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DATA MINE Jan. 14, 2000

It's the TV, Stupid
The Internet may be all the rage these days, but only about one-quarter of U.S. households are online. Thatıs a far cry from another communication device found in 98% of homes: the lowly TV. Now, with a raft of enhancements just around the corner, the boob-tube is turning out to be a hot new market for interactive media. For instance, by 2004, predicts Forrester Research, some 55 million U.S. homes will have access to electronic programming guides, a kind of TV Guide on the screen. Such guides are built into hardware -- digital set-top boxes or personal video recorders -- or delivered as a service via interactive-TV channels or the Web. And programming guides will carry a remarkable $3.2 billion in advertisements in 2004. By the same year, 24 million viewers will receive "enhanced broadcast" signals that let them respond to questions or shop via TV, while another 13 million will be able to surf the Net via TV. All those users add up to big bucks in ad revenues, online commerce, and subscription fees.

Projected revenues, by type, from electronic programming guides, enhanced broadcasting services, and Web-on-TV services, combined (in millions):

  2000 2001 2002 2003 2004

Advertising $269 $930 $2,989 $6,832 $10,971

Commerce $637 $1,696 $2,985 $4,646 $6,853

Subscriptions $822 $1,413 $1,550 $1,721 $1,912

DATA: Forrester Research
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