Getting personal: Interactive TV providers move toward customized content

An improved reputation earned interactive TV a place in multiple booths at the National Cable Television Association convention in New Orleans last week. The technology appears to be making major strides in its return to the industry.

Working to overcome the bad rap it acquired about 10 years ago, interactive TV is getting a new boost through improved technology and consumer education. Companies behind the technology have "had a chance to see what works and what doesn't," said Brian Sweeney, senior vice president of interactive and Internet strategy for Cablevision Systems.

Also, unlike interactive TV of the past, "the new vision of enhanced TV is tied to television as you know it," said Allan Thygesen, executive vice president of sales and business development for Wink Communications, a company that adds interactive data to the programs consumers receive via cable, satellite and terrestrial connections.

Technology creators also have found a hook for their products: personalization of the TV experience.

"Personal television is about television on my schedule, and that is increasingly compelling to people who watch TV," said Dan Levin, chief technology officer and senior vice president of corporate strategy for ReplayTV. ReplayTV's set-top boxes allow cable and satellite TV consumers to record and view at their leisure up to 30 hours of TV programs.

There is no doubt consumers like TV, but they are overwhelmed with choices, have a difficult time finding shows and are dissatisfied with inconvenient schedules, Levin said.

But customized TV is more than viewers watching programs at their convenience. Several personalized applications are now available, including the ability to access, on demand, an instant replay from a sporting event, Levin said.

Personalization also is a key aspect of interactive advertising, which has become known as television commerce, or t-commerce. For example, Wink "enhances 60-second commercials" with various t-commerce offers, said the company's President and CEO Maggie Wilderotter.

Via a remote control and an icon in the corner of their TV screens, Wink viewers can access more information about products or make purchases. Consumers also can respond to offers for coupons and free product samples.

Specifically, viewers can request a brochure for a car or complete a quick survey to earn a product coupon, Wilderotter said.

Wink plans to use its capabilities in regular programming through partnerships with 19 networks, including the top four broadcast networks - ABC, CBS, NBC and FOX. The company last week announced deals to deliver enhanced TV and t-commerce on VH1's "Behind the Music," "The Tonight Show with Jay Leno" on NBC, TBS Superstation's "WCW Thunder" and TNT's "WCW Nitro" programs. Customers will be able to purchase CDs of featured bands and wrestling-themed products, Wilderotter said.

Wink also plans to partner with national retail brands and offer items such as books, videos, CDs and toys on various shopping channels. Capitalizing on personalization, the company will use information collected from consumers to regionally customize offers, Wilderotter said.

"Early statistics on take rates are a good indication that consumers are not afraid when they're watching a commercial to click through and get samples, brochures, catalogs and actually buy products," she added.

For consumers, the customized viewing will be the most compelling aspect of interactive TV, said Craig Enenstein, vice president of business development and strategy for Liberty Digital, the interactive TV and Internet affiliate of Liberty Media. Liberty Media recently purchased a 5% share of Primedia, which is the corporate parent of Telephony.

Interactive advertising and t-commerce have been very successful overseas, Enenstein said. A personal TV platform will allow multiple systems operators to create new services, which will help keep subscribers and attract new ones, Levin said.

That's the track Cablevision plans to take, Sweeney said, adding that the company is building out its digital platform and driving new revenue streams with applications such as enhanced TV, video-on-demand, t-commerce, cross-platform messaging and interactive content and services.

"We need to teach people to interact with their television sets in new ways," Sweeney said.