• by September 6, 2000

Forrester Research estimates that "smarter television" will enable 21 million U.S. households to interact with TV programs and advertising. By 2005, "smarter television" will create a new $25 billion revenue stream, including $17 billion from advertisers and $7.4 billion in subscription fees. TV-based commerce will add another $23 billion in five years.

On that note, ACTV and OpenTV have completed their previously announced agreement to join forces for the worldwide deployment of SpotOn. The venture is expected to bring SpotOn's one-to-one TV advertising capabilities to networks, advertisers and consumers worldwide. SpotOn is compatible with all of the leading digital interactive platforms and set-top terminals, including those currently deployed.

OpenTV has taken a minority stake in Digital ADCO and has joined with ACTV and Motorola Broadband Communications Sector to create a new subsidiary named Digital ADCO International. Under the agreement, the companies will port ACTV's software application onto OpenTV's operating system, which has an installed base of more than 9.3 million digital set-top terminals worldwide. In addition, OpenTV will provide support for TV commerce (t-commerce) fulfillment.

ACTV created its Digital ADCO subsidiary with Motorola Broadband Communications Sector to redefine traditional TV advertising. In contrast to other new technologies that allow viewers to zap out television commercials, the SpotOn service claims to focus on making TV advertising more meaningful and useful for viewers. SpotOn is designed to deliver targeted commercials based on viewers' interests, allowing them to see ads that are relevant while providing access to value-added information and special offers from the advertisers.

Jan Steenkamp, OpenTV's CEO, said "SpotOn enhances the commercial appeal of iTV to viewers, allowing them to receive advertisements that address their individual interests. This also better enables advertisers to target and measure the effectiveness of commercials; and it encourages television network operators worldwide to generate t-commerce revenues through interactive television."