Do We Really Need

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Do We Really Need
Interactive Television?
Denise Huang
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Agenda

• ITV Whats new
• Industry overview
• Consumers attitudes and usage patterns
• What are the demands?
• Challenges from the Internet(web)
• Conclusions

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ITV (R)evolution

• Revolution
• Technology
• Media convergence- The Telecommunication Act of
  1996
• Digital technology and broadband
• Viewing Experience
• Convention TV passive viewing
• Interactive TV Interactive, more participatory,
• two way communication

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What is ITV?

• Digitalized, Value added programs transmitted by
  telecasters (cable, digital satellite, and
  terrestrial broadcast) through the broadband
  system. It goes through a set-top box (STB) in
  the household, which serves as a decoder and a
  storage hard disc before signals displayed on the
  TV screen.
• Interactive television includes technologies and
  services such as VOD (video on demand), EPG
  (electronic programming guides), PVR (personal
  video recording), Internet access, T commerce,
  games and customized information.

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Interactive services

• 1.Video On Demand- Ex Pay-per view movie, public
  video data base accessing and distant learning.
• 2. T commerce- customized advertisings are
  possible.
• 3. Internet access- check on weather, traffic,
  emails or online banking.
• 4. Personal Video Recorder (PVR)
• - enables us to rewind or pause live programs
• 5. Interactive functionalities- voting
• 6. Online gambling
• 7. Online Games

Program recording menu
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Industry Overview

• 
  
  (Unit Million households)
• Analysts predict that it would be the main
• home entertainment medium in few years.
• The prediction of ITV market growth
• 2004 reach 100 million households globally
  

• Profits come from subscription fee and
  advertising revenue
• Business conflicts, technology issues and huge
  costs drag out the industry development

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Market Acceptance

• U.K
• 1. The highest ITV acceptance in the world
• 2. BskyB is the leading digital TV brand, 6.3
  millions subscribers by the end of 2002
• 3. Why higher?
• Partly due to the comparative PC penetration rate
  is not as high as U.S
• U.S
• 1. Limited success, many of the big media had
  failed
• 2. Consumers demands had been ignored by ITV
  operators
• 3. High cable, satellite TV penetration result in
  consumers lack of interests in paying for
  additional interactive features

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Consumers Attitudes Usage Patterns

• According to the findings of usage surveys by
  Forrester Research, Statistical Research and
  Oftel (U.K) in 2000
• 75 TV consumers said they are NOT interested in
• interactive programs
• 2. The most popular ITV services are
• - Electronic Program Guide(EPG)
• - Video On Demand (VOD)
• - Personal Video Recorder (PVR)
• 3. Interactive services that are rarely used
• - Email, chatting, online banking.

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What Do Consumers Demand? (1)

• Familiarity is important
• - Consumers expect for familiar TV
  experiences watching movies, shows, playing TV
  games and browsing through the program guide
• A simple, easy-to-use interface
• - A good interface design enables increase
  of productivity, reduction in errors, and better
  user experiences
• Just want to be entertained
• - Watching TV should be a relaxed activity
• - High degree of interactive activities will
  exhaust the audience

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What Do Consumers Demand? (2)

• Interesting contents
• - Original programs with some extension of
  interactivity
• - Reality show Big Brother
• Speed and stability
• Privacy protection
• Security transaction

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ITV V.S Web
Forrester Research, 2001
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Conclusions

• The industry should do more post market research
  on consumers demands
• Familiarity and simplicity
• Content is the king
• Conventional TV might not be eliminated through
  competition
• ITV will combat with the Internet (web) service
  before finding itself a specific market position

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