Study: Interactive TV Gaining Popularity

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Interactive television revenue will reach $7.3 billion by 2003 and $32.1 billion by 2006, according to a study released last week by Myers Reports Inc. and eMarketer.

The report, Interactive Television Outlook 2000, said that interactive TV's future was bright due to renewed consumer interest, initiatives by America Online, AT&T Corp. and Microsoft Corp., and a wider breadth of applications and services.

Though the interactive TV industry is still in its infancy, 1999 revenues are estimated at $665 million, and improvement in technology and greater penetration will aid growth. There will be more than 20 million users of interactive TV by 2005, the report said.

The report noted that interactive TV already has a strong following in Europe. It expected international growth eventually to sprint ahead of the U. S. market.

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