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July 10, 2005
Interactive Television (ITV); Where is it at today?
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Interactive TV is one of those technologies that enable many new services but yet we know so little about. In its simplest explanation, interactivity means this: there is a 'return path' between the broadcaster and the viewer. Therefore, television can be transformed from a passive activity into an interactive one. All you need are 'ITV applications' that engage the viewer and viola!
I am not a big believer that people have a burning desire to 'interact' with their televisions. However, there are some focused ideas that make a lot of sense. For direct revenue opportunities, the main money seems to be on gaming and gambling, although the latter represents more of a challenge in the United States.
I thought it wise to review some of my notes about ITV in light of the recent news that Emuse was partnering with Five to deploy interactive sponsorship for Peugeot, and that OpenTV was giving its interactive application for The Sporting News away free to Echostar subscribers.
The most informative read about where ITV is today was an assessment by informitv.com of the Interactive Television Forum 2005 that took place in London in late June. Here are some excerpts that I find interesting:
"The general tone ... was more self-critical and less self-congratulatory than at some conferences over recent years, suggesting a mood of pragmatic realism rather than idealism at what seems like a transitional period in interactive television."
"... there is a growing recognition that interactivity is no longer an interesting add-on; it has to support the core business of television."
"There was an evident tension between a perceived need to justify the return on investment through direct consumer revenue, and a wider, more strategic approach to support the television medium. For many, it was apparent that immediate commercial objectives were the priority."
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I do see a significant revenue possibility in the future (defined as 3 years out at least) of using some ITV technology in a VOD advertising solution. Interactive elements can be integrated into video on demand to transform the idea of advertising from 30-second commercial inserts into one of measurable opt-in only when the viewer is interested. But I will save those rantings for another time.
The report concluded with the following industry assessment.
"... following the news that BT is teaming up with Microsoft to launch a broadband video service, there was general recognition that broadband and on-demand services offered new opportunities for interactive television ..."
"The emergence of IPTV, internet protocol television, has without doubt been one of the most important developments in the field of interactive television over the last year. The jury is still out, but billions are being bet on the outcome."
"There is a lot to learn from the UK’s interactive television experience, but there is a strong sense that the real revolution in digital television has yet to come."
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