VOLUME 8 NUMBER 3 1994

Video Dial Tone The New World of Services Marketing

Roland T. Rust and Richard W.Oliver

What Is Video Dial Tone? Marketing Week, 1991; AV Video, 1991; Video dial tone is a term which has recently Levin, 1992; Ramirez, 1992; US News & come into use to describe a newly emerging World Report, 1992; USA Today, 1992). We set of services offered over a public electronic prefer the term VDT because it implies the network that includes video, image, text and addition of video capability on recently voice communications for home and office. announced video , as well as newly In its most expansive manifestation, video announced desktop videoconferencing dial tone (VDT) is meant to include full (Brandt and Gross, 1993; Communications motion video on a switched basis and Week, 1993; Halhed, 1992; Kupfer, 1993; ubiquitously deployed. Several tests of the Personal Technology Research, 1992; Sprout, viability of this service are currently being 1993; Teleconnect, 1992, 1993; USA Today, conducted by , cable and 1993). Such applications suggest, as in the entertainment companies in the USA and case of voice dial tone, that the video abroad (Holliday and Junkmann, 1993; capability is both interactive and available to Karpinski, 1993; Mason, 1993; New York the user at all times. We believe, therefore, Times, 1993; Roberts and Carnevale, 1993, that VDT is a broader term which has Roberts et al., 1992). Consumer and business important implications for marketing and, for that reason, we will use the term VDT in this services anticipated for this new service article. include movies on demand, interactive news Video dial tone is not yet widely and music, interactive network-based games, implemented. But, because various multimedia libraries and , distance technological advances now make VDT learning, home shopping and banking, economically feasible, and the most important desktop videoconferencing, remote health legislative and judicial road-blocks have now services, past TV and many more. been eliminated, we think that its widespread VDT is the name most often used by availability is inevitable. While the telecommunications companies to describe telecommunications, cable and entertainment this service, while entertainment and cable trade press have been exploring the companies have frequently used the term implications of VDT for some considerable video-on-demand (VOD) to describe time, it has recently been chronicled widely essentially the same service available in the popular business press with major primarily on a home television (supported by stories in such publications as Forbes, some type of electronic device) (AdWeek’s Fortune, Business Week and Newsweek. This media interest is a result of the Journal of Services Marketing, Vol. 8 No. 3, 1994, pp. 5-16 ©MCB University Press, 0887-6045 increasing number of announcements by 5 JOURNAL OF SERVICES MARKETING

major US and foreign companies of their electronically. The movie is sent intention to invest in this market (Landler and electronically and virtually instantaneously to Grover, 1993; New York Times Magazine, the consumer’s video display (a computer- 1993; Sherman, 1993). While the total enhanced TV) for viewing immediately or, if potential market for VDT products and desired, stored for later viewing. Other services is at present difficult to estimate, services will include financial, health care, some have put the figure at some $30 billion legal, real estate and home shopping and annually (Multichannel News, 1992). The other such services (see Figure 1). scope of VDT, however, is now perceived to The VDT menu system is similar to that be so great that even the largest companies in employed by existing computer networks, the US market do not believe that they can such as . But there are several new address this market alone. Consequently, major technologies integrated in the home viewing potential players such as AT&T, Time Warner, unit and in the network infrastructure IBM, Sony, Apple, Microsoft, Sega (number supporting it. From the consumer’s point of two in computer games), Telecommunications view, however, the underlying technologies Inc. (or TCI, the country’s largest cable operator) and Times Mirror (newspapers) are are not the issue. The critical consumer forming alliances and joint ventures to difference is the instantaneous transmission produce network and consumer hardware, of a full range of interactive voice, data and software and service products. full-motion video services. In the remainder of the article we construct An important attribute of this new service our projection of what the marketing world, is the vast amount of information which can in particular services marketing, will be like be transmitted quickly. High-resolution after VDT is in place. To communicate most moving images with sound are feasible, directly and clearly, we generally avoid using which makes possible the accessing of the subjunctive case, even though some of the interactive libraries which provide not only situations we describe are not certain. print and image, as in conventional books, but also sound and video, as in existing CD-ROM video encyclopedias (which, with VDT, will Video Dial Tone – The Residential Consumer’s View To take advantage of this new service, the home television, , and personal computer will eventually be combined, and by using a mouse pointer (or a joy-stick or some other equally “user-friendly” device) a consumer can select options from a menu on a video display (see photo). The selections are then transmitted across a public network, and the desired services are delivered to the consumer. For example, one such service might be “movies on demand”. The consumer first chooses the “movies” icon, and then selects the movie desired. Payment from the Typical Menu Screen for a Video Dial Tone Service consumer’s account is then arranged (Courtesy of Northern Telecom and BellSouth) 6 VOLUME 8 NUMBER 3 1994

