In the UK Internet TV is Hot,
Digital TV is Not
In the December issue of MWT, we reported brisk sales for WebTV’s in the States
during the holiday season. The on-surge of new users, Micorsoft reported, even caused an
overload to the system for a short spell. This type of TV access to the Internet is
spreading to Europe.
Powernet, part of the FreeCall Group in the UK, has unveiled the OnTV Internet set-top
box (STB), a UKP299.99 (US$500) unit that interfaces between a standard TV and a phone
line to give Web browsing and e-mail facilities on the Internet.
According to Jim Rothnie, a spokesperson for the company, an infrared keyboard is
available for the OnTV box as an optional extra (cost UKP70 — US$110).
"The basic package includes an infrared remote control zapper that features a
number of facilities. Our unit is one of the first to actually ship in the UK and includes
word processing as a standard feature," he said.
According to Rothnie, while many other vendors have been talking about shipping a Web
STB unit, very few units are actually in the shops in the UK. "The OnTV is being sold
through multi-level marketing in the UK, and Powernet is offering Internet access
subscriptions for UKP15 (US$25) a month," he said, adding that the company is now
looking for European distributors for the STB unit.
At the heart of the OnTV system is the NetStation unit, which has an integral 33.6
kilobits-per-second (Kbps) modem and a smart card reader as standard. The smart card
supports the user’s ID and Internet subscription.
Ian Carey, Powernet’s chief executive, said he believes that "OnTV means that
consumers no longer have to spend UKP1,000 on a computer, plus the necessary software and
accessories, to get connected to the Internet.
"Our product’s simplicity will broaden access to the Net and the use of a
remote control will make people feel much more at ease than dealing with a keyboard,"
he claimed.
"This product is set to revolutionize the way the consumer gains access to the
Internet and it will demystify the whole issue once and for all. It will also reduce the
cost of getting connected and I believe that has to be viewed positively by business and
public alike," he added.
Rothnie, meanwhile, said the reason why Powernet has been able to launch the OnTV STB
unit through retail outlets so quickly in the UK has been because of the multi-level
marketing (MLM) aspect of its distribution.
"MLM is losing the stigma it once had, and is starting to become a method of
distributing high tech products like the OnTV," he said.
Powernet’s Web site is at http://www.powernet-int.co.uk.
(Contact: Powernet 0500-831831)
Pace Micro Technology, the company behind the millions of satellite decoders now
installed around the world, has come out with the results of a survey on digital TV that
will have TV executives crying into their stock option portfolio. Despite all the hullaboo
surrounding digital TV, Pace has concluded that the technology is something of a no-no in
the short term, mainly because of the cost issues.
Pace claims to have conducted the industry’s first survey of consumer attitudes to
digital TV, taking opinions from 1,800 people scattered all ages, social classes and
background in the UK. The main appeal of digital TV, the company claims, is the improved
sound and pictures, as well as a better choice of programs, plus instant access to data
about the pictures they are watching.
Despite what TV executives might think, Pace claims that only 10 percent of its
respondents said that new services were the main reason to go for digital TV. Features
such as easy access to local information and services, local travel information (56
percent) and education plus training (52 percent) are the main drivers.
Interestingly, while companies such as BSkyB in the UK are talking in terms of a UKP
300 (US$ 500) and existing European companies are offering decoders at roughly 30 to 50
percent more than this figure.
Pace’s research concluded that a price point of just UKP 199 (US$ 340) was more in
line with people’s expectations: 41 percent of those surveyed indicated that this
price was about right.
The digital TV proponents also appear to have got their sums wrong when it comes to
gauging demand for interactive services. Forty percent of those surveyed said they would
use interactive digital technology (using telephone lines for feedback) for matters such
as voting in government elections.
Equally surprising is the result that more than a third (36 percent) of respondents
were interested in home shopping through future digital TV systems. Malcolm Miller,
Pace’s chief executive, said that the results of the survey clearly show the
potential for commerce on TV before interactive TV has even been launched in the UK.
"We are not surprised to find that books, music and video are the goods most
likely to be purchased through the TV set, as they all lend themselves to being sampled
via the TV," he said.
Only eight percent of respondents to the survey said that they were interested in pay
per view systems, such as the recently launched Sky Box Office pay per view (PPV) movie
system. These same respondents also said that they viewed PPV as the only reason to go
digital.
(Contact: Pace Micro Technology +44-1274-532000)
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