Interactive Television Alliance

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….an independent trade association representing the broad interests of the ITV industry.

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ITA Update: The largest cable operator you never heard of...

It’s very clear… that the future of TV is on the Internet. But with all the talk of “cord cutting”, the cable and satellite companies still rule, representing over 90M homes. Comcast and DirecTV alone represent almost half of that (42M). And they’re the ones who most influence the economics of home media. As much as you hear “Content is King”… if you don’t have distribution, you have nothing.

So, it was with great curiosity that I stepped into the annual NTCA Conference in Dallas. This is the “NTCA” (National Telecommunications Cooperative Association), not the much larger “NCTA” (National Cable and Telecommunications Association). The NTCA (along w/ the NRTC and the NCTC) represent over 1,400 small rural operators… each with between 500 and 20,000 subscribers. As an aggregate, they would be considered the second largest cable company, with almost 18M customers.

The conference was fascinating…because of how little most of us know about this world. And how much potential business we’re all missing. From the ITV side of things, the opportunities are most intriguing. A cable operator with 5,000 subs is much more flexible than one with 10M. And it’s much easier to test new technology on the much smaller group. It’s like having a nationwide platform to test new applications and services.

With that said, there is a lot of transformation going on in the business… both bad and good. Turns out, their traditional business of providing land-line telephone service is dying on the vine. They are losing customers (to cell phone/VOIP) and the government subsidies that keep them in business. So, they badly need new services to sell, to replace the lost revenue.

So, here comes the cavalry. Just like government programs subsidizing rural electricity since the 1930’s and rural phone service since the 1950’s… we now have a government program to bring broadband Internet to all corners of rural America. As they provide Internet services… they can now carry digital TV and VOIP services, as well. They have the need, the opportunity and the subsidized funds to pay for it. We just need to figure out ways to help out.

See you soon.

Ben Mendelson
President ITV Alliance (ben@itvalliance.org)

Allison Dollar,
CEO ITV Alliance (allison@itvalliance.org)

1953: Winky Dink-- first "interactive " TV show. Kids put a plastic sheet over the picture tube and draw on top of a running program.

1957: Zenith "Space Command" Remote Control-- with 13 VHF channels, the viewer could sit back in a Lazy Boy Lounger and switch stations without getting up from the TV Dinner.

1972: Cable TV-- cable expands as HBO is launched, satellite distribution becomes viable, and regulations loosen. Cable allows the potential of over 75 channels, giving us the Set Top Box (STB) and making the remote control man's (and woman's) best friend.

1977: Qube-- Warner Cable debuts ITV service in Columbus, Ohio. A limited amount of customers can now get additional information while watching a program and can participate in live polls. The system is dropped as additional benefits can not justify the cost of the equipment.

1984: 1984 Cable Act-- deregulation accelerates cable penetration. Cable homes increase to over 50M homes by the end of the decade.

1994: Full Service Network-- Time Warner launches ITV services in Orlando FL. It works fine, but nobody wanted to pay for the $5,000 digital STB's. The newly rediscovered Internet looks more promising.

1995: Digital Satellite-- TV expands to 500 channels. Almost 12M 18" dishes are sold by the end of the 1990's. The enhanced program guide becomes a necessity.

1997: WebTV-- the Internet converges on the TV screen. WorldGate and AOLTV get into the act as well. Their combined base soon exceeds 1.5M. Microsoft buys WebTV.

1998: Digital Cable-- MSOs start expanding the digital infrastructure to over 1.5M homes, giving customers potential access to ITV services. By end of 1990's, that number expands past 5M.

1999: Digital Video Recorders-- TiVo and ReplayTV change how we watch and interact with the TV. Including Dish Network and UltimateTV, over 3M DVRs are sold by the beginning of 2000.

2000: ITV Deployment-- ITV programs started by every MSO and DBS system. Wink is available in over 6M homes. OpenTV, Liberate, Canal+, and WorldGate make important strategic alliances. Over 20M homes have boxes capable of some form of interactivity. Cable companies begin pushing Video on Demand (VOD) and Interactive Program Guides (IPG). Microsoft gets into the cable business, selling its head-end software to AT&T cable.

2001: 9/11-- the NYC disaster derails Microsoft's plan with AT&T. Other plans are put on hold. RespondTV and CommerceTV go under. In response to the downturn, the ITV Alliance launches in 2002 with 5 original ITV companies leading the way (OpenTV, Liberate, Canal+, ACTV, Worldgate). By end of year, the ITA adds over 30 companies, including Disney, Turner, Procter & Gamble, Mediavest, Comcast, DirecTV, Microsoft and Intel.

2003: Consolidation-- John Malone's Liberty Media buys OpenTV, Wink and ACTV. Rupert Murdoch's NewsCorp buys DirecTV. Microsoft pushes MediaCenter PC as broadbandTV becomes more accessible in the livingroom. The cable operators embrace OCAP as the new digital TV platform and plans roll-out within 5 years. The TV Academy gives its first Interactive Emmy Award.

2006: New TV's, New Platforms-- 42" digital flatscreens approach $1,200, same price (equivalent) as a color TV in 1968. DVD completely overtakes VCR's and HiDef (HD)TV's become standardized. Mobile TV on cellphones and iPods become a credible business. TelCos (Verizon and AT&T) get into the TV business with their own IPTV platforms. Internet broadband is available in over 50% of American homes.

2009 and Beyond-- Since June 12, 2009... all TV signals became digital. Interactive Television is now available in every American home, whether through a digital TV, digital set top box, or digital converter.. VOD, IPG's, DVR's are becoming ubiquitous. Advertisers are taking advantage of targeting and tracking of their ads, putting pressure on the traditional Nielsen system. Google and Apple are now heavily invested in digital TV and ITV. New interactive programming and advertising will begin to proliferate.