Network TV Cable TV Data services and PC networking Interactive TV Infomercials Interactive education Fiber SBBN Interactive, multiparty games optics Audio services — Radio — Telephone Home shopping Health services Home banking "Video" phone calls

Figure 1. Switched Broadband Network (SBBN) also be available as an information service Video Dial Tone – A Commercial View over the network). Service, product, and Just as in the consumer areas mentioned information offerings will first be local, then above, VDT will dramatically alter the national, and ultimately global in nature, service environment in the business-to- creating in effect, a global electronic business market. Suppose, for instance, that a shopping mall. Current estimates are that the supplier of software applications develops a capacity for some 500 or more channels will new product/service for retail banking. The soon be available on cable TV networks company salesman who specializes in this (Burji, 1993). Obviously, from a marketer’s product makes a desktop-to-desktop video point of view, this means not only tremendous call to a potential customer (desktop-to- audience fragmentation but also a vastly desktop with the two-way video signal increased opportunity to segment efficiently displayed on their respective personal and communicate to key audiences with little computers) at a bank in a distant location, duplication or waste. downloads a sample program for a “test A further critical element is the amount of drive”, successfully concludes the sale, control the consumer has over the network. downloads the full software program on to Because the offerings of VDT are controlled the bank’s mainframe, and electronically by conscious choices from menus, at invoices the bank; the bank in turn pays the whatever time the consumer chooses, the invoice electronically. All this is done consumer is no longer constrained by such electronically “face-to-face” in a matter of things as a broadcast time schedule. The hours, eliminating any travel, middlemen or consumer, ideally, can choose whatever delivery issues. program he/she wants, whenever he/she wants it. In addition, the consumer will often have the choice of paying directly for the Video Dial Tone – The Technical Basis video service or viewing commercials as part This consumer and business vision will be of an advertising-supported service. made possible by the public “switched 7 JOURNAL OF SERVICES MARKETING

broadband fiber optic network” (SBBN). The copper in existing networks. New network, or series of networks, will be “public” “compression” technologies in cable and and accessible to all in the general populace telecommunications networks are allowing who wish to subscribe (just like today’s greater amounts of video to be transmitted over telephone or cable networks), and not “private” these copper networks. The “network” refers to such as the networks owned and operated by a huge, interconnected “information highway” many large organizations for their exclusive system (see Table I for a non-technical use. In its simplest terms, “broadband” means explanation of terms). that an incredible amount of information can be The SBBN is fast approaching communicated very quickly. “Fiber optic” is a implementation, and to some extent prototype glass cable (replacing the technically inferior networks already exist. France’s Minitel copper cable in the case of the telephone system uses a visual display attached to a network and coax cable in the cable TV telephone through which consumers can network) already widely used, which makes select information or services interactively by broadband communications economically and choosing options from a menu on the screen. technically feasible. While the deployment of Programs to establish SBBN networks are fiber optic cable will provide almost unlimited also well under way in Japan, the UK, and capacity to a network, there is still a lot of many other countries.

Public Network A network available equally to everyone in a population. A network is a combination of terminals and circuits serviced by switching or processing centers. A public network, usually built and operated by a regulated common carrier (i.e. a cable or telephone company), is available to all ubiquitously and comparatively inexpensively. Private networks are closed and available only to select parties.

Switched The ability for users to self-connect two or more locations within a network at any time. Dedicated point-to- point video networks are currently available but are expensive and not generally controllable by individual users. A switched video network, by contrast, would allow users to make a video call to any other party, inexpensively, and as easily as making today’s voice . Today’s current cable networks lack switching capability (and the necessary real-time billing capability), but some are adding such capability in order to offer voice services initially and video services later.

