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

Quakes, Olympics, Politics
  
It was a typically beautiful morning in Santa Monica-- and as I stretched for a cup of coffee, the table started to shake and roll.  So, I did what every good American would do.  Reached for the remote control and turned on my TV. 
  
Weather Channel, CNN, local news.  All had instantaneous feedback on what proved to be a 5.4 point earthquake.  But that wasn't enough.  So I split the screen on my 42" plasma and fired up my Media Center PC. Weather Channel on the left and CNN.com on the right.  Boy, did I feel modern.  I just had an ITV moment.
  
As important as interactive advertising is to ITV, we don't spend as much time on the interactive experience of Live TV.  In fact, if you think about it-- there really are two different categories of TV today.  Live TV (news, sports and weather) and Appointment TV (includes linear broadcast, VOD and DVR).
 
Now, the Cable and Satellite operators have been vigorously working on numerous ITV technologies (especially
true2way).  To enhance the viewer experience and provide additional value to advertisers.  But for now-- it's the Broadband TV folks that really excel at this quick response content.
 
Next month we're scheduled for a ton of Live TV content, as we slide into the Olympics and the two political conventions.  I know NBC has ambitious plans to deliver cross-platform and interactive content direct from China.  And CNN, Fox, MSNBC are sure to  have a few tricks covering the DNC and RNC.
 
We'll be tracking all of it and reporting back to you,  It should prove to be a very interactive (if not shaky) summer.

 

Thanks and Take Care,
 

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

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

 
 



Interactive Television: a short history

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.

Today and Beyond--  Interactive Television is now available in over 60% - 70% of Americans homes.  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.  BluRay wins the HiDef DVD battle.  And the "Digital Mandate" is less than a year away (the analog TV signal will be turned off on Feb. 17, 2009).  All homes will need a digital TV, a digital set-top box or a digital converter to get a signal.  Within a year, almost all homes will have some ITV capability.  New interactive programming and advertising will begin to proliferate.