Strategy Analytics: Enhanced TV and Interactive Games to Dominate $1.8 Billion Interactive TV Market; 72 Million Europeans Have Access To Interactive TV

Business Wire, Sept 10, 2002

Business/Technology Editors

LONDON--(BUSINESS WIRE)--Sept. 10, 2002

The Broadband Entertainment Strategies service of Strategy Analytics has released the results of its latest research on the European interactive television market. This report, "Interactive Digital TV Market Forecast - Europe," reveals that consumers will spend $92 million on interactive TV applications and services this year, an increase of 121 percent. By 2008, annual revenues will reach $1.8 billion. Enhanced television applications, such as viewer voting and show participation, will account for 48% of the market, while interactive games account for a further 31 percent. Email and messaging will also generate significant revenues.

This report assesses the outlook for digital and interactive television services across 16 European markets. On a country-by-country basis, it describes current levels of usage of digital and interactive television, revenue streams and market segmentation, forecasting demand to 2008.

"Interactivity is slowly but surely becoming an accepted part of the television landscape," notes Nick Griffiths, Director, Broadband Entertainment Strategies, Strategy Analytics. "But the key to success is to use it to create better television, and to forget about surfing the Web on TV. Internet TV is now recognized as a failed concept."

The research found that 16 million Europeans are now using enhanced TV applications, such as background information, online voting, quiz show participation and camera angle selection. Overall, interactive television will be available to 31 million European households by the end of 2002, creating a potential audience of 72 million viewers. -O-

                European Interactive TV Market Forecast

    Consumer Revenues ($M)            2002          2008

    TV Messaging/Email                 10            234
    TV Betting/Gambling                10             64
    Interactive TV Games               36            448
    Enhanced TV                        35            712
    Other iTV revenue                   1             26
    TOTAL INTERACTIVE TV               92           1484

    Source: Strategy Analytics' Broadband Entertainment Strategies
service

About Strategy Analytics

Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com