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To: BillyG who wrote (34920)8/4/1998 11:13:00 AM
From: BillyG  Respond to of 50808
 
Cable TV To Dominate Net-Via-TV Services - Study

August 4, 1998

MENLO PARK, CALIFORNIA, U.S.A., Newsbytes
via NewsEdge Corporation : The cable television
industry will lead the charge to theInternet-on-TV
service market, even though few cable TV operators
offer such services today, SRI Consulting said.

The Internet-on-TV report, part of SRI's Advanced
Digital Media ongoing subscription service, shows
that fewer than 500,000 customers currently
subscribe to a Net-on-TV service. Of that number,
most subscribe to Microsoft Corp.'s WebTV
Networks service in the US.

But SRI predicts a boom is coming, with the total
number of subscribers worldwide projected to grow
to 12 million by 2002. Of those customers, 60
percent will still use a dial-up service to access
Net-on-TV.

After 2002, cable TV-based services will catch up
and surpass dial-up services, SRI said. Cable TV
enjoys several advantages over other Internet
delivery services, SRI said, including the ability to
spread the cost of set- top boxes across several
revenue-generating services, including digital TV;
relationships with TV programmers, who can help
develop Internet-on-TV entertainment content that
targets TV audiences rather than simply
reformatting Web pages designed for PCs; and
access to greater bandwidth, allowing cable TV
operators to speed up downloads and potentially
offers new applications using high-quality sound and
video.

SRI's study also notes that most subscribers will
expect Internet-on-TV service to be more like an
extension or feature of regular television service than
merely a new way to access today's Internet. Also,
areas with competitive cable TV industries like the
US, UK, Canada and France will see the highest
overall penetration of Internet-on-TV service.

Other factors that will tend to boost the market for
Internet-on-TV are high overall Internet use and low
cost for making local phone calls for dial-up access,
SRI added.

Reported By Newsbytes News Network:
newsbytes.com .

(19980803/Press Contacts: David Rader or Paul Di
Senso, SRI Consulting, 650-859- 2348; Phil Gomes,
The Weber Group, 650-463-8611. Reader Contacts:
Steve Baughman, 650-859-2365, Ed Christie,
650-859-2400, or Charles Stancomb, 44-181-
686-5555, all of SRI Consulting /WIRES ONLINE,
BUSINESS/)

<<Newsbytes -- 08-03-98>>