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10/03/2000

IDC Sees an Interactive TV Revolution

FRAMINGHAM, MA – OCTOBER 3, 2000 – Massive improvements to the infrastructure for TV-centric information appliances over the past few years and lower costs per home for interactive service deployment will foster an interactive TV revolution. IDC forecasts U.S. NetTV unit activations will increase tenfold, from about 1 million in 1999 to more than 10 million in 2004.

“The opportunity for a new type of device that provides consumers with interactive features and that supplements or even replaces PCs is upon us,” said Mary Joy Scafidi, senior research analyst for IDC's Consumer Devices program. “The bandwidth is in place; the content and price points are in place; and the system capabilities are in place to successfully deliver interactive Internet solutions.”

According to IDC, the success of NetTV is not relegated just to the United States. Although U.S. unit activations are expected to consume more than 50% of the worldwide share, NetTV will have a global market presence. Worldwide activations are expected to increase from 6.1 million in 1999 to 19.5 million in 2004. This growth means more than 81 million NetTVs will be installed in 2004.

Many factors drive IDC’s prediction for a NetTV revolution. One is consumer demand for shared new media entertainment and information services. The other is the popularity of TV. Despite new alternative mediums such as the Internet, research shows that the amount of time in front of the TV is increasing. In the United States, households watch more than 50 hours of television per week. These factors make NetTV the leading vehicle for information delivery.

“The interactive TV market is poised to be one of the largest non-PC platforms for interactivity,” Scafidi said. “To be successful, vendors need to provide a complete solution to consumers. If this is done, NetTV will experience huge success.”

Information like the above can be found in IDC’s report NetTV Market Forecast and Analysis, 1999–2004 (IDC #B22666). This report provides a comprehensive analysis of the NetTV market, including an analysis of the current delivery models. The consumer opportunity is analyzed based on IDC surveys and focus groups, and forecasts are provided. To purchase the report, contact Patrick Steeves at 1-800-343-4952 extension 6787 or psteeves@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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