• by April 4, 2001

The majority of consumers understand what interactive television is and are willing to upgrade from analog to digital cable, or switch between cable and satellite services in order to get interactive content delivered to their homes.

That’s according to a recent national study commissioned from Boyd Consulting by interactive technology companies ACTV, Inc., Liberty Livewire Corp., Motorola, Inc., OpenTV and Universal Electronics Inc.

"The study's findings tell us that consumers are keenly interested in getting interactive TV services and that they like all the delivery options they were shown," said David Beddow, CEO of Liberty Livewire and spokesperson for the research sponsors. "Even with the nascent state of the technology and content, cable and satellite operators have a captivated, if not captive, audience eager to use interactive services now," Beddow said. "Via digital set-top boxes that are being deployed today, we have the technology to deliver the interactive TV experience consumers want."

Participants in the national study were exposed to an interactive TV experience in three different ways: 1) a two-screen scenario in which synchronized Internet content for a TV program is delivered over a PC located in the same room as the TV; 2) a one-screen, or "on-screen," scenario that drives interactive Internet content through a digital cable or satellite set-top box to the TV and is viewed as an overlay on part of the TV screen; and 3) an "on-screen" system enhanced by the ability to download the content to one or more handheld touch-screen devices that can personalize the interactive experience without disrupting TV viewing.

While emphasizing that the study's sponsors provide all three content delivery configurations today, Beddow said, "The two-screen scenario, which is most broadly available, is clearly helping to jumpstart consumer interest in interactive TV services and programming. But overall, the delivery option that consumers liked best was the on-the-TV-screen overlay enhanced by a handheld touch-screen control device, such as Universal Electronics' Mosaic.

Asked how they would use interactive services delivered through any of the three options, consumers indicated a preference for instant access to information such as news, sports and weather (52%), followed by interactive TV guide (44%), behind-the-scenes information on TV programs (38%), e-mail (37%), games or quizzes (32%), and other uses.

"As important efforts continue to advance the technology for multiple interactive experiences involving the Internet and the television, the cable industry is already positioned to recruit a growing number of American households who will be accessing and viewing interactive TV content," said Beddow. "Through set-top boxes and cable-modem hookups, cable operators have a tremendous opportunity to tap into the revenue-generating possibilities afforded in today's interactive marketplace."