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Agenda Introduction Technology overview Key players and industries Outlook for the future Closing remarks
Definitions Internet-enhanced TV Interactive TV Personalized TV WebTV @Home, RoadRunner WorldGate Interactive TV Personalized TV
Internet-enhanced TV Set-top box Cable modem Alternative technologies WebTV relies on phone lines Cable modem @Home and RoadRunner -- like AOL, but on TV Bundled with cable service Alternative technologies WorldGate
Overlapping Technologies
Key Players: WebTV 1997 Microsoft purchase Hardware + three types of service at varied price points Recent deal with EchoStar for satellite Emphasis on ease of use, positioned as ISP 800,000 subscribers Moving into personal TV technology
Key Players: @Home Controlled by AT&T, merged with Excite, affiliated with TCI and Real Networks High-speed service over existing cable infrastructure 500,000 subscribers and growing Pricing structure varies by region Alliances with cable companies and network partners
Key Players: RoadRunner Joint venture of Time Warner Inc. and MediaOne Group; Microsoft owns 10% MediaOne subject of bidding war between AT&T and Comcast High-speed service over existing cable infrastructure 250,000 subscribers and growing Planning IPO
Smaller Players WorldGate -- Utilize 55M existing boxes Service delivered via cable lines to digital set-top boxes; work through cable providers at a lower price point than AOL or WebTV Wink -- 120,000 Wink-box viewers Agreement with CBS to provide enhanced TV through cable or satellite set-top box WebSurfer -- Cornering Canadian market Partnered with Intel, Netscape, Batra Group
A Web of Industries
How it works
Future Outlook Key Areas for Advancement of Internet TV Better bundling of product Convergence of technologies and industries Ease of use and speed Interactivity, Branding, Customization, Costs, Experience
Should Consumers Care? Enhanced television features Time shifting E-commerce Opportunity Simplification of purchasing Community Building Games, etc Education
Trends Users told spend 2 hours a day on WebTV - the numbers are climbing over time 57% sought out entertainment Web sites 56% want weather information. 53% seek news beyond broadcast channels 49% of them purchased at least one product online in the last 12 months -TV Online 4/99
Predictions Audiences will be fragmented Who is the customer? Digital cable will be the norm Direct competitor to satellite (EchoStar, DirecTV) Infrastructures potentially stressed Cable, Internet Web of industries become more tangled Integrated bundling
Questions