Why (QSTI) Questec.com Inc. will have serious growth is posted.
-----------------------------------------
Optimism Rises For Interactive TV
Tuesday February 1 5:59 PM ET
Optimism Rises for Interactive Television
By Derek Caney
NEW YORK (Reuters) - Some purveyors of interactive television -- two-way television that allows couch potatoes to use the
Internet -- are convinced the day is near when they finally can make money in the business.
At a one-day conference of technology and media executives held here on Tuesday, participants agreed that the long-promised arrival
of television programs customers can watch when they want is now at hand -- at least in rudimentary forms.
The proposed merger of Time Warner Inc.'s (NYSE:TWX - news) so-called old media assets of film, music and cable TV with
America Online Inc. (NYSE:AOL - news), the Internet access provider synonymous with new media, has renewed hopes in the
industry that someday soon TV and personal computing will converge in single box.
``The reason interactive TV has failed in the past is not because consumers didn't want it,' John Carey, director of consulting firm
Greystone Communications told attendees of the Myers Forum for Interactive Television development.
``It was because either the technology wasn't there or it cost too much. But that is starting to change,' he said.
Revenues generated from interactive television including subscription, advertising and electronic commerce, could amount to $28
billion by 2006, compared with an estimated $1 billion in 1999, according to Jack Myers, publisher of the Myers Report, a media
insider's newsletter, which hosted the forum.
``In the past, this was an industry that was viewed as one that has tried and failed,' Myers said. ``That's not the case anymore. It's an
industry that's filled with opportunity.'
Still, skepticism has deep roots: the failure of Time Warner's interactive experiment in Orlando, Fla. in the mid-1990s looms large
in the minds of many in the industry.
The system offered a variety of services like video-on-demand, online shopping, and video games via a television and cable TV
converter box but failed to capture a wide consumer following, chilling interest in the technology.
Executives gathered at the forum here on Tuesday expressed optimism that a more modest form of interactive television such as
video-on-demand was already starting to show profits.
Still, they cautioned that the television medium remains centered on delivering entertainment and broadcast information, while the
personal computer is superior for managing two-way communications and more interactive information.
TiVo Inc. (NasdaqNM:TIVO - news), for example, makes software that allows users to store television programs on a VCR-like
computer hard drive.
While hailed as a forerunner of a coming generation of interactive TV products, the Sunnyvale, Calif.-based company reported a
fourth-quarter loss of $34.9 million, or $1.03 a share and is not expected to post a profit any time soon.
Replay Networks Inc., which makes a rival device called a personal video recorder, filed a registration statement in January with the
U.S. Securities and Exchange Commission for its initial public stock offering.
At the forum other companies demonstrated interactive features that included giving viewers' a choice of camera angles with which to
view sporting events. Users might also gain access to chat rooms tied to specific programs or events, or obtain additional
information about a program or even purchase advertised goods.
Interactive TV is due for a big push this year as major players in the media, technology and communications industries move forward
with plans to offer such systems nationwide, building on early efforts by pioneers such as WebTV, a unit of Microsoft Corp.
(NasdaqNM:MSFT - news) which links TVs to the Web.
America Online is set to debut its own AOLTV service later this year, enabling subscribers to watch cable TV programs on their
TVs while surfing the Internet and sending and receiving e-mail via the widely used AOL online service.
``The real driver of interactive television will be video-on-demand and program guides that will tell viewers what's coming on next,'
said Robert Rosentel, director of new media products for Cablevision Systems Corp (NYSE:CVC - news). But he added that
consumers would continue to use their personal computers for e-mail, e-commerce and message boards.
Jim Moroney, president of Belo Interactive, the Internet unit of Dallas-based television station owner and newspaper publisher A.H.
Belo Corp. (NYSE:BLC - news), was even more skeptical.
``I'm optimistic about video-on-demand, but I don't see other functions catching on any time soon,' he said. 'Television viewing is
essentially a passive act. People aren't interested in using their television for e-mail or chat rooms. I can't even find the remote
control when I need it.'
Executives agreed that the revenue streams would be dominated by advertising.
``If you look at the Internet, subscription revenue is already starting to disappear and advertising is taking over as the main source of
revenue,' said Gary Lauder, managing partner of venture capital firm Lauder Partners.
``It's the same story with interactive TV,' he said. ``As advertising revenues go up, subscriptions will fade. Unfortunately, right now
there's not enough advertising to pay for the platform.'
But the new generation of personal video recorders, such as those developed by Replay Networks and TiVo, offer the ability to
quickly skip through commercials, which makes advertisers reluctant to support the technology that shuts them out.
======================
Added Comment by S.C.G.
Remember that Sports, Music, Entertainment are key focus points for Sherwood Coasts Group ideals in the converging sector. What I expect out of this interactively hyper-entertainment sector is huge success in implementing and truly enjoying new media with clean and rich content. This content will be available as is and attached to almost every device in our future. Since S.C.G. expect major advancements in device implementation and usage through major online mergers ie:TWX & AOL we can seriously expect these large players to be looking for the content now! I also expect more large and new media companies to team-up soon, I know there is at least one other large melting pot brewing at this time.
I also expect sports companies involved in content and entertainment to become hot-topics... Questec.com Inc. is directly in the middle of a major overhaul in all aspects of sports; people in the USA mainly are looking for new outlets for their pastimes.
I feel presently that the sports world will become an ever increasing and important part of peoples social past times. With a New Media world taking shape expect serious input from companies such as Questec.com Inc and others such as Princeton Video (PVII) and possibly (IATV) once they make it clear what part they play in a past agreement they had forged with Questec.com Inc. and others.
Bruce Cullen
Sherwood Coasts Group
geocities.com
Sherwoodgroup@bigfoot.com |
