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1999 Consumer Electronics Show READ ALL ABOUT IT! PAGE 2 Video Services Keep Chasing Convergence Though the cable, satellite, telephone, and computing businesses have been anticipating and speculating for years about convergence of their services, they do not seem much closer to a clear definition of what consumers actually want. Cable, satellite, and telephone executives yesterday outlined how far their services have traveled down that path, with each arguing they are making progress and have big plans for making consumer communications services even more interactive. Recent research by Showtime Networks shows American homes are making more use of personal computers alongside their TVs, Showtime Senior Vice President Jeff Morris said. In December, 45 percent of U.S. homes had a personal computer, and 34 percent used an online service, Morris said. Of those PC homes, 52 percent have their TVs and their computers in the same room and at least occasionally use them at the same time, he added. “There is a large segment of the population who is in fact convergent, whether or not technology is convergent yet,” Morris said. Executives from MediaOne, Comcast, and Scientific-Atlanta—cable-related companies all involved in deploying digital cable and related services—said their companies are actively courting those consumers, with high-speed delivery of Internet access. However, DirecTv Executive Vice President Larry Chapman highlighted what DirecTv calls a more “TV-centric approach.” Ticking off several new services the DBS company plans to roll out this year to enhance the value of DirecTv to its subscribers, Chapman stressed DirecTv is focused on giving viewers programming and services “appropriate to TV viewing.” DirecTv will not join cable in competing with telephone companies to deliver high-speed two-way communications, he said. “Satellite can compete in this broadband, hard-wired world” with quality video services that steal cable’s best-paying customers, Chapman argued. MediaOne Executive Vice President of Media Operations Ron Cooper appeared to agree the market has room for multiple players from the cable, satellite, and telephone worlds. “The [marketshare] pie is getting larger,” he said. “We are now seeing virtually every home in America subscribing to some type of multichannel video service.” TURN THE PAGE OTHER ISSUES: Thursday, Jan. 7, 1999 Saturday, Jan. 9, 1999 Sunday, Jan. 10, 1999   Please direct questions about this site to general.mail@satbiznews.com q 2000 Satellite Business News Inc. All rights reserved.