Interactive TV, take two: With a trio of deals, communicating via tube is back

Once derided as too costly, interactive TV appears to be gaining new steam. Just last week, GTE agreed to use ADC Telecommunications' AccessPoint universal media access system, which will allow GTE to transport MPEG 2 video over ATM networks. And FVC.com and ViaGate announced what they claim to be the first successful trial of IP- and ATM-based two-way digital video. Based on very high bit-rate DSL, the technology allows carriers to deliver two-way video applications such as video calls and conferences over copper.

Not to be outdone, iMagicTV announced its third partnership this year aimed at making interactive TV affordable and convenient for carriers to offer. iMagic, which is partially owned by NBTel, signed a joint marketing and development agreement with Sun Microsystems, said Marcel LeBrun, president and CEO for iMagic.

The agreement merges iMagic's DTV manager software with Sun's scalable platforms and open software, which features a Java-based architecture.

Under the deal, the companies will jointly market the products that each currently sells, including SoftTV, a new product that iMagicTV is expected to launch this week. An extension of the DTV manager platform, SoftTV delivers interactive TV capabilities to the PC, giving end users the option of using the PC as another entertainment device.

"You can now deliver television to the PC - all in software with scalable video and all registered and licensed," LeBrun said. "And it's not just streaming media over the Web. It actually allows service providers to deliver licenses."

The agreement also calls for the companies to develop future interactive TV solutions. iMagic plans to use Sun's connections in the dot-com industry as the companies develop enhanced TV or two-way channel capabilities, LeBrun said.

The next phase of interactive TV will bring Web content to the TV, LeBrun said. "You could turn to channel 99 to get e-mail or channel 50 could be a music jukebox with 100 different music [stations]."

Last week's deal with Sun also adds another component to the plan iMagic implemented earlier this year when it signed partnerships with Motorola and Oracle.

The Motorola deal enables Motorola's Streamaster technology to work with iMagic's DTV Manager, and the Oracle agreement integrates Oracle's Video Server software. Oracle's software runs Timeless TV - a solution that lets consumers record TV programs.

"The partnerships you see are the necessary pieces you have to put together to become a video provider," said Josh Bernoff, a principal analyst with Forrester Research.

It's become clear that the total bundle includes video, telephony and Internet, he said.

"If telephone companies are actually serious about getting into the video business, then iMagic will do fine and make a great partner for them," he said. "If not, iMagic will fail. We have to wait here for the elephants to make up their minds which direction they're going."