To: eric larson who wrote (1827 ) 3/24/1998 3:26:00 AM From: eric larson Read Replies (2) | Respond to of 4748
Comments by and about ACTV in following 3/16/98 and 2/9/98 articles:"Interactive Remains on Back Burner for Ops" By R. THOMAS UMSTEAD204.243.31.23 The viability of interactive services in a digitally enhanced world is still a quandary for operators... ..."I think that interactive services have a place, with or without digital -- particularly with the success of the Internet," said Phil Laxar, vice president of programming for Jones Intercable Inc. "But the products that I've seen are not well-developed, and we have a lot of other things on our agenda right now." Yet a new study on digital interactive technology conducted by California-based BHC Consulting, to be unveiled this week at CTAM's Digital & Pay-Per-View Conference, shows that a significant portion of subscribers have an interest in interactive services. Obtained by Multichannel News, the survey -- commissioned by General Instrument Corp., Tele-Communications Inc.'s Headend in the Sky service, PowerTV Inc. and Interactive Channel -- showed that an estimated 63 percent of polled consumers are either definitely or somewhat interested in the concept of interactive services. The survey concluded that interactive services have a market potential of about 23 percent of cable households... ...Operators can also be aggressive in pricing interactive packages, according to the survey. Limiting the monthly price to between $5.99 and $8.99 apparently has minimal impact on the overall consumer appeal... ...Another top 10 operator who requested anonymity said interactive services, along with cable modems, represent the industry's second marketing and promotional push once the boxes are rolled out in a significant number of homes. "How can you sell something that no one's ever used before? People can identify with HBO [Home Box Office] or PPV, but most have never heard of Interactive Channel," the executive said. But Dave Alworth, executive vice president of entertainment at ACTV, said operator reluctance is based on their unfamiliarity with the product. ACTV, which recently signed an affiliate agreement with TCI for distribution in the MSO's Dallas/Houston market, provides enhanced information for live sports programming, including different camera angles and player stats. "[PPV and premium] channels are more in their plans because these are the channels that have been offered to them, and that they're more familiar with," Alworth said. "Once we've launched the services in more regions, MSOs will begin to take a closer look and realize that consumers are really interested in the product." "We're after the customers who think that they want more information, but who don't want to dial into the personal computer to get it," Oliver added. "There is a defined customer out there." -----ACTV Will Go Interactive in Dallas By R. THOMAS UMSTEAD204.243.31.23 The viability of interactive sports television will finally get a rigorous consumer test in the Dallas/Houston area, when Tele-Communications Inc. debuts ACTV Inc. as part of its digital rollout there. ACTV will offer four different interactive settings for Fox Sports Southwest's professional-team telecasts -- as well as some local college games and other live programming -- to TCI's 425,000 area subscribers, once digital boxes are deployed, said David Reece, president of ACTV Entertainment... While ACTV would not reveal specific numbers, Reece said its California beta-test proved that the service is viable and attractive to fans. Although he declined to reveal ACTV's overall penetration projections, Reece said the network would be 'ecstatic' if it could net 10 percent of TCI's digital households. --------- Comment from Dick Baron in recent Conference Call re penetration rates: "...May I add one little point: HSE was originally a pay service, offered at $9.95 Our penetration before we went to basic was about 15%. If our network achieves 15% even -- and we should do more than that -- then this will be very successful."