EventReview

New Orleans, Louisiana
January 20-23, 2003

[itvt] Issue 4.94 Part 2 2/11/03

By Susan Bruce for [itvt]

NATPE 2003, held in New Orleans for the last time before it heads to its new Las Vegas home, was both a let-down and a boon for independent producers. The event, which used to be quite overwhelming in size, sizzle and celebrities, was somewhat underwhelming this year. Following last year's trend, the pizzazz was hard to find, there were fewer exhibitors, and many companies opted to exhibit in hotel suites scattered around town. However, many producers reported that the smaller numbers made for easier access to executives and better networking, resulting in a very successful event. And, as always, the after-hours parties served up fun and conversation with new and old friends.

During the first 2 days of sessions, industry leaders acknowledged the stagnant economy, skyrocketing programming costs, and consolidation on the content buyer-side as current challenges. On the positive side, programming execs, particularly those from cable networks, were upbeat about the opportunities for independent producers to develop new, creative programming, particularly for niche markets.

On Wednesday, interactive TV was the subject du jour and was the focus of the event's last 5 sessions. The stuff of interactive TV--platforms, applications and business models--was new to most of the audience, which was made up primarily of independent producers, and a few buyers, programmers, and MSO representatives. A comment by one producer in the audience during a Q&A session summed up the frustration many traditional producers felt during the day: "I feel like a dinosaur walking among these panel members showcasing their ITV programs."

The comment was a play on the name of an application, "Walking with Dinosaurs," that was presented during the session entitled "Producing for Interactive TV." During that session, which was moderated by Brian Seth Hurst, CEO of The Opportunity Management Company, panelists demo'd some of the 78 submissions for the 2002 Emmy Award for Outstanding Achievement in Interactive Television (note: last year was the first time that the Emmy's included such an award), and discussed their objectives and production processes. HBO's "Band of Brothers" ITV app, which won the Emmy, was demo'd by its creator, Karen Lennon, CEO of Beyond Z. The demo showed how the application (which was for the AOL TV platform) featured 2 modes, which responded to different styles of viewer behavior. A "passive mode" enabled the viewer to watch the show linearly with enhanced graphical overlays that were pushed to the box, while an "active mode" presented a menu of choices (e.g. character summaries, a WWII timeline, and information on military ranks) that the viewer could access at any time during the program. Lennon stressed that interactivity had to be strictly relevant to the programming if it is to provide entertainment and informational value to the viewer. Responding to a criticism from a member of the audience that interactive features can interrupt the viewer's connection to emotion-rich programming, Lennon responded that many viewers had reported that receiving the enhancements added to their experience and understanding of the series (which had 10 episodes and featured a complicated storyline with multiple characters).

Brainstorm Communications CEO, Stephanie Otto, demo'd an app her company created for Showtime, which Otto claimed was the first network to provide contextual, single-screen interactive content for all its programming on a 24/7 basis. She explained that Brainstorm created dynamic software templates for the content, and said that the greatest challenges were 1) having to produce implementations for all major middleware platforms (e.g. Liberate, OpenTV, Wink), and 2), in the early days post launch, ensuring that the content was integrated with the broadcast feed under tight timelines.

John P. Roberts, SVP of Interactive at the Game Show Network (GSN), talked about his plans to grow the amount of "appointment" interactive programming offered on the channel to 12 hours a day. Currently, 5% of GSN's audience use its 2-screen, synchronized, Internet-based ITV applications, which allow viewers to play along with a show's contestants (the names of high-scorers are displayed on the air and on GSN's Web site). In addition to presenting viewers with multiple-choice versions of the questions asked on a show, GSN's ITV apps, which were developed by GoldPocket, allow them to answer random questions about sponsor products for extra game points or extra chances to enter a sweepstakes (note: GSN charges sponsors an additional fee if they want to have their products featured in the ITV app). Roberts, who revealed that GSN also plans to roll out single-screen apps, said that the biggest challenge he faces is the 2-3 week timeframe within which his team must develop each new app.

Rosemary Danon, VP of the interactive services group at Ascent Media (formerly Liberty Livewire), said that her company believes ITV is such an important emerging platform that it has established digital services groups at all its locations worldwide and has made ITV an integral part of the production process. Danon, in fact, predicted that many traditional production companies and ad agencies will soon be creating new positions to drive development of interactive apps. She recommended teaching producers about ITV development no matter how intimidated they are by the technology. Noting that there are over 27 million households outside the US currently using ITV, she recommended taking a vacation to Europe and staying in a hotel to check out the interactive services there.

Brian Brunius, a producer at WNET-TV in New York, showcased single- and 2-screen ITV versions of the 10-episode animated adventure series, "Cyberchase" (co-produced with PBS Kids), which featured interactive problem-solving. Brunius said the same writers were used for the original and interactive versions though, unfortunately, the series was well into production when interactive development began. Often content changed, which necessitated last-minute changes to the interactivity--the fact that team members were located in different time zones made the process even more difficult. One unique feature of the program's accompanying ITV apps was that they allowed viewers to select any of the 4 main characters as an interactive guide: each character was optimized for a different learning style. The biggest challenge, Brunius said, was developing for multiple middleware platforms; however, working with a technology-savvy application developer, Extend Media, had made the process easier. Nevertheless, with the experience of adding interactivity to Cyberchase under its belt, he said, WNET will probably produce future ITV apps in-house. According to Brunius, the station's research showed that the interactivity enabled greater user understanding of educational concepts and a richer and more enjoyable experience.

