Gartner Says TV Portals Are Tuning in to Interactive TV; New Report Examines Revenue Potential for Portal Services on Interactive TV

Business Wire, May 31, 2000

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--May 31, 2000

Spurred by the success of several Internet portals, television portals are being developed to leverage off of the growing interactive TV market, according to Gartner Group, Inc. (NYSE:IT and ITB). Gartner predicts that TV portals in the United States will generate $4 billion in revenue by 2004. This revenue will come from advertising, subscriptions and commissions on TV-commerce sales. Sales of goods and services through TV portals will reach $10.7 billion in 2004.

"Inspired by the sight of black ink at the bottom of balance sheets for companies such as America Online and Yahoo!, a great deal of attention is now being paid to the possibility that the portal formula can be duplicated on other interactive platforms, such as digital cell phone and interactive TV," said Mark Snowden, senior analyst for Gartner's e-Business Services with responsibility for the e-Home: Media and Entertainment program. "Like Internet portals, TV portals will have a range of services that attract large viewing audiences and also take advantage of niche opportunities."

The TV portal market is projected to generate $11 billion in revenue over the next five years, and this will represent opportunities for a wide variety of companies. Gartner estimates that revenue opportunities in the TV portal market will accrue from various sections such as streaming video on demand, electronic program guide (EPG), non-EPG information services, TV commerce and Internet access and e-mail.

"As two-way digital cable plant upgrades continue, as services are introduced in more areas, and as TV viewers become more accustomed to interacting with their TV, we expect that TV portal revenue will double the level of 2004 by 2007," Mr. Snowden said. "The TV portal is an aggregation of products and services from a wide array of companies. The business relationships with all of the contributors can range from licensing deals to outright ownership. The TV portal itself can be an initiative on the part of each cable system operator, or it could be a separate business entity."

Additional information on the TV Portal industry is available to subscribers of Gartner's e-Business Services. These programs are part of a wide range of GartnerGroup services examining the e-business industry. These programs are designed to help senior executives, strategic planners and investors capitalize on emerging opportunities by providing research and analysis on electronic commerce and Internet marketplaces. Additional information on these programs is available on Gartner's Web site at http://www.gartner.com/public/static/home/ggebiz.html. To subscribe to these services, please call 800-419-DATA or 408-468-8009.

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