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Tuning in Interactive TV

The way you watch television is about to change dramatically. Or is it?

Companies ranging from Microsoft Corp. and AT&T to America Online are rolling out new services that provide a glimpse into the future of television. Take a look at some of the services you won't be able to live without ... and some that should remain in the lab.

The Big Picture

Almost all of us use one of the earliest forms of interactive TV: the remote control, a so-called "application" that many can't live without. Soon, we'll have access to an even larger array of interactive TV services, including video on demand (VOD), Internet access over the TV set, personal video recording, and TV-based chat. Each application will inject an element of computer technology into your TV set delivered by your cable TV operator, satellite TV provider, and retailers like Circuit City and Best Buy.

But which services will be must-haves? And what will they do for you? Before we try to answer those questions, let's look at how we already use the TV set and the computer.

Watching TV has historically been a "lean-back," shared experience. That is, we sit six to 10 feet away from the set, and often watch it with others. The computer, on the other hand, is a "lean-forward" device. We interact with our PCs and MACs from distances of one to three feet, and rarely share it with anyone else.

Why does that matter? Because many interactive TV services force us to mix these behaviors, like leaning into the TV set to surf the Web. But the best applications won't require us to dramatically change our behavior. Instead, they'll combine the best elements of the computer to enhance our lean-back, TV-viewing experience.

That's why we're keen on VOD and personal video recording. Web-focused, interactive TV applications will find their niche, but it may take some time.

AOLTV

TiVo PVR from Phillips

WebTV Home Page

Video on Demand

Think of video on demand as pay-per-view on steroids, giving you access to hundreds of movies, from classics to new releases, through the remote control.

True VOD will offer full videocassette recorder capability -- pause, rewind, slow motion and the like -- for about the price of renting a tape from Blockbuster, but without the late fees.

Sound too good to be true? For a select few cable TV subscribers testing Diva's and SeaChange's services, VOD is a reality today.

How VOD Works

Videos are digitized and stored in a large server at the cable "headend" -- the place where cable TV signals originate. When you request a movie, it's streamed to you over the cable network to your home, processed by the digital cable set-top box connected to your TV set, and then presented on the screen.

For our money, VOD will be a winner for everyone once the technical bugs are worked out.

Personal Video Recording (PVR)

PVR services represent the next stage in the evolution of the VCR, delivering computer hard-drive technology to your TV set. It also will allow you to pause and rewind live TV programming, as well as let you record programs at the touch of a button.

Today, three companies offer the service: TiVo, ReplayTV and WebTV. The drawback, alas, is pricing.

Each service's hardware costs from $200 to $650. Then you could pay as much as $9.95 for monthly service. That will begin to change as cable and satellite TV companies integrate these products into their set-top boxes, which will drive down costs and simplify installation.
How PVR Works

TiVo, ReplayTV and WebTV each has a hard drive with huge capacities ranging from nine to 14 gigabytes to store incoming TV signals. In normal operation, signals are passed to the TV set with a slight delay. The hard drive can store about 30 minutes of programming, which can be summoned up each time you hit the rewind button. While you watch the replay, the system keeps recording the live action so you won't miss anything. Some services let you select programming that you'd like to record in the future.

We've been amazed by the excited reactions of users who've tested PVR systems. It takes time to get used to them, but the systems are as central an element of the TV-viewing experience as the remote control, according to the test subjects. They especially like the fact that they never have to miss a favorite show, and that they can build their own programming library, thanks to PVR. Again, as soon as prices begin to fall, we look for mass acceptance.

Web on the TV

Several companies are marketing services that promote World Wide Web usage over the TV set:

• WebTV, a pioneer launched in 1995, counts more than 1 million subscribers.
• AOL recently launched AOL-TV, which requires an additional set-top box that costs $250; monthly service runs $14.95.
• AT&T will soon roll out its "showcase cities" initiative, which will include Web-on-the-TV services developed by Microsoft. AT&T's service will be free to digital cable subscribers.

These services also offer users the capability to play along with TV shows like Wheel of Fortune and Jeopardy; use e-mail and chat services; and access enhanced interactive program guides.
How it Works

Each system employs servers linked to the cable TV or local telephone company plant to package Web content and deliver it to your television set through a process called "transcoding." It reformats text and graphics so they "fit" on to the TV set, whose size and resolution differs from a computer's. Plugged in, users can switch from the TV to the Internet at the touch of a button. In many services, the TV screen shrinks to a small corner of the screen while you surf the Web.

After testing several services, we've generally found that they deliver a less-than-compelling TV-viewing experience. They often require remote, or "IR," keyboards, and can be operated by only one person at a time. As a result, Web-on-the-TV services interfere with shared-viewing experiences. What's more, high costs, the limited amount of Web content designed for the TV set, and slow delivery over telephone lines will probably impede the services' acceptance.

Many of us surf the Internet on our computers while we watch TV, but do a lot of people want to do it over the same device? We don't think so. What do you think? Let us know.

Other Services

Interactive TV players of all stripes are rushing to market. Some of them, like Wink, give users the capability to request more information about products featured in advertisements. Other services, like ACTV, give viewers several camera angles during sporting events. Who knows what's on the horizon? The only thing you can be sure of is that a lot of companies are investing significant amounts to change the way you use the TV. Hold on to your remotes! This promises to be interesting.

Stay tuned for the latest developments, and send us your reviews and experiences with any of these products and services.