Broadband A communications channel capable of carrying massive amounts of information of virtually unlimited . Voice, data and video information have different signals of bandwidths. Video has the greatest bandwidth. Broadband can carry many hundreds of times more information than today’s narrowband telephone line or cable TV’s .

Digital The representation of information (voice, data, video) in the form of discrete digits. Digital information requires much less space, is of higher quality, and costs less to use compared with a continuous analog signal.

Fiber optic Glass cables about the size of a human hair which use light (often from lasers) to convey information, and capable of carrying massive amounts of information. Most networks today use electrical signals over copper cable. They are less efficient, lower quality, and carry much less information.

Table I. The Public Switched Broadband Digital Fiber Optic Network

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In the USA a number of technical and market believe, will move to bring the benefits of feasibility tests (or trials as they are called in these new services to businesses and the industry) have been undertaken by consumers. As we will describe, the benefits telecommunications, cable and entertainment are enormous, as markets and marketing companies. While they are too numerous to become faster and smarter. list in their entirety, a partial list includes trials of various aspects of VDT by AT&T and Time Warner, Bell Atlantic, US West, Faster and Smarter BellSouth, TV Answer, ACTV, and others. A To see the potential of VDT, we must abstract number of these trials do not have the benefit its key contributions. In its most basic form, of networks with fiber from end to end, but VDT may be thought of as a system which are relying on a new compression technology combines faster communication with smarter known as ADSL (asymmetric digital information processing. Thus, from a subscriber loop), an extension of ISDN business standpoint, the defining technology that allows video to be sent over characteristic of VDT is its ability to make existing telephone wires. marketing faster and smarter.

Regulatory Issues Faster The biggest obstacle to VDT in the USA is To see clearly the impact of VDT on faster not technical but political, as there are many service, we must imagine service time powerful business interests Ð , approaching zero, and then use that image to telephone companies and newspaper conceptualize the service under VDT. Let us publishers, among others Ð competing to take consider some examples. advantage of this new service. While the Consider “movies on demand” as discussed courts, regulators, and Congress continue to debate the rules for competition in the previously. What does a consumer currently information services business, it is our have to do to see a movie? Either he/she must contention that consumer pressure and global wait until show time, and then drive to the economic realities will force an early and theater, or wait until broadcast time, and then equitable solution to the legislative and switch on the TV. Either way, the consumer is regulatory log-jams. One of the most waiting until a scheduled time. What if the important steps was taken recently when the consumer did not have to wait? That is, what US courts allowed the Bell operating if the service time went to zero? Then the telephone companies to provide information consumer could see the movie whenever services as well as being common carriers for he/she wanted to, immediately. This is such services. This has had the effect of accomplished in VDT by selecting a movie spurring most of the major players to begin to and having it shown immediately. implement their plans for VDT networks. Consider the banking transaction of A number of countries are rapidly and shifting funds from savings to checking. widely deploying information service Originally, the customer needed to wait until technologies to improve services and reduce business hours and then drive to the bank. costs for consumers and businesses alike and, The advent of the ATM reduced service time as a consequence, improve their global by eliminating the need to wait until business competitiveness. The USA must and, we hours. VDT will eliminate even the drive 9 JOURNAL OF SERVICES MARKETING

