers a proprietary process for allowing consumers to
"pull" information from the Internet that is synchronized to a specific video program, audio program, commercial
message or news story delivered via broadcast television, cable, satellite or pre-recorded media. The Wolzien
Process was the subject of a March 15, 1999 story by TheStreet.com.
HyperTV enables content producers, such as television programmers and advertisers, to -- simultaneously,
directly and in real time -- "push" to consumers compelling Internet content that directly corresponds to a television
program or other video or audio-based program. Using ACTV's proprietary and proven methods, HyperTV
permits the simultaneous and synchronized delivery of video, audio and Web URLs (Uniform Resource Locators)
to users. HyperTV also has a database capability that captures valuable permission-based marketing information,
such as consumer demographics and preferences.
Today, HyperTV users can watch video on a standard television set while viewing synchronized web content
and interacting with other users via their computer. Or, they can receive streamed audio or video as well as
synchronized web content on their computer. As digital cable and broadband technology proliferate, users will be
able to enjoy a HyperTV experience with video, audio, synchronized web content and chat simultaneously delivered
to a TV set or a personal computer.
U.S. Patent No. 5,761,606, was granted to Wolzien last June, after being filed more than three years ago. The
patent was purchased via ACTV subsidiary HyperTV Networks, Inc., and will be held by a newly formed venture
called Media Online Services, which will be owned and operated by HyperTV Networks, Inc. The venture will
work in coordination with ACTV's subsidiaries (ACTV Entertainment and HyperTV Networks, Inc.) to exploit the
company's leading-edge technology and programming capabilities for digital television, broadband, and
TV-Internet convergence. The acquisition of the patent from Wolzien was for an undisclosed amount of stock,
cash, and other consideration.
ATTENTION TO SPECIAL POPULATIONS
In addition to broad applications in entertainment, education and e-commerce, ACTV and Wolzien both see
major benefits in this new technology for special groups within the population. Non-profit public health
organizations will be able to receive licenses to use the technology without charge in their television programming
and public service announcements. For example, television announcements regarding AIDS, alcoholism, or mental
illness could link a viewer directly to a web site where the person could get immediate assistance or information at
the push of one button on the television remote.
The technology can also benefit disabled persons in the same way, if they can push the button to link the
television with the web. However, many consumer electronic devices are not accessible to those with major
disabilities. Massively disabled persons depend on special adaptive controls that convert the smallest of movements
or air pressure changes into control data. Consumer electronics devices often don't have a way to accept this data.
In a small attempt to call attention to this trend, manufacturers of hardware that incorporates the Wolzien Process
will be encouraged to make their equipment accessible to the disabled through license incentives.
ABOUT ACTV, INC.
New York-based ACTV, Inc. is a leader in interactive digital television and a pioneer in TV-Internet
convergence. Whether it's for the rapidly emerging digital television platform, the Internet or a convergent
TV-Internet experience, ACTV uses its patented software applications -- HyperTV(TM) and "Individualized
Television" -- to dramatically enhance any television, video or audio program. ACTV is committed to improving the
television and Internet experience for consumers by enabling the creation of more compelling content, while
allowing programmers, advertisers and others to establish valuable one-to-one relationships with consumers.
ACTV has relationships with many of the dominant players in the Internet, television and digital technology
fields, including: Liberty Media Group (NYSE:LMG.A, LMG.B); AT&T Broadband & Internet Services (formerly
Tele-Communications, Inc. - NYSE:T); General Instrument Corporation (NYSE:GIC); Scientific-Atlanta, Inc.
(NYSE:SFA); Sun Microsystems (NASDAQ:SUNW); FOX Sports Net; TCI Music, Inc. (NASDAQ:TUNE,
TUNEP); TV Guide Networks, Inc. (NASDAQ:TVGIA); SkyConnect, Inc.; Pioneer Digital Technologies, Inc.;
Cablevision's Rainbow Sports; and The Sarnoff Corporation. In September 1998, ACTV Entertainment and
Liberty Media formed a joint venture, LMC/IATV Events, LLC. ACTV Entertainment and HyperTV Networks,
Inc. are subsidiaries of ACTV, Inc.
For more information, visit ACTV's Web site at actv.com.
Disclaimer: This news release contains forward-looking statements as defined by the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals,
strategies, future events or performance, and underlying assumptions and other statements which are other than
statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to,
product and service demand and acceptance, changes in technology, economic conditions, the impact of competition
and pricing, government regulation, and other risks defined in this document and in statements filed from time to
time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral,
and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any
other cautionary statements which may accompany the forward-looking statements. In addition, the company
disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date
hereof.
NOTE TO EDITORS:
ACTV will hold a conference call today at 11:30 a.m. ET regarding today's announcement and other material
events. Chairman and CEO William C. Samuels and Chief Creative Officer Craig Ullman will provide opening
remarks, followed by a brief question and answer session. To participate, dial 1-888-428-4473 and specify "ACTV
conference call."
--30--jb/ny*
CONTACT: Bratskeir & Company, New York
Mike Rosen (mrosen@bratskeir.com)
David Rosenberg (drosenberg@bratskeir.com)
212/679-2233 |
