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To: Bert Zed who wrote (2249)	1/19/1999 9:59:00 AM
From: Jxcxjx	Read Replies (1) \| Respond to of 6180

Here's another good story. Set-Top Boxes Now Ready to Challenge PC BOSTON, Jan. 18 /PRNewswire/ -- The Internet will face a powerful new competitor in the next decade, according to Strategy Analytics. Emerging technologies will finally allow broadcasters to offer compelling interactive services which will drag consumers from their PCs back to their TV sets. A new report from Strategy Analytics' Interactive Home Services concludes that rapid developments in hard disk drive storage technologies will allow broadcasters to build new revenue streams from value-added interactive services. Many of these will challenge the dominance of today's Internet based on PCs and telephone wires. US-based start-ups such as TiVo and Replay Networks have pioneered these developments, and are now being supported by leading service providers and electronics manufacturers such as DirecTV and Philips. First deliveries of the new advanced set-top boxes should take place later this year. "Delivering interactive video is the ultimate goal for ISPs," says David Mercer, IHS Director. "The broadcast industry now has the chance to leapfrog current Internet technology in delivering compelling interactive video-based applications to the mass market." The report predicts that high-capacity hard disk drives will become a regular feature in next-generation set-top boxes, allowing temporary or permanent storage of massive amounts of data, including high-quality video. Consumers will be offered premium services such as "Virtual VCRs", Video-on- Demand and fast access to interactive information and transaction content. "Broadcasters have two key strengths for the interactive future," says Mercer. "First, they control video content; second, they own distribution channels. If they can successfully integrate these new interactive technologies with their existing business models, they will be able to offer attractive alternatives to today's PC-based Internet." Interactive Video Market Forecasts (set-top boxes with built-in hard disk drive - annual shipments, millions of units, US and Europe combined) 1998 - neg. 1999 - 0.1 2000 - 0.3 2001 - 0.9 2002 - 2.1 2003 - 4.3 2004 - 7.0 2005 - 11.3 Source: Strategy Analytics Company Background: Strategy Analytics provides insights that help global competitors develop strategies in numerous IT and communications industries. Contact: David Mercer, 44-1582-405678, Kelly Quinn, 617-738-1300, strategyanalytics.com. SOURCE Strategy Analytics Web Site: strategyanalytics.com