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TV talkback

South African couch potatoes are witnessing the slow birth of interactive television.
By Jason Norwood-Young, Contributor
Johannesburg, 19 Aug 2002

For a country that resisted the adoption of television so vehemently in the 1970s, SA has certainly surged ahead in the technological aspects of the "tube". Multichoice`s introduction of its interactive television offering last month heralded the next step in television`s evolution - interactive TV.

Interactive television (iTV) is not a new concept - even in SA. Tele-text has featured marginal interactivity for years, while DSTV has offered interactivity for some time now, providing the interactivity relied on one-way transmissions only. However, the most advanced iTV applications are to be found in South African hotels.

A platform called Guestlink, distributed locally by Tomorrow`s Technology Solutions (TTS), is based on Windows 2000 Professional and offers Internet browser access, e-mail, pay-per-view and scheduled movies, a calendar of hotel events and hotel information.

"The value it adds to guests is unlimited," says Sam Danon, CEO of TTS. "The guests love us and the hotel management loves us because it improves the experience." Guestlink has an install-base of 5 000 hotel rooms, including 1 300 in Sun City.

Commenting on Multichoice`s offering, Danon says: "What Multichoice does is limited iTV based on technical limitations. Their decoder has limited technical capacity - it`s not a full computer. Their software is not Microsoft. If you are not running on Microsoft today, you`re out of the game. It makes sense for them as M-Web is owned by DSTV, and they are looking for more income streams. But it`s not true iTV.

"Interactive TV is the future of the world - it`s an extension of the Internet," continues Danon. "Look at what DSTV is doing. It`s limited, but Windows 3.1 was also limited. In two to three years they will go to the next level. We`re 10 years ahead of them, but our limitation is that we`re only a hotel platform."

Talking about the weather

<B>Interactive TV guide</B>

Media Visions Journal (www.media-visions.com) breaks iTV into the following categories:
Enhanced TV: Any type of programming can be enhanced with icon-driven access to embedded information, usually displayed as an overlay with text and simple graphics, yet downloadable as a full screen or "page" of text and graphics. (Those outside the US may think of enhanced TV as refined tele-text.) Enhanced content in an analogue or digital signal sits waiting to be accessed by viewers, so a return path is not needed. Key vendors in this space include Wink, Worldgate, WebTV, Open TV and Liberate.
Individualised TV: Modifying a program to match your individual desires includes changing camera angles at will and calling up instant replays in sports and live news, guiding the plot in dramas and comedies, and having the TV host respond to your answers on a game show. As with enhanced TV, individualised TV content was first developed as one-way broadcasting, but now can be two-way. The technology first came from ACTV, but now OpenTV is playing.
Personal TV: This is the term coined for the personal video recorder (PVR) that records programming by title, timeslot, rating, actors, or theme. With full VCR functionality, the PVR can pause during a broadcast as content is cached on the disk, and has an ability to skip over commercials. If the PVR has a return path, it can support pay-per-view billing. Once a hard disk is full, the PVR records over older content. A replaceable hard disk, like a videocassette, is expected one day. Leading vendors are TiVo and Replay; others include Echostar, WebTV and Pace.
Internet TV: All the functionality of the Internet, especially Web browsing and e-mail, can be delivered to a TV screen. The visual quality of text is poorer on analogue than digital (video lines vs pixels). If a phone line is used for the return path, Internet access is temporarily suspended for incoming calls. Key players in this market are WebTV, Worldgate and Liberate.
On-demand TV: Any kind of programming can be offered on-demand, from movies to news. A video file server plays back content on request within a digital two-way system. Ideal for pay-per-view services, content can be seen whenever viewers wish. No more "appointment TV" schedules. Many see video-on-demand (VOD) as the "killer application" for iTV. Major vendors include DIVA, Concurrent, Oracle/Liberate and Seachange.
Play TV: Interactive video games on television encompass both single and multiplayer competitions. The Sega Channel was one example, with games downloaded over cable to the Sega player device at home. Another example is the NTN system, where bars and lounges nationwide compete head-to-head. Look for this to become a major factor in iTV popularity within three to five years.
Banking and retail TV: All the electronic banking and e-commerce applications on the Internet are being ported to the television. Interactive advertising will allow viewers to request e-mail brochures and actually order products on screen. The broad range of shopping services eventually may eclipse VOD as the killer app. Look to QVC and the Home Shopping Channel to lead here.
Educational TV: All the forms of interactive TV described above can be applied to educational services for every grade level, preschool to university. Distance learning for lifelong learners will reach new heights. Cable in the Classroom leads here, and the Educational Satellite Consortium is also a major player.
Community TV: Interactive TV lends itself to local community involvement: everything from town council meetings and electronic voting, to interactive Welcome Wagon services. Also, just as the Internet is host to evolving "virtual communities" of shared interest among scattered people, we will see the same on iTV with the addition of two-way video telephony to the mix. Look for the phone companies and IP cable telephony to promote such services.
Global TV: As the network builds out globally, look for increasing on-demand access to international programming with automated language translations. In a decade, we will see iTV come into its own as a mass medium for local-to-global cultural exchange.

