Day 1

Starting Tuesday and running through Wednesday, the event featured Josh Bernoff, principal analyst Television from Forrester Research, who modified his standard speech with a new theme: "Plain Old TV Will EVOLVE into Smarter Television" (through the use of smart set-top devices, of course). Bernoff outlined Forrester's research:

• By taking control of the TV signal, DTSBs will change TV behavior.

• Electronic Program Guides will be near 100% penetration in U.S households with smart devices by 2005 (And GEMSTAR is the company to watch!) Personal Video Recorders will be available in 50% of homes.
  
  
• Viewers love interactive video programming interfaces. For example, Wink conducted a test and they saw a response rate on offers at 1% to 3%. 42% followed through on these offers. 50% of all WebTV Plus boxes have registered with (and played) interactive "Jeopardy!"
  
  
• By 2002, walled gardens will dominate ITV.

• TV players will fight over interactive dollars. Using the idea of selling Jennifer Aniston's (or is it Anniston-Pitt's) sweater, Bernoff talked about how all the parties (Talent, Producers, Network, Affiliates, Cable/Satellite, and Interactive Services such as Wink) will have to make agreements on how to split the revenues.
  
  
• By 2003, interactive content will arrive
• Networks will split revenues
  
  
• Networks will insert data into content
  
  
• ITV content will enable new behaviors.
  • Commerce enabled-programming
  • Refined searches
  • Custom content assembly
  • Layered commercials (including target advertising)
  • ITV will make up for plain old TV declines in revenues
    
    
  What it all means:
  
  
  • Re-usability drives content.
  • TV develops a split personality.
  • The Big 4 networks will become banks and promoters.
  • Click rates, NOT audience size, will determine value of programming -- [itvt] disagrees with this analysis. We believe the quality of the community wrapped around a given program will determine value. Click through rates will always be icing, but will never determine total value as Bernoff seems to suggest. -- Tracy Swedlow
  • Networks set metadata standards
  • Data makes TV targetable
  • Advertisers target individuals by households not content.

  Speakers and attendees agreed that it's a WIDE open playing field out there. ITV is happening and evolving now. And to be successful, ITV must remember the KISS Principle (Keep It Simple Stupid)!

  Day 2
  
  Jack Myers, president of Myers Reports Inc., opened Day Two continuing the themes of the prior day. He added that we are moving from the Information Age to the Relationship Age -- an age where media will help reconnect society. Myers proposed the following 10 New Realities of the Relationship Age:

  • Technology changes all the rules.
  • All competitors are EQUAL.
  • Equality + Efficiency = Commodity pricing.
  • Anyone can win.
  • Brands are the building blocks of the New Winners.
  • Differentiation.
  • Relevance must be established and validated.
  • Effective communications separates winners.
  • Sustained brands consistently fulfill expectations.
  • Accountability is king.

  Rahul Chakkara (interactive marketing manager) of Proctor & Gamble Europe had the most telling comment in my opinion. He said P & G is doing interactive ads in Europe because they have an existing infrastructure there. Until there is what P & G calls a "playing field" set up here in the US, they are NOT interested in doing ITV here. When they feel it does arrive, they'll be playing!

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