September 12, 2000 S&P 500 Index: 1,489.26 Catherine M. Skelly, (212) 820-3610,
[email protected] Matthew Weiss, (212) 820-3681,
[email protected] New Media/E-Commerce T-Commerce: Turning Television Sets Into Cash Registers Source: Gruntal & Co., L.L.C. New technologies have enabled a shift from a few program guides, and communicate. By 2005, media choices consumed by mass audiences to Forrester Research, Inc., estimates that interactive highly individualized experiences unique to each television will generate incremental revenue of consumer (see Table 1, inside front cover). $25.0 billion, including advertising, television-based Interactive television transforms a passive and transactions (t-commerce), and subscription fees. linear viewing experience into both a participatory Television-based program guides are expected to medium and a platform for commerce and reach 87.0 million homes in the next five years. By communication. We believe that relevant timely 2005, interactive television is expected to be information and offers presented seamlessly with available to 65.0 million U.S. households. content will create value for the consumer and generate incremental revenue streams for This report examines the investment opportunities broadcasters, cable operators, and satellite yielded by the convergence of traditional media, providers. The information captured through commerce, and the interactivity of the Internet. We interactivity brings advertisers the tools they need discuss t-commerce participants, how their business to conduct true one-to-one targeting and to acquire models are changing, and the factors that will customers efficiently. We believe that in five years, motivate them to embrace interactive television.