DSTV`s offering consists of its decoder for downstream communication, and a separate keyboard and modem for upstream data. This allows it to offer a variety of services, including e-mail and e-commerce purchasing (dubbed t-mail and t-commerce, respectively), as well as other applications, such as a choice of different camera angles for Big Brother and interactive menus for the SuperSport channels.

"iTV allows a number of additional services that make the viewing experience more exciting and enjoyable, allowing us to satisfy many more subscriber needs. The launch also positions us to take advantage of future developments in the media arena," says Nolo Letele, CEO of Multichoice Africa.

Multichoice had the benefit of its relationship with cousin-companies M-Web and OpenTV (recently sold by Multichoice owner MIH) in which to develop its iTV offering. M-Web provides the Internet network for the system, as well as much of the content. Its online mall is the source for t-commerce vendors, while t-mail runs off of M-Web`s existing e-mail system. M-Web`s hosting and development of the SuperSport and Big Brother site also add to the package, with Web content available for television viewers.

The company first dipped its feet in the enhanced TV pool between 1997 and last year, introducing gaming applications and an enhanced electronic programming guide over that period. Applications like the enhanced weather channel and horoscopes proved popular with viewers, although Letele is cautious about getting too interactive.

"Our strategy in a nutshell is to provide rich and compelling content and experiences for the viewer, and provide contextual content and services for the viewer. The idea is to enhance, not distract, from TV viewing," says Letele. "We don`t want to scare people away - we trickle-feed our products for people to get comfortable with them before rolling out more."

OpenTV helped develop the software for the decoder, although the company never seemed to get its head above water as R&D led adoption by a significant period.

Speed kills

Economically running development ahead of the adoption rate has caused many an iTV provider to trip and fall, while staunch competition in some markets stunted the success of some of the platforms. Britain`s ITV Digital, owned by Granada and Carlton, was one of those hard-luck cases. Meant to compete with Rupert Murdoch`s BskyB, ITV managed to rack up a lb800 million bill before Granada and Carlton pulled the plug.

Interactive TV is the future of the world - it`s an extension of the Internet.

Sam Danon, CEO, TTS

The debacle was seen as a drawback for the UK`s aggressive digital TV strategy, which will see all television broadcasts in the UK running on digital by 2007. Digital TV and iTV go together like a horse and carriage, and with its deregulated telecoms market and bad weather, the UK is expected to be a leader in iTV.

By contrast, the US seems to be struggling with iTV. Not to be outdone by the Brits, the all-powerful Federal Communications Commission has set US television manufacturers the task of including digital tuners in all products in the next five years, but a problem still revolves around standards, with no one in the US quite agreeing on how iTV is to be delivered. Although the US has the advantage of broadband and cable, its confusion over standards almost halted progression. It is now favouring Europe`s Multimedia Home Platform (MHP) specification, built on Sun`s Java, as the preferred middleware platform, after a bit of a tussle with the OpenCable standard. OpenCable and MHP are now on track to integrate.

