Pay-Per-View Model Growing On Net

If computer maker Compaq Computer Corp. [NASDAQ:CPQ], networking concern Lucent Technologies Inc. [NYSE:LU] and especially Internet services company Agora Interactive Inc. have their way, World Wide Web users will pay to play games and even buy merchandise in the same way many cable television subscribers ante up for on-demand movies.

Agora Interactive said it developed the "first" full-service, full-feature personal computer-based platform for content and services that can be delivered on a pay-per-view basis. The new system would be available only to people accessing the Internet or online services via high-speed broadband technologies provided by the various flavors of digital subscriber lines (DSL), the cable TV platform or others.

Agora officials said the new system uses technology from both Lucent and Compaq to deliver services like arcade-quality video games, video conferencing, coupon tracking and vending, full-motion video advertising and even online merchandise sales.

Agora’s new system will run on a "state-of-the-art" Compaq-built PC, and run at speeds 50 times faster than a 28.8 kilobits per second (Kbps) analog modem connection. Lucent is contributing its LCV, or Lucent Collaborative Video, platform to the initiative. LCV is a low bandwidth, high broadcast-quality Internet protocol (IP) platform that provides users with up to 16 independent video windows on one computer "desktop," without the need for a multi-control unit.

With its new co-developed system, Agora said it is "planning on being the first to tackle head-on the coin-operated amusement industry traditionally devoted to non-PC based platforms." The strategy makes sense, because Agora designs, builds and maintains delivery mechanisms for e-commerce and games, including first-run PC games, to arcade venues.

The pay-per-use amusement industry is a $22 billion business, Agora officials said, and all three companies have devoted "significant resources" to this initiative.

Lucent’s Web site is at http://www.lucent.com. Compaq’s site is located at http://www.compaq.com. Agora Interactive is at http://www.agorainteractive.com.

(Contact: Andrew Prell, Agora Interactive, 502-585-5466)