time. The transaction will be completed at wish to see both in succession. Alternatively, home over the network. the consumer may choose whether it is A service which is likely to be transformed detailed facts and arguments he/she wants by VDT is the supplying of news. Currently, (which would be available in print, usually) or there are several options, among which the whether a visual presentation is needed. Audio most prominent are newspapers and TV (similar to radio) could also be supplied in this newscasts. But let us consider these options context. from the standpoint of service time. To get Also, the news supplier could give the printed news, we must wait until the consumer exactly the news he/she wanted. For newspaper delivery hour when the newspaper example, if Joe is a sports fan, then sports is tossed on our driveway or we can pick it up would be emphasized in Joe’s newspaper, at a news-stand. Instead, suppose we could newscast, etc. The presentation of news would choose printed news on the VDT menu, and be individualized, based on stated preferences then have it printed on our printer, whenever or past choices (or both). A smarter news we wished. The “newspaper” could be edited source would also be sensitive to changes over on a continuous basis, with a story remaining time in news preferences. Thus the on the network for a specified length of time. individualized “newspaper” would be It would also be possible to store recent constantly changing to adapt to the changing stories, so they could be recalled for a period desires of the consumer. of time after the fact. Let us consider another example of a A similar service could be created for smarter service which should be feasible under industries like the airlines that rely on VDT. Suppose a consumer wishes to buy some suppliers for service, training, and up-to-date clothing and bill it to his/her credit card. A documentation. Providing technical smarter network would already know the specialists in real time, in interactive video consumer’s mailing address and credit card sessions, will dramatically reduce the service- numbers. It could also connect directly and related “downtime” in manufacturing and instantaneously with the clothing company. repair situations. This makes the ordering process much faster and easier. Also, the link to the television Smarter makes it possible to show the merchandise, Just as we imagined the impact of faster perhaps from many angles, and perhaps in service by imagining service time going to moving video, before purchasing. The system zero, we can imagine the impact of smarter would also know the consumer’s size, without service by imagining a service provider which asking, and could comment on availability. is much more intelligent, and much more knowledgeable about the consumer. Let us again consider the example of Consumer Power supplying news. The previous section talked One of the most startling results of VDT will about how this could be done faster. But it can be the increase in the power of the consumer. also be done smarter. One way in which this This is a direct result of the dramatic increase service can be smarter is by realizing that in the quantity and quality of information consumers do not really care about choosing which will be available to the consumer. between TV and newspapers. What they really care about is the news. Thus, if the menu is set Price up by news story, there might be both video When the consumer has competitive price and print related to the story. A consumer may information readily available, the only result

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can be a market which approximates, in intentionally chosen by the consumer, to be economists’ terms, pure competition. This effective. It must “stand on its own”, without should result in a lowering of prices, since being tied to media vehicles. To see why this any business that priced too high would be is, ask yourself the following question: conspicuous. This would result in fierce price “Which ad is more effective, the one competition, all to the consumer’s benefit. embedded in a TV program, unsolicited, or the one actively sought out by the Channel Power consumer?” Because ads have always been The advent of scanner data resulted in a linked to content, we have an image of major shift in channel power in the 1980s. advertising as being unwanted. This attitude Retailers became much more powerful with will change under VDT. The fact is, pertinent respect to manufacturers. The reason for this advertising has always had useful information is information. Prior to the arrival of content. The mechanism which ensures scanners, the manufacturer had access to pertinence has been missing; that is, an nation-wide survey data, while the retailer efficient way for the consumer actively to was essentially operating in the dark. This choose the ads which interest him/her. resulted in the manufacturer having Because consumers will actively seek significantly more power than the retailer. pertinent advertising, and that advertising will How could the retailer doubt the be vastly more effective than ads linked to manufacturer, if the manufacturer told the programs or news content, advertising retailer that product A was doing very well in resources will shift toward supplying markets similar to that which the retailer voluntary ads, and away from traditional served? With scanner data, however, the advertising, linked to traditional media retailer has available reams of data about vehicles. The result will be the probable exactly what is selling in that particular demise of “free” television, and a tendency market. This gives the retailer the upper hand. for most services under VDT to be pay A similar shift will occur under VDT. This services. Consumers will tend to see time, though, the consumer is likely to have advertisements of their own choosing, and the advantage. Suddenly a vast amount of that advertising may be multimedia, or of the information will be available to the consumer, form desired (e.g. text if details are desired, and almost all of it will be received by video if visuals are desired). Annoying ads personal request. This gives the consumer will disappear because they will not be great power over the process. Two results are chosen. predictable: (1) the transformation of advertising; and Knowbots – Knowledge Robots With so much information to sort through, (2) the emergence of artificial intelligence consumers will need some help in deciding tools to help the consumer to consolidate what to consider attending to. Anyone who his/her control over the incoming has seen a television directory for satellite information. broadcasting has had a small preview of the These two predictable results are discussed problem. There are so many available below. programs on satellite that it is very time- consuming to scan them all. Even on cable Personalized Advertising systems, where the number of choices is If the consumer can choose exactly what smaller, studies have shown that consumers he/she wants, then advertising must be tend to select from only a small number of 11 JOURNAL OF SERVICES MARKETING

cable channels. With VDT, choosing the a large library of alternatives is likely to be initial set of alternatives will be an available for immediate viewing, on demand. overwhelming task. The knowbot can help to narrow down the The solution to this problem is the huge number of alternatives. Recorded music knowledge robot (knowbot), which is an also fits into this category, as SBBN artificial intelligence system designed to technology will permit the transmission of select information options based on the CD-quality digital data. consumer’s desires. Likewise, new car n models which are likely to interest the consumer might have their ads selected by the Music may knowbot. be purchased The knowbot will be the consumer’s own by the song agent, housed in the consumer’s own system. It will work directly in the consumer’s n interest and will be a vehicle for enhancing consumer power. It will be portable and Increasingly therefore, music may be available at home, work or play. The earliest purchased by the song or the album as a manifestations of the knowbot are the service (perhaps as customized MTV-like personal digital assistants (PDAs) announced programs designed and delivered to the by Apple, AT&T and others. While not customer’s specifications) rather than a specific to the VDT market, they are the physical product. A “party tape” of various forerunners of the sophisticated knowbots songs could be assembled over the network which will help consumers to cope with vast on a pay-per-listen basis. Thus the actual amounts of information in a VDT world. physical ownership of CDs, tapes and records is likely to decline. Cable systems are already offering similar services. The Transformation of Media The vast increase in the number of choices, and the network nature of the system, will The preceding sections have shown that make it possible (and common) for someone media as we now know them are likely to be from California to watch Georgetown transformed dramatically by VDT. First, the basketball games or someone from media will no longer be distinct. A single Washington DC to watch UCLA games. presentation may involve video, high fidelity There will be no such thing as local media stereo sound and available print. Even smell anymore. All media options will be national. or 3D video may become available as the There will still be a market for local technologies are developed. We will consider Nashville news, for example, but, although the impact of VDT on two types of media: most viewers will be from the Nashville area, “moving media” and “still media”. some will be from widely scattered parts of the country. Moving Media The “moving media” are those which unfold Still Media in real time. They include such things as TV, The “still media” include the traditional print radio and movies. For the purposes of VDT, media such as newspapers and magazines, TV and movies are essentially the same. plus art forms such as photography and Because of the transformation of advertising, painting, and knowledge forms such as these media are likely to be pay-for-view, and books, encyclopedias, and databases. All of 12 VOLUME 8 NUMBER 3 1994

these are likely to be pay-per-use. There are For our purposes, we will consider the “four several potential presentation modes. The Ps” (promotion, price, product, and place), first is video display, which is currently plus a “fifth P” (people). widely used for computer networks. The advantages are high quality color images and Promotion efficient disposal of the used images. The Promotion includes advertising, sales second presentation mode is print. A printer, promotion, and direct selling. We have seen hooked up to the network, can produce hard in a previous section how advertising will copy of the presented information. This has the change from involuntary to voluntary. This disadvantage of being wasteful of raw implies that ads will focus less on grabbing materials. A third presentation mode, already attention and more on persuading the in common usage in computer databases, is the consumer of benefits. Advertising will thus transfer of information to a local computer file. contain more information, both factual and A fourth mode of presentation seems to be emotional. Considerable effort will be the most promising for media which have expended to construct ads which will be traditionally been held in the hand, such as selected by knowbots. Ads may also be multi- books and newspapers. This mode has not yet media whenever such a move can be cost- been perfected technically, but we know what justified. For example, a GM ad may look characteristics it must possess. It will be a flat, like a TV commercial but then provide electronic display, but will feel like a book, optional facts, figures, and details for and its screen will not be shiny or reflective. It examination using the liquid book or for will use very little electricity, reducing health storage on the local computer. risks and annoying static. A simple control, Sales promotion will change dramatically, built into the “liquid book”, will control the too, as consumers gain the ability to seek out moving forward or backward in pages. The actively which products are on sale or which liquid book will have no resident memory, but stores are having a store-wide sale. Knowbots rather will send and receive radio messages to may also be useful in sorting through and from the system’s local computer, where promotions to see which would be of greatest the information providing the images is interest. housed. Although it is well-known that people Direct selling is likely to decline in do not like to read large amounts of text on a importance, but not disappear, for the simple screen, liquid books will have the advantage of economic reason that unit promotional output audio and video information to add interest will stay about the same for personal selling, and excitement. Viewers/readers of these but decrease for media promotion. Personal books will have the option of using a disk or selling through videoconferencing will CD, or receiving information remotely through become a commonplace alternative. Some a network. companies are already planning videoconferencing networks from the central customer service locations to retail outlets. Implications for Management Once the SBBN is in place, the video- The dramatic media revolution pictured in the conferencing can be direct to the home. preceding sections will destroy marketing as it is currently practiced, and provide a new set Price of marketing opportunities. We will examine We have seen that well-informed consumers the impact on marketing management by force prices down, because the conditions inspecting each of the major decision areas. which result in perfect competition are more 13 JOURNAL OF SERVICES MARKETING

nearly met. An implication for business is that Place (Distribution) competing on price becomes a very effective Information services can be provided at any way to get consumers’ attention. Those not time, from anywhere, if there is a network. wishing to compete on price must work Since information services will be the most especially hard on the reciprocal variable in rapidly growing part of the economy under the value equation, quality. Fortunately, VDT, the concept of place will become quality is more easily demonstrated in a relatively less important. Also contributing to multimedia setting, especially since a longer the decline of the importance of place will be demonstration is likely to be tolerated if the ad product information available network-wide, is voluntarily selected. which will make competitors out of businesses which are widely separated geographically. Both wholesalers and retailers will become Product less important because direct communication In a world defined by VDT, products and with the manufacturer will be facilitated. The services will have to meet an emerging set of consumer can order direct, over the network, criteria we call “VIP” – visual, intelligent perhaps after selecting and viewing an and personal. Static, visually uninteresting extended “infomercial”. This cuts out products and services will lose out to those traditional channel intermediaries. which have an exciting visual personality, and communicate clearly and quickly. Products and services which provide real People information and intelligence will be those In an information economy, the “fifth P” sought out and used by consumers. Such (people) becomes more important. The fifth P products will be priced on the basis of their includes such concepts as customer service, “intelligence value” to consumers and older customer satisfaction, relationship products will be able to be revitalized on the management, and complaint handling. All basis of their information and intelligence these elements are significantly strengthened quotient. Finally, the products and services by VDT. Customer service is strengthened which succeed in an era of VDT will be because greater communication is possible. personal Ð that is, they will allow consumers Suppose, for example, the consumer is having to be involved in their creation and will be some problem with a product. The customer highly tailored to individual consumers’ service department can use video to needs. An excellent example is the on-board demonstrate how to fix or use the product navigation system currently being tested for properly, in real time, over the network. cars. The device is mounted in the dashboard Customer satisfaction monitoring and and on command will provide a visual map complaint handling are improved because the of a desired destination, real-time analysis of network itself has two-way communication traffic conditions (through wireless ability, so the customer can complete a communications with a central traffic control satisfaction survey electronically and point), and exact directions on the most immediately, perhaps for some small reward. convenient, safest, and most economical Relationship management is strengthened route. VDT will not be confined to the home because a business can keep track or office, but will be available everywhere. electronically of the ordering history of a New portable video devices are already being customer, instantaneously updating a introduced. consumer profile. Relationship management 14 VOLUME 8 NUMBER 3 1994

