To: steve harmon - analyst who wrote (2347 ) 8/4/1999 11:23:00 AM From: art slott Read Replies (1) | Respond to of 4337
FORRESTER-RESEARCH) Interactive Television Will Generate $20 Billion in Revenues by 2004, According to Forrester Business/Technology Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 4, 1999--Television networks, cable and satellite operators, producers, and advertisers agree -- interactive television (ITV) is inevitable. ITV will be the next wave of the interactive commerce gold rush, according to a new Report from Forrester Research, Inc. (Nasdaq:FORR) that estimates that interactive TV will generate $11 billion in advertising, $7 billion in commerce, and $2 billion in subscription revenues by 2004. The prime beneficiary of these cash flows will be the early movers -- cable and satellite operators. "Interactive TV has gone from being a laughingstock to becoming a potentially massive revenue generator," said Josh Bernoff, principal analyst for Television Research at Forrester. "As an advertising medium, it will rival the Internet within three years." Three applications will transform ITV's revenue stream into a torrent: electronic program guides (EPGs), enhanced broadcasts, and TV-based Internet access. EPGs will be the vanguard of ITV, reaching 55 million homes by 2004. Advertisers will rush to reach viewers through EPG banner ads, info pages, and buttons, generating $3.2 billion in advertising and $1.1 billion in commerce within 5 years. Enhanced broadcasts will build more slowly, eventually pouring into 24 million homes in 2004. The interactive programming in enhanced broadcasts, like play-along game shows and special events with enhanced content, will build viewer loyalty and create new commerce opportunities. Forrester believes that enhanced broadcasts will generate $6.2 billion in advertising revenues and $3.8 billion in commerce by 2004. Finally, five years from now, TV-based Web browsing in 13 million homes will generate $5 billion in revenues from subscriptions, advertising, and commerce. The majority of ITV's revenues will go to cable and satellite operators and technology vendors like Wink, Liberate, Microsoft, and America Online. Meanwhile, interactive TV will do little to correct the broadcast networks' overall ratings and revenue decline. "Interactive television will turn the media industry inside out, with EPGs touching more Americans than any other media property," added Bernoff. "As ITV sweeps across the consumer landscape, it will pull advertising dollars away from existing media, including television and the Web." ITV's revenue streams depend on consumer devices that bring interactivity into people's living rooms. First, cable and satellite operators will install set-top boxes that deliver digital video and program guides, swelling the pool of potential interactive TV consumers. Meanwhile, consumer electronics companies will offer a variety of new boxes -- TVs, personal video recorders, and digital game consoles -- that provide further access to interactive opportunities. More..... -------------------------------------------------------------------------------- Posted: 08/04/1999 08:34 am EDT as a reply to: Msg 21513 by no_where_to_go_but_up View Replies to this Message Related Links Quote & News Profile Research Insider Go to: Start | Most Recent | Msg #: