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To: Black-Scholes who wrote (43401)	7/28/1999 5:06:00 PM
From: John Rieman	Respond to of 50808

Interactive Television................................ biz.yahoo.com Monday July 26, 7:55 am Eastern Time Company Press Release SOURCE: Frost & Sullivan Frost & Sullivan: As Popularity Rises, Competition Thickens for The Interactive Television Market MOUNTAIN VIEW, Calif., July 26 /PRNewswire/ -- Interactive television has been something that many companies have spoken of but have just begun to deliver. Now the time has come for widespread adoption. As popularity grows and prices fall, this rapidly emerging market is now expected to become commonplace in households all across the U.S. and Canada. According to research by Frost & Sullivan (www.frost.com),the North American Interactive Television Service Market is expected to see explosive expansion totaling $5 billion by 2006. Currently , interactive television is blurring the distinction between home computers and television sets by allowing viewers to use an advanced digital set-top device to access a two-way interactive communications network. It changes the concept of TV broadcasting because viewers can have a direct and intimate relationship with advertisers and networks, as well as their favorite TV shows. ''As the general public becomes increasingly technology literate, pay-TV service providers are currently marketing comparable products targeting this new generation of customers who are technology-savvy,'' says Frost & Sullivan Telecommunications Industry Analyst Tess Peng. ''Web surfing and e-commerce have become second nature to this generation that looks forward to the next trend in technology, especially if it involves their televisions. Not only does this market cater to the technology-literate, but it is also consumer-driven and consumer-friendly.'' Every technology is constantly being updated, and interactive television is no exception to the rule. Frost & Sullivan believes that the interactive capability is likely to become mainstream by early next decade. Subscriber growth is expected to take off around 2001 with the launch of the OpenCable standard. By that time, digital cable will be deployed and cable service operators will be able to offer a wider selection of service applications. By the end of the forecast period, Frost & Sullivan expects that the number of subscribers for interactive television services will reach 20 million. Drivers behind this market include easy access to customized information, the emergence of enabling technology, the easy access to high-quality full-motion video images, falling equipment prices and delivering Internet-like functions on TV. On the other hand, market restraints include the lack of a user-friendly interface, the demand for interactive service is already filled in part by Internet services, the lack of customer awareness and education about interactive TV services, and the high cost of equipment. ''More than 70 percent of TV households in North America are connected to a cable network,'' says Frost & Sullivan Telecommunications Industry Analyst Sigrid Lo. ''These cable customers are widely expected to be the key potential customers for interactive TV. Unfortunately, established cable TV operators are generally slow to market new services, so the niche players are diligently working to attract subscribers with new value-added services.'' At the end of 1998, the Direct-to-Home (DTH) industry in North America seemed poised for a few years of steady growth. As a result, the key players in the market have been forming partnerships to take advantage of the growth. DirecTV, the leading U.S. DTH service provider, was finally within reach of hitting its vantage point after four years in business and decided to make a bid to acquire Primestar, its ailing rival. As a result of growing competition, DTH service operators are generally the first to add new premium or value-added services to their programming line-up. As a niche player to the pay-TV market, they are in the best position to exploit the latest technology and add interactive capability to new set-top boxes. Among the benefits of this expanding market is that cable customers will be able to access more channels with improved pictures and sound, and most importantly, a host of new interactive services. Customers will be able to order video-on-demand (VOD), send and receive e-mail, play interactive games and do many of the things executed by computers today. Frost & Sullivan presents Market Engineering Awards to companies that make a positive contribution to the telecommunications industry. The 1999 Market Engineering Competitive Strategy Award goes to DirecTV for its excellent understanding of competitive market position and for demonstrating the benefits of forming alliances to develop customer-focused products for an emerging market. The 1999 Market Engineering Marketing Strategy Award goes to Echostar for being the first to market as well as for its effective marketing strategies in the interactive TV industry. This telecommunications industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market. Frost & Sullivan is an international marketing, consulting and training company that monitors the telecommunications industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series of custom subscriptions including the Satellite Communications Custom Subscription (www.frost.com/online) and to support industry participants with customized consulting needs. Visit the Frost & Sullivan web site: frost.com. North American Interactive Television Service Markets Report: 5910-66 Date: July 1999 Price: $3,450