must become much more than junk mail, impact on the practice of marketing, as price however, as identifiable customer benefits becomes more important, place becomes less must be offered to motivate customer important, and “micro-niching” becomes the receptiveness. segmentation strategy. Customer service, customer satisfaction, relationship Marketing Strategy management, and complaint handling will all The key concept here is segmentation and, be facilitated and become more important in with mass advertising being replaced by the environment of VDT. individually selected advertising, the size of a We must all get ready to change the way profitable market segment will probably we do business. become much smaller. Thus “micro-niching” (addressing market niches which were n formerly too small to be profitable) becomes the winning product/service strategy. This concept combines very well with flexible References manufacturing. Imagine also the concept of an AdWeek’s Marketing Week (1991), “What’s individual-specific banking service where the New in Design? Brave New Phones”, 1 fees and services are designed to maximize January, p. 18. the individual’s benefits at the least cost. AV Video (1991), “The Broadband Window: TV Individualized products and services will in the PC”, November, pp. 100-07. become dominant in the VDT environment. Brandt, R. and Gross, N. (1993), “3 DO’s New Game Player: ‘Awesome’ – or Another Summary Betamax?”, Business Week, 11 January, p. 38. To summarize, VDT (a combination of advance and computer Burji, M. (1993), “No U turn”, Mediaweek, 19 technologies) is likely to revolutionize April, pp. 26-32. marketing in the next 20 years. Its Communications Week (1993), “Tuning in implementation Ð long blocked by law and Video”, 14 June, pp. 45-7. court rulings and maneuvering by various Halhed, B.R. (1992), “Desktop Video Begins industry groups Ð is currently accelerating. Edging into the Picture”, Business Businesses will have to rethink their strategies Communications Review, January, pp. 30-34. Ð particularly marketing Ð as almost all Holliday, C. and Junkmann, V. (1993), products and services will be able to be “Broadband Services Begin to Shape up”, provided faster and smarter. VDT is a , 26 April, pp. 26-9. bonanza for the consumer, because the vast Karpinski, R. (1993), “US West Débuts amount of available information portends a Fiber/Coax in Omaha for Voice and Video”, shift in power from business to the consumer. Telephony, 26 April, p. 9. Advertising will become voluntary and the media will merge. Pay-per-use will probably Kupfer, A. (1993), “Any Movie, Anytime”, replace advertiser-supported media and multi- Fortune, 25 January, p. 83. media presentations will become Landler, M. and Grover, R. (1993), “Media commonplace. Print media will become a Mania”, Business Week, 12 July, pp. 110-19. historical curiosity as soon as a tactilely Levin, G. (1992), “Interactive TV Rivals Poised acceptable electronic book substitute (“liquid for Battle”, Advertising Age, 30 November, book”) is devised. All this will have enormous pp. 3, 16. 15 JOURNAL OF SERVICES MARKETING

Mason, C.F. (1993), “Bell Atlantic Demonstrates Sprout, A.L. (1993), “Point and Shoot”, Video-on-demand”, Telephony, 28 June, Fortune, 28 June, p. 145. pp. 10-12. Teleconnect (1992), “Sharpening Its Image: Multichannel News (1992), “Video Dial Tone Videoconferencing’s Looking Better All the Market Pegged at $30B”, 13 January. Time”, July, pp. 79-89. New York Times (1993), “Sega + TCI + Time Teleconnect (1993), “Video Update: How Warner Network Interactive Games”, Things Are Shaping up and What’s on the 15 April, p. C1. Horizon”, May, pp. 98-114. New York Times Magazine (1993), “The Future US News & World Report (1992), “An Eye on Is Here and It’s Ringing, but Most of Us Are Phones”, 22 June, pp. 79-82. still Fumbling around in the Information Stone Age”, 16 May, pp. 28-29, 50, 52-56, USA Today (1992), “AT&T Unveils 62-64. VideoPhone”, 7 January, p. B1. Personal Technology Research (1992), Video USA Today (1993), “Do We Really Want to Telephony: Future of Visual Interact with TV?”, July, p. 1. Telecommunications Update – Part 1, Waltham, MA. Ramirez, A. (1992), “A Video Telephone from MCI”, New York Times, 24 September, p. D4. Roberts, J.L. and Carnevale, M.L. (1993), “Time Warner Plans ‘Electronic Superhighway’”, Wall Street Journal, 27 January, p. B1. Roberts, J.L., Carroll, P.B. and Reilly, P.M. Roland T. Rust is Professor of Marketing and (1992), “Age of Interactive TV May Be Director of the Center for Services Nearing as IBM and Warner Talk Deal”, Wall Marketing, and Richard W. Oliver is Street Journal, 21 May, pp. A1, A6. Professor for the Practice of Management, Sherman, S. (1993), “The New Computer both at the Owen Graduate School of Revolution: Changes Shaking the World’s Management, Vanderbilt University, Most Important Industry”, Fortune, 14 June, Nashville, Tennessee, USA. pp. 56-84.

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