ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Tuesday, January 16, 1996              TAG: 9601160027
SECTION: EXTRA                    PAGE: 3    EDITION: METRO 
COLUMN: At Home With Technology
SOURCE: DAVID BUTLER


INTERACTIVE TV MAY ONLY BE A STEPPING STONE

Q: I've heard various reports about new interactive TV services being developed, yet I'm still unsure of what it all means. Could you bring me up to speed?

A: Every interactive TV project seems to have its own point-of-view as to what interactive means. The word 'interactive' is sort of like tofu. It takes on whatever flavor you give it. You could argue that plain old television is interactive - interacting with the channel button influences your experience.

The only way to fully appreciate the range of interactive services being developed is to look beyond the buzz words. 'Home shopping' doesn't say very much. Nor does 'on-screen program guide.' Most cable systems already offer home shopping channels. Likewise with on-screen guides. In some areas, viewers can even scroll backwards to look for a particular listing. Isn't that interactive?

Comparing a program scroll to an interactive guide is like comparing a video cassette to a CD-ROM. The latest on-screen guides let viewers reorganize program listings at will - for example, to create a list of favorite shows or favorite channels. If you want to check out upcoming sci-fi movies, you can sort the listings by category. Or to find all airings of a specific show, simply sort by title.

What about 'pay-per-view' and 'near-video-on-demand?' Been there. Done that. Can true video-on-demand be that much different? You bet! Think about VOD as a 'virtual VCR.' Once you select a movie, TV show (or compact disc, for that matter) from an extensive digital library, you can begin playback. Within a time window you can pause, rewind or fast forward (except for the ads, of course!).

Whoa! There's something radically different about video-on-demand! Many so-called interactive services, even the most sophisticated program guides, are basically broadcast systems. All interaction is between the viewer and a set-top box. Alternatively, VOD requires a 'back-path' - a way to control the video server in real time. Two-way cable systems now being deployed offer one possible solution.

Video-on-demand may eventually make TV channels irrelevant, and all but eliminate fixed broadcast schedules (except for live coverage of scheduled events). Interactive program guides will be replaced by elaborate on-screen menus. You'll be able to watch Leno at noon or Oprah at midnight - no VCR required! And you'll only be a few button presses away from missed episodes of your favorite shows.

This scenario obviously has major implications for broadcast advertisers. In some instances, you may be given a choice between watching a first-run movie without ads for $3 or with ads for $1. More importantly, advertisers will gain two powerful new tools: narrowcasting and viewer participation.

Information services will not be dissimilar to those now available through on-line computer networks - real-time access to news, sports and financial data. You'll even be able to send and receive e-mail, or assemble a personalized newspaper - complete with video clips and sound bites. The fiber optic networks that will deliver these services are hundreds of times faster than the fastest PC modems.

Whoa again! Are we still talking about interactive TV? Well ... Yes, sort of. Telephone and cable industry giants are scrambling to create the ultimate 'full service network.' The vision is this: A high-speed optical fiber will connect your TV, telephone, computer, or whatever, to audio, video and other entertainment services, the telephone network, utilities, banks and merchants

To receive a copy of my Interactive TV Resource List, please send $1.50 and a self-addressed envelope to David Butler F-547, Department TWN, 14713 Pleasant Hill Road, Charlotte, N.C. 28278-7927. It includes information on more than a dozen market trials.

TechTalk: Fiber-to-the home may be further away than you think. Most experts now agree that a hybrid 'fiber-to-the-curb' system, one that relies on coaxial cable for the last few hundred feet, may not only be less expensive, but overcomes several sticky technical hurdles.


LENGTH: Medium:   79 lines
ILLUSTRATION: GRAPHIC:  This high-capacity digital network delivers 

interactive TV, video-on-demand, transaction and information

services.

by CNB