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To: ed doell who wrote (1812)	3/16/1998 10:59:00 AM
From: Scott S	Respond to of 4748

TCI has an agreement with Kraft Foods and Grey Advertising. A February press release from TCI's website. tci.com 2.5.98 TCI Kraft, TCI And Grey Form Landmark Alliance To Explore Digital Future Of Television Advertising ENGLEWOOD, CO -- Kraft Foods, the nation's largest packaged food company, and Grey Advertising announced today a landmark, multi-million dollar alliance with Tele-Communications, Inc. ("TCI"), a leading cable system operator in the US, to develop proprietary advertising and marketing programs, including the first household-addressable television advertising applications. Under the agreement, Kraft will begin advertising in 1998 on TCI cable systems in a number of leading markets including Chicago, Dallas, San Francisco, Houston, Miami, Denver and Seattle. Advertising will air over such leading cable networks as CNN, ESPN, Nickelodeon, TBS and TNT. Using TCI's digital network, the alliance will be able to create sophisticated micro-marketing advertising vehicles that reach consumers with targeted messages on a household-by-household basis. One of the first applications of this geo-demographic targeting application may be the use of different ad messages to urban and suburban markets within the same region. "Kraft is taking a significant leap into local cable -- a medium that offers many untapped opportunities for marketers," said Don Miceli, VP Media Services at Kraft. "With digital technology, we can now use cable more strategically and inventively to develop a closer relationship with our consumers. Not only can we tailor messages according to local preferences, but as the technology gets more sophisticated, we can provide the means for an active dialogue with Kraft consumers within a popular entertainment platform -- television." "This alliance between Kraft, TCI and Grey will enable us to jointly develop the future of digital advertising." commented Leo J. Hindery, Jr., President of TCI. "It is a watershed event in cable television advertising, uniting for the first time one of the country's premier marketers with a leading cable operator to develop the enormous opportunities which digital technology provides to consumers." TCI has taken a leadership position in moving towards a digital future by already converting the vast majority of its systems to a digital platform. This technology not only provides the capacity for increased channels but it also allows for interactivity and targeted micro-marketing. "TCI hopes to work with a select group of national advertisers which are interested in exploring the future of targeted television advertising," said Jerry Machovina, SVP Advertising Sales, TCI Media Services. "We could not wish for better partners than Kraft Foods and Grey Advertising." TCI rep firm, NCC, is working with Grey and Kraft to insure that the system tools that are in place will provide detailed audits of pricing and audience measurement. "This venture allows Kraft to have input into exciting new digital models and techniques that are still in development, including the cable modem tests and rollouts planned for 1998," commented Alec Gerster, EVP/Media Services at Grey. "Addressable advertising, where your message is delivered selectively and specifically, is the real promise of new media. Our goal with the program is ultimately to be able to deliver one message to the cook in the kitchen, and another to the family in the den." Kraft Foods is the multinational food business of Phillip Morris Companies. Tele-Communications, Inc. is traded through the TCI Group, the TCI Ventures Group and the Liberty Media Group common stocks. Series A and Series B TCI Group common stock (TCOMA/TCOMB); Series A and Series B TCI Ventures Group common stock (TCIVA/TCIVB); and Series A and Series B Liberty Media Group common stock (LBTYA/LBTYB) are traded on the National Market tier of the Nasdaq Stock Market. Grey Advertising is the seventh largest advertising agency in the world. ______________________________________________________________________________ Scott