Purpose and benefits

Interactive TV has been great in theory but less than satisfactory in practice. The principle is great: turn the TV into an interactive channel where people can interact, play games, and buy things. Because far more people have a TV than have computer access to the Internet, this—the proponents say—should open up a whole new marketplace for e-commerce. However, when considering interactive TV, keep the following in mind.

• it will probably be 2005 or beyond before interactive TV offers a viable and profitable marketplace.

• although it offers a wide range of interesting services, it is questionable how much extra the average consumer is willing to pay for such services.

• interactive TV is expensive to develop, and any business case needs to be rigorously tested.

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Management checklist, answers to FAQs, common traps, and suggested action plans.

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