Interactive TV is back....................................
zdnet.com
MONDAY, MAY 10, 1999
It's Baa-aack. How Interactive TV Is Sneaking Into Your Living Room
Jesse Berst, Editorial Director
ZDNet AnchorDesk
In the mid '90s, fruitcakes such as Oracle's Larry Ellison and TCI's John Malone convinced the gullible press that interactive TV was just around the corner. We'd soon be shopping, banking and emailing from our TV sets, they told us.
Interactive television never materialized, of course, and the entire category was relegated to the Museum of Self-Serving Prattle, next to William Shatner's singing career and Dan Quayle's presidential aspirations.
But like a mummy from a tomb, interactive television has arisen again. While we've all been focused on PCs and the Web, the television is contending as the mainstream access method of the future.
Don't believe me? Consider these recent developments:
67 million users by 2003? The interactive TV market will serve less than 3 million people in the U.S. and Europe by the end of 1999. Market researcher Datamonitor predicts the number will skyrocket to 67 million by 2003 -- 25% of all users. Research firm IDC is more conservative, but still predicts 24 million by 2002.
Massive deals from AT&T and Microsoft. Ma Bell just became Ma Cable, thanks to back-to-back cable buys that give it roughly 60% of the market. AT&T will use that dominance to provide (among other things) interactive television running on Microsoft's Windows CE operating system.
Nearly 1 million WebTV users. Microsoft's WebTV division will have a million users before the end of the year. Right now it's a way to surf the Web on your TV. Watch for Microsoft to make it into a true interactive platform.
Satellite systems going interactive. Millions of people get TV pictures via a satellite dish. Now satellite providers are building interactive services for them. Click for more.
Emerging standards. Consortiums such as the Advanced Television Enhancement Forum and CableLabs are drafting specifications for next-generation interactive television devices.
Before I finish, let me deal with the tired old objection that "couch potatoes won't interact." In fact, they interact all night long via their remote controls. So how much do you suppose Pizza Hut would pay for an on-screen button that said "Click to Order Now!" every time one of its mouthwatering commercials came on?
Are you starting to get it?
I wish I had time to tell you more. There's so much going on right now. New products. Behind-the-scenes alliances. I'll have to settle for linking you to other stories and sites so you can see for yourself. Meanwhile, pitch in with your own ideas and opinions. Just hit the TalkBack link to send a comment, or jump over to my Berst Alerts forum, where a discussion is underway.
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