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To: BillyG who wrote (38225)	1/14/1999 3:51:00 PM
From: John Rieman	Respond to of 50808

NTL trials Yes TV for interactive television.................... inside-cable.co.uk 11th January 1999 CARDIFF GETS UK's FIRST INTERACTIVE TV NTL has linked up with Elmsdale Media to launch an interactive TV service in its Cardiff franchise which includes video-on-demand. It is the first all-round interactive TV service, using true end-to-end technology, offered to paying cable customers in the UK - previous trials were either more limited technically, or in the content offered, or were free. Background Yes Television, developed by Elmsdale during the last three years, offers a range of interactive digital TV services using a platform designed specifically to exploit the capabilities of a modern cable network. The system is the first to integrate television and Internet protocols in a full service. Launched just before Christmas, Yes Television underwent several months of technical trials before NTL agreed to test it on the market. Yes Television is now on trial in NTL's Cardiff franchise, with service guaranteed for a minimum of six months (until summer 1999) while the commercial aspects of an interactive service are researched by NTL and Elmsdale Media. The trial will initially reach a minimum of 500 homes, rising to 2,000 by the end of the period. Subscribers who choose to take part in the trial will pay for Yes Television as a part of their package of services from NTL. Technical Matters Elmsdale's system uses DVB compliant MPEG2 video at 4 Mbps, offering a high picture quality. The system uses high capacity video servers and delivers its services using an IP configured network. An additional box (currently a cable modem) is supplied to the subscriber and the services are then delivered through the standard settop box as a TV channel (Yes Television) to the TV. Elmsdale has been using 'best of breed' technology wherever it can in an attempt to create a system which is robust and reliable, as well as offering the greatest future interoperability. Custom software has been developed in Java. The user is offered a remote control for access to the service. When watching a video it has many of the features of a VCR - offering stop, pause, rewind, fast forward or the ability to almost instantly view the content again from the beginning. What The Customer Sees A range of major brand names have committed to providing top movies, television programmes, home shopping, music, news and local information, education and travel services. Content is delivered on demand through a simple on-screen user interface which enables viewers to navigate quickly to what they want. Subscribers choose content by using the buttons numbered 1 to 9 on a TV-style remote control. Content is categorised according to logical themes that reflect viewers' interests. A number of NTL's existing cable TV subscribers tested the service in their homes in the summer of 1998. They used the VCR features on a regular basis, suggesting that true VOD's functionality delivers real benefits to consumers. Yes Television is being positioned as a cable premium channel, sold by NTL. Customers will pay a monthly subscription (which includes the additional equipment and the information services), then will additionally pay-per-view for any video or audio entertainment services through their NTL bill, and settle any on-line shopping accounts using a credit card direct with the retailer. Pricing of the entertainment content will be tested during the trial. For movies Yes Television will be competing with Front Row (also carried by NTL), Sky's Box Office and video rental stores. Rates are likely to be in a similar range - 1 to 3 pounds for a movie. After the Trial Elmsdale Media is confident that subscribers will find Yes Television easy to understand and to use. Thomas Kressner, Elmsdale Media's founder and CEO said: "As a result of our development work with NTL, we can offer a product which is ready to deploy across broadband cable networks, and which has proven appeal to subscribers." The benefits for the subscriber may be easier to identify than commercial viability, however. Although technology costs have fallen dramatically over the last two years they are still significant. The nature of the partnership which has launched the service shows how the future may evolve. NTL is hosting the service on its network, not investing in it, so Elmsdale Media is bearing the major investment risks. The stakes are high - if Yes Television succeeds in Cardiff the experience will be priceless. The brand could rapidly become one of the biggest TV names of the next millennium.