Interactive TV to Top $20B by 2004

Author:
Publish date:
Updated on

Cambridge, Mass. -- Interactive television will be a huge
force to be reckoned with according to a new report from leading research firm Forrester
Research Inc.

Forrester estimated that interactive TV will generate $11
billion in advertising, $7 billion in commerce and $2 billion in subscription revenues by
2004. The report identifies cable operators and satellite companies as the main
beneficiaries of this boon.

The report also indicated that technology vendors such as
Wink Communications Inc. and Microsoft Corp. will see huge growth opportunities.

Forrester identified three interactive-TV applications that
will drive the growth: electronic program guides, enhanced broadcasts -- including
play-along game shows and special events -- and TV-based Internet access.

"Interactive television will turn the media industry
inside out, with EPGs touching more Americans than any other media property," said
Josh Bernoff, principal analyst for television research at Forrester, in a prepared
statement.

"As ITV sweeps across the consumer landscape, it will
pull advertising dollars away from existing media, including television and the Web,"
he added.

Related