1. Murray Anderson

    Managing Director at Steelside

    14 February 2001 15:31pm

    Murray Anderson

    On Monday (12/02/01) the ITC released a set of guidelines (to broadcasters) for the development of interactive TV services. The key areas were consistent with comments from the ITC over recent months as well as the broader themes of their interactive TV rulings to date.

    A copy of the ITC document can be found on the ITC site: www.itc.org.uk (under the News Release section). Here are a few comments/opinions:

    General Observations

    · The guidelines do not include any significant departures from the theme and approach of previous ITC rulings. Many of the points outlined seem to be more detailed versions of the frameworks outlined in previous releases.

    · Generally, e-consultants should support the ITC in their aim of providing a regulatory framework to the development of interactive TV services.

    · The ITC’s acknowledgement of the importance of "some degree of commercial exploitation" if the development of interactive enhancements is to yield viable commercial opportunities – is a positive sign.

    · The ITC have taken their existing linear broadcasting regulatory guidelines as the foundation to guidelines regarding "Enhanced programme services:
    [In general, the ITC] sees no persuasive argument that the protection of programme integrity is any less important in the interactive environment than in the linear one." {pt. 18}

    This theme will persist and should remain core to any future ITC rulings on interactive TV.

    · The ITC may not have taken full account of the degree of self-regulation that could emerge in the industry. For the foreseeable future it seems clear that, in the minds of consumers, the TV will remain primarily a passive entertainment device - as opposed a fully interactive interface. This is not to say that interactive applications can’t provide unique opportunities to retailers and compelling experiences to viewers, but the primary need addressed by television will continue to be one of “sit-back” entertainment. As a result, I believe the majority of viewers would not react favorably to continuous interruption of content with prompts to interact and functionality that is aimed at generating commercial sales.

    Key Guidelines:
    · The need to regulate the "first click screen" has been suggested by the ITC in the past and the recent guideline is a more detailed iteration of previous rulings. The following is a key extract from the “Rules for Interactive Enhanced Programme Services” document:

    "6. A choice to interact is not the same as a choice to receive advertising or offers for sale. No choice to interact with editorial programming may take a viewer at the first click to a site dedicated wholly to advertising content. When the viewer first chooses to interact with editorial, the destination must therefore offer some editorial programme enhancements. These may be coupled with links to commercial content, but there should be a clear indication that the next click will take the viewer into advertisements or offers for sale."

    · The following programme categories qualify for special safeguards:

    News/Current affairs programme:
    No link between enhancement and products/services mentioned in the programme.
    No direct offers for sale contained in the enhancement to the programme

    Consumer advice programme:
    No direct offers for sale on products/services covered in “reviews or advice” during the programme

    Children’s programme:
    The guidelines for advertising during children’s programming are applied to any enhancements of the programming

    Again, these categories are consistent with the ITC’s rulings on advertising-related content.

    · The “light touch” approach to “dedicated interactive services” is in line with previous rulings and (basically) places the primary responsibility for control of content in the hands of the platform owner.

    The ITC makes no reference to the emergence of new independent* interactive shopping services. Hence, this ruling may prove to be a point of contention, between the delivery platform owners and shopping platform owners.

    Some Implications for Retailers:

    The key implication is the requirement for an additional stage of viewer interaction between the purely-editorial-content interface and the commercial/sales interface. These first click screens will need to include content as well as (minimal) commercial messages. Retailers could be affected as follows:

    - Possible reduction in the capability for entertainment content to convert sales impulses:
    o The additional level of navigation could delay the viewer so that the chance of conversion is decreased - especially given the relatively slow interaction response on iTV platforms.
    o The non-commercial content in the first click screen could distract the viewer and divert them from the shopping process

    - Although the apportioning of development cost will vary across different projects, retailers stand to take on some of the extra cost for development of these screens
    - Negotiations with content partners will need to incorporate production of these screens. TV production houses may not be experts in this area and retailers could require:
    oSpecialist development for this content and functionality
    oAdditional partnerships with the platform/broadcast channel on which the programme is carried.

    Feel free to post your own opinions on these guidelines.

    [* These are shopping services not owned or controlled by the digital platform through which they are delivered to consumers. Examples include the recently announced “Bright Blue” interactive shopping service from Energis/Graham Technology that is expected to launch on Sky Digital (in competition with the Sky-owned Open… service).]

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