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Agenda Introduction Technology overview Key players and industries Outlook for the future Closing remarks

Definitions Internet-enhanced TV Interactive TV Personalized TV WebTV @Home, RoadRunner WorldGate Interactive TV Personalized TV

Internet-enhanced TV Set-top box Cable modem Alternative technologies WebTV relies on phone lines Cable modem @Home and RoadRunner -- like AOL, but on TV Bundled with cable service Alternative technologies WorldGate

Overlapping Technologies

Key Players: WebTV 1997 Microsoft purchase Hardware + three types of service at varied price points Recent deal with EchoStar for satellite Emphasis on ease of use, positioned as ISP 800,000 subscribers Moving into personal TV technology

Key Players: @Home Controlled by AT&T, merged with Excite, affiliated with TCI and Real Networks High-speed service over existing cable infrastructure 500,000 subscribers and growing Pricing structure varies by region Alliances with cable companies and network partners

Key Players: RoadRunner Joint venture of Time Warner Inc. and MediaOne Group; Microsoft owns 10% MediaOne subject of bidding war between AT&T and Comcast High-speed service over existing cable infrastructure 250,000 subscribers and growing Planning IPO

Smaller Players WorldGate -- Utilize 55M existing boxes Service delivered via cable lines to digital set-top boxes; work through cable providers at a lower price point than AOL or WebTV Wink -- 120,000 Wink-box viewers Agreement with CBS to provide enhanced TV through cable or satellite set-top box WebSurfer -- Cornering Canadian market Partnered with Intel, Netscape, Batra Group

A Web of Industries

How it works

Future Outlook Key Areas for Advancement of Internet TV Better bundling of product Convergence of technologies and industries Ease of use and speed Interactivity, Branding, Customization, Costs, Experience

Should Consumers Care? Enhanced television features Time shifting E-commerce Opportunity Simplification of purchasing Community Building Games, etc Education

Trends Users told spend 2 hours a day on WebTV - the numbers are climbing over time 57% sought out entertainment Web sites 56% want weather information. 53% seek news beyond broadcast channels 49% of them purchased at least one product online in the last 12 months -TV Online 4/99

Predictions Audiences will be fragmented Who is the customer? Digital cable will be the norm Direct competitor to satellite (EchoStar, DirecTV) Infrastructures potentially stressed Cable, Internet Web of industries become more tangled Integrated bundling

Questions