To: levy who wrote (25975 ) 6/15/2001 8:10:58 PM From: Roger Sherman Read Replies (1) | Respond to of 28311 Two potentially HUGE iTV revenue streams... Geesh...this first article I hadn't even considered in my wildest dreams (how embarrassing that it was written on my birthday, and I had completely missed it). ;)allnetdevices.com And then there's this Reuters article, which was published in yesterday's New York Times: June 14, 2001Shopping Shows More Early Promise on iTV Than Ads By REUTERS Filed at 2:19 p.m. ET NEW YORK (Reuters) - Prospects for revenues from shopping look more bullish than those from advertising on interactive TV, Internet research firm Jupiter Media Metrix said in a report released Thursday. Interactive TV, which aims to marry the best features of the Internet and television, has garnered a good deal of buzz in recent years but has yet to gain widespread acceptance and contribute to the coffers of the variety of companies that have invested in the new technology. Similarly, interactive TV has been characterized by some industry executives as bearing huge promise for advertising. Jupiter now expects interactive TV to reach 8 percent of U.S. households by the end of 2001 and 42 percent by 2005 -- a year sooner than its previous forecast. However, analyst David Card said it will take a year longer for interactive TV to generate the type of revenues Jupiter had forecasted. ``The lower-end stuff got deployed earlier than we thought, but given the hesitancy of the market and the ad industry, we think people will experiment more frugally for a while,'' he said. Advertising won't account for more revenues than shopping until 2005, due in part to current U.S. economic conditions, Internet advertising's seeming ineffectiveness, and the lack of a common national iTV technology platform, Card added. In its report, Jupiter said shopping on interactive TV will account for 44 percent of total TV-based shopping in the United States by 2005 while advertising on interactive TV will account for only 7 percent of total U.S. television advertising.total $4.3 billion and advertising to garner $4.5 billion, fragmented across networks, carriers, and third-party response networks. Revenue from shopping on interactive television will largely be driven by a shift among existing TV shopping networks' channels. Jupiter expects that $5.5 billion in revenues from shopping channels and infomercials will shift from the phone to the television. Shopping on interactive TV will take three forms. Viewers will use a remote instead of the phone to buy items featured in infomercials or shopping channels. Viewers will also tune in to Web-like catalogs or stores that carriers and their partner merchants will provide and also interact with offers integrated into commercials and programs to capitalize on impulse buying. As competition heats up, Jupiter expects carriers to offer for free many of the current fee-based services such as program guides and digital video recorder functions that allow viewers to pause live television