1. Alicechandra Fritz Meghan Laurs Lainie Motamedi
Sofa Surfing
Alicechandra Fritz
Meghan Laurs
Lainie Motamedi

2. Agenda Introduction Technology overview Key players and industries
Outlook for the future
Closing remarks

3. Definitions Internet-enhanced TV Interactive TV Personalized TV WebTV
@Home, RoadRunner
WorldGate
Interactive TV
Personalized TV

4. 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

5. Overlapping Technologies

6. 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

7. Key
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

8. 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

9. 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 ,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

10. A Web of Industries

12. How it works

13. 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

14. Should Consumers Care? Enhanced television features
Time shifting
E-commerce Opportunity
Simplification of purchasing
Community Building
Games, etc
Education

15. 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

16. 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

17. Questions