Moderator Hurst ended the session by announcing that the call for entries for the 2003 interactive Emmy award will be issued by the end of April, and that the deadline for submissions will be May 31.

In a session entitled "An eTV Pitch Meeting: Making the Case for eTV--Literally," Peter Pinch, technology director for enhanced content at WGBH, and producer Tim Halle (also of WGBH) showcased an enhanced-TV prototype for PBS Kids' popular series, "Arthur." Providing games, chat, VOD and other features, "eArthur," as the ITV app was called, was designed to support the show's goals of teaching literacy and social skills. According to Pinch and Halle, consumer testing revealed that the ITV app increased the amount of time children spent with the show, and expanded its appeal to older children. PBS has apparently concluded that children will be more willing to watch if interactivity is available, and that this will result in a longer syndication life.

TV Land's Michael Gaylord, meanwhile, demo'd his network's ITV prototype for the classic sitcom, "I Love Lucy" (note: the prototype was developed in collaboration with ZeTools, Digital Media Center, Liberate, Autonomy and Sun, under the auspices of the American Film Institute's Enhanced TV Workshop). He also mentioned that TV Land is exploring introducing an "Interactive Thursday's" programming block. Older, well-known series are ideal candidates for interactivity, he observed, because viewers know the episodes well and enjoy testing their knowledge of them via interactive trivia questions, factoids and games. According to Gaylord, TV Land believes its interactive shows extend its brand for affiliates, increase viewership, and enable advertisers to create 1-on-1 relationships with consumers. Almost half of TV Land's audience has high-speed Internet access, he said, so the network is focusing on 2-screen ITV applications.

Marcia Zellers, director of enhanced TV at the American Film Institute, moderated a panel entitled "An eTV Pitch Meeting: Making the Case for eTV -- Literally." The panel was comprised of Michael Davies, executive producer of "Who Wants to Be a Millionaire," Dave Houssman, VP of corporate development at MSO Charter Communications, and Alan Sternfeld, SVP of program scheduling and acquisitions at cable network, Lifetime. During the session, Houssman voiced a concern that seemed to be shared by many NATPE attendees whenever the topic of ITV was raised: "Do we have a broad enough platform yet for ITV?" Sternfeld and Davies argued that a "killer app" is needed for each genre of programming, and that when these killer apps are discovered, ITV technology will be a "must have." What these killer apps will be, though, remains to be determined: Sternfeld observed that Lifetime's market research indicates that viewers dislike things that clog up the screen or interrupt the viewing experience. However, he said, many of the network's programs are themed around self-help, and interactive TV enhancements could be a useful way to provide viewers with information about where to go and what numbers to call. In the course of the discussion, tcommerce and enhanced live events (because they draw such large audiences) were also suggested as possible killer apps. One thing all seemed to agree on was that users need to be able to turn off interactivity and also to customize it, as one size does not fit all.

In the session entitled "Expand Your Audience and Revenue Through Online Subscription Services," Real Networks promoted its Internet-based, 90-channel video distribution platform, which currently has over 850,000 subscribers who pay $10 a month or more for niche content packages. President and COO, Larry Jacobson (formerly head of Fox TV), declared that "in broadband homes, people typically use their broadband connection more than they watch television" and concluded, "What the Internet provides is for anyone who has content to find new customers. He also mentioned that the company is looking to branch out to other platforms besides the PC, and has closed deals with TiVo and Play Station.

In the session entitled "The POV on VOD," panelists noted that, thanks to time-shifting technologies such as VOD and PVR, television is no longer a part of the communal mass-media experience, and argued that it is therefore more important than ever for networks and distributors to communicate what's available and when, and why it should be accessed. The panelists also concurred that established standards will boost the development and acceptance of VOD and ITV.

The session entitled "Interacting Outside the Box: Entertainment Extends Throughout the Networked Home & Beyond" was moderated by Allison Dollar, co-president of the Interactive Television Alliance. After Dollar summarized the Alliance's goals and activities, the panel discussed how interactive content and services are being distributed to a variety of devices and locations in addition to the PC and the TV: PDA's, kiosks, grocery stores, gas stations and more. Panelist Joe Franzetta, SVP business development of GoldPocket, described his company's real-time, 2-way interactive delivery of content to a range of devices including PC and wireless. Tom Cohen, senior marketing manager of Microsoft TV Platform Group, described the company's $1600 E Home Media Center, which launched in last November. The product consists of an HP tower PC, Windows XP, cable-TV and sound inputs, a DVD player, a DVR and a smart monitor. Josh Newman of Real Networks and Franzetta explained how the programming and device enhancements the panelists had outlined change the static relationship between the user and the box, enabling access to multiple devices with a single remote control, and thus empowering the user. In general, panelists encouraged producers to take advantage of the new technologies and developments that had been outlined in the course of the session, and emphasized the need for producers to understand and incorporate digital rights management software, in order to protect their content from copyright infringement.

In the end, most panelists in the ITV-focused sessions seemed to agree that more education is needed if producers are to fully understand and take full advantage of the myriad platforms, software and interactive strategies currently available.

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