What Multichoice does is limited iTV based on technical limitations. Their decoder has limited technical capacity - it`s not a full computer.

Sam Danon, CEO, TTS

"A growing number of US iTV players have privately expressed to this reporter in the past year their growing exasperation over the ongoing lack of any middleware standard in America," says US iTV market commentator Ken Freed. "Historically, the US cable industry tacitly decided to follow the Microsoft Windows model of standard-setting: rule the market, then set the market rules. No one middleware vendor has been able to gain an upper hand in the US, but not for lack of trying, and the situation has grown untenable with satellite making strong market advances against cable in signing up new digital subscribers."

Apart from a lack of interactivity, and software developers always aiming for a moving target, the lack of standards has led to high set-top box prices. "The biggest hurdle is bringing down the cost of the advanced boxes themselves," says Don Dulchinos, VP of advanced platforms and services at CableLabs, a supporter of the OpenCable standard.

Monopolist`s dream

Such standards fights and competition in the market aren`t currently a problem for Multichoice. As the first and only to market with consumer iTV, it holds a monopoly. It sets the standards, and competition is sorely lacking.

The biggest hurdle is bringing down the cost of the advanced boxes.

Don Dulchinos, VP, CableLabs

But not for long. Local telecoms player Sentech is planning a move into the iTV market. Its Vivid technology already affords its some stake to the claim of iTV provider, and the alliance with InfoSat and Digitalmall.com offers the possibility of a feedback loop and content, giving it the option of providing services that will compete directly with Multichoice.

Vivid currently claims around 35 000 subscribers, predominantly in rural areas, and armed with its new multimedia licence, it should have little regulatory trouble. It will, however, have to compete with the DSTV and Multichoice brand and install-base, reminiscent of BSkyB vs ITV Digital. Vivid currently services a different clientele to M-Web`s predominantly white, suburban, dog and 2.5 kids market, so if it plans on competing for DSTV`s space, it will have to change its focus drastically.

What to expect

iTV is already showing signs of success in SA, with between 4 000 and 5 000 of DSTV`s interactive kits sold to the market over a period of six weeks. However, applications are still limited, e-commerce providers haven`t committed a great deal of product to their online catalogues, and a few hiccoughs are being ironed out.

The idea is to enhance, not distract, from TV viewing.

Nolo Letele, CEO, Multichoice Africa

Multichoice concedes that the lack of a caps-lock indicator on its wireless keyboard has caused confusion, while its Mr Delivery address recognition has also proved faulty, primarily because Mr Delivery`s database of postal codes seems to be incorrect.

Despite these problems, the future of iTV seems bright. The "killer app" still hasn`t been discovered - some say it will be t-mail, while others are punting sports-watching enhancements. Richard Fyffe, GM of Multichoice Africa`s iTV division, believes interactive SMS over the TV will do the trick. Meanwhile, Big Brother 2 and SuperSport are proving the most popular for interactive adoption.

Multichoice expects to roll-out more features for Christmas, and hopes that its shopping partners will come to the party with a greater variety of product in time for the shopping season. Other applications to expect include a Cartoon Network gaming system, using the Cartoon Network characters, and TV banking early next year. There is also discussion around more voting applications, and possibly a betting system. The company is also in early-stage talks regarding searchable recipes for the cooking channel.

<B>The players</B>

Local iTV contacts:
Multichoice
(011) 289-3000
Sentech
(011) 471-4400
Infosat
(011) 721-3800
UCE
(031) 508-2800
TTS
(011) 466-1803

However, those expecting to surf the Web through their DSTV decoders anytime soon should not hold their breath. DSTV is not planning to build a browser into its decoders anytime soon, citing poor visual quality and the invasive quality of browsing as reasons.

To make the interactivity even less of a distraction, we can expect "squeeze-back" technology to be used to make the picture smaller, while providing the interactive element around the frame.

The potential of iTV is, quite literally, only limited by the imagination of the folks at companies like Multichoice and Sentech. Initial roll-outs will test the market`s desires, and future applications will no doubt depend on what captures the viewer`s imagination.

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