1. GL-eNestlé Interactive TV Two-way capability –Viewer can interact with TV: selecting a film, playing games, voting or providing other immediate feedback, banking, shopping, etc. –Over satellite, cable (if upgraded infrastructure), or IP Digital video recorders (DVR) –Also named PVR, personal video recorders –Capture and store video to a hard disk for later viewing –Viewers can control the video stream: pausing live TV, instant replay of scenes, and skipping advertising.

2. GL-eNestlé Interactive TV Threats –TiVo, a popular brand of DVR, reports that its users skip 70% of commercials –Jupiter Research estimates that ad-skipping could cost up to $8 B in TV revenue –almost 70 percent of advertisers say they believe that DVRs and video on demand will reduce or destroy the effectiveness of traditional 30-second commercials

3. GL-eNestlé Interactive TV Opportunities –Viewers access content for free but have to watch ads CBS innertube: broadband channel with Web specials and CBS reruns Philips patent application on technology that freezes channel during commercials –Viewers pay to watch shows without ads CBS ondemand: shows to download at $1, 24h to watch –Viewers volunteer to receive relevant commercials for products or services they are interested in TiVo ProductWatch: Kraft offers 20 different cooking videos and General Motors has detailed presentations of its vehicles