The latest report from industry watchers, Datamonitor, finds that the European interactive television market will be worth close to $1bn within five years. The new report, Enabling Interactive Television, says that interactive television services will generate $966m in 2002, with the most popular applications being Internet access and near video-on-demand. Internet access to the television through specific consoles, such as Microsoft Corp’s WebTV, or an empowered set-top box are expected to account for $160m and $285m respectively by 2002. Near video-on-demand will be the most lucrative interactive service, generating $287m in 2002 and will mostly substitute premium television services, rather than video rental. Near video-on-demand is expected to be offered first as a subscription service rather than as a pay-per- view option. One reason for this is that consumers are already accustomed to subscription channels and are more likely to subscribe if services are marketed in a familiar way. The ‘react- to-content’ games market is expected to account for $234m in 2002. This is a game that enables the viewer to interact with broadcast television content, such as playing along with a television quiz. The functionality is expected to be in the set- top box rather than in a separate device.
