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do like ITV gizmos.
Study finds strong response after demonstrations
By David Everitt
Anyone keeping tabs on the media scene has noticed that the magic of interactive TV has still not cast its spell on too many people.
Video-on-demand has made some progress–true–but other advanced TV services remain a novelty at best, even the much-hyped personal video recorder.
The problem, according to a recent study, is not a lack of consumer interest, contrary to popular belief.
A survey conducted by the Cable & Telecommunications Association for Marketing purportedly reveals that most TV viewers are intrigued by interactive services, and not just video-on-demand.
If correct, the study suggests that smart marketing could go a long way toward making interactive TV a reality.
CTAM measured the respondents’ intent to purchase or use interactive services, based on eight services that were demonstrated.
Of the digital-cable subscribers, 79 percent were somewhat or very interested.
Of course, you’d expect early adopters of digital cable to respond positively to this kind of TV, but it turns out that 55 percent of analog TV viewers were also interested.
Char Beales, CTAM president and CEO, thinks that the study’s methodology was a key factor.
"Most of the numbers so far have been based on concept tests," she says. "But in our study we showed the people demonstrations of the services.
"What’s also significant," she adds, "is that we targeted people who actually pay for TV in their homes. Other tests often target people who use PCs."
Not surprisingly, video-on-demand ranked at the top among services that got the most favorable response. Something Beales found to be more surprising was the response to PVRs.
"PVRs were almost tied with video-on-demand in terms of consumer interest. What’s interesting there is that people already understand pay-per-view, so video-on-demand is not much of a stretch. But the PVR is still a new concept to most people, and still they responded well."
Beales attributes this to the demonstrations that the consumers saw.
"Reading about the PVR is a totally different experience. When they see it, they get it–‘Oh, that’s what it does.’ "
Interactive program guides scored well for the same reason, she says. "Four years ago, when the cable industry started to sell digital services, they thought IPGs were exciting–‘Yeah, IPG, let’s sell that.’ But it fell on deaf ears because people really didn’t understand it. Then, once people bought digital cable, the IPG became the most popular feature."
According to the study, nearly half of the analog-TV viewers also gave IPG a high rating after seeing a demonstration. Beales believes that the appeal of this feature could help cable operators sign up new digital customers.
Video-on-demand, PVRs and IPGs have all been well-publicized services, but other, less-promoted features also received good responses.
The ability to pull up local information on their TV screens interested 55 percent of digital subscribers and 37 percent of analog viewers. This electronic information would include local sports, news and weather, and can be accessed pretty much the same way you’d get hotel information on your hotel TV.
Interacting with a program interested 53 percent of digital customers and 35 percent of the analog crowd. Among the not-yet-digital people, the ability to order products, coupons and catalogs did especially well. Forty-eight percent indicated an intent to use this feature once they upgraded their TV service.
If the key here is giving people a chance to see how interactive TV works, what would be the best way for cable operators to provide demonstrations of these capabilities?
"By continuing to do what has generally been done in the past," Beales says. "By making arrangements with local stores or malls or fairs. Of course, they have to back it up with marketing elements."
The use of on-air spots is one recommendation she makes, along with setting aside digital cable channels devoted exclusively to explaining interactive capabilities.
"Traditional print media can also be useful to get the word out, to tell people that cable operators have got something new for them. For video-on-demand, perhaps ads on the movie page of local newspapers. For something like PVR, the best place to market it might be an outlet like Circuit City, where people are already interested in buying electronics."
February 5, 2002 © 2002 Media Life
-David Everitt covers technology for Media Life, writing from Huntington, N.Y.
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