Thursday, May 24, 2007

HSN launches interactive TV in the US: why the wait?

Saw today that the IAC/InterActive Corp.'s Home Shopping Network is launching a new interactive TV service in the US where viewers will be able to use their remote controls to buy goods being peddled on television. HSN is initially teaming up with satellite broadcaster EchoStar to offer the service, which means it will at first reach 12 million households.

I find it interesting that the US has taken so long to implment an interactive TV service. In other media, such as online, it has been a trail blazer. Just think of how almost all the innovations--and popular surge in usage--in 'Web 2.0' sites has come out of the US.

The UK, which has adopted a wait-and-see attitude regarding other new services such as online TV, has for once been a leader: the red button on a UK consumer's remote has become synonymous with interactive elements for a range of channels, from news and sport networks to home shopping programmes.

Yet maybe there has been some method to this US madness. The article notes that in trial markets interactive TV is accounting for 10% of all sales. I know that in the UK there have been lots of hiccups with very low usage for interactive TV services—despite their ubiquity.

The trend right now for broadcasters is to inject money into developing their online presence rather than expanding how to make their traditional TV services more dynamic. But I wouldn't be surprised if the rise of user-participation in online media has a knock-on effect in flagging interactive TV services. Perhaps being a late adopter in this case might not have been such a bad move after all?

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