DB&P EXECUTIVE INTERVIEW SERIES:
PERSONALIZED TV APPLICATIONS AND PREMIUM NETWORKS
Interactive program enhancements and personalized TV applications will offer viewers
powerful new features with which to customize the in-home video experience.
These applications--while still available in a limited number of markets or just now
moving into market trials (in the case of Replay Networks and Tivo)--have
nevertheless been gaining acceptance. Investment deals (witness Vulcan Ventures
taking stakes in both Tivo and Replay Networks in January 1999) and programming
partnerships are being announced almost everyday.
It's an early indication that investors, programmers, networks and premium services are
working to embrace what is clearly the future of television, despite the fact that
business models, production practices and business affiliations will change as a result.
The market is in flux, but premium networks--and HBO in particular--have been
some of the most aggressive in testing and adopting these new programming features.
Premium networks appear to be good bets for these services for three reasons:
- They are subscription based and not advertiser supported, so audience flow issues are a
non factor in a pick and choose environment;
- Viewers have limited leisure time to watch movies, and providing them a way to get what
they want, when they want it makes a lot of sense; and
- People who watch movies, or happen to be movie buffs, also happen to go online more than
the average TV viewer or Internet user.