8-Dec-99

Commerce.TV To Link All U.S. Cable And Satellite Subscribers To Television Commerce

Start-Up Solution Supports Millions Of Simultaneous Transactions, Creating Robust Infrastructure For Television Commerce

Combining the central entertainment appliance in American homes with commerce concepts pioneered by Internet-based retailers, Commerce.TV today announced a new transaction processing technology that leverages the cable and satellite television industry's existing infrastructure to handle millions of ""impulse buy"" transactions. This comprehensive solution from Commerce.TV allows cable and broadcast networks, merchandisers and advertisers to offer interactive television commerce, or ""t-commerce,"" to cable and satellite subscribers. Commerce.TV's patent-pending Commerce Control Networkô (CCN) is a transaction processing architecture comprised of an application server and Oracle database server, located in each cable head-end across the country. The CCN links the user interface application running in subscribers' digital set-top boxes to a national data center. The system will perform end-to-end transaction processing by offering subscribers an opportunity to purchase products related to the underlying television content. For complete t-commerce processing, from the click of the remote through fulfillment, the Commerce.TV CCN will process subscriber purchase orders. The system's databases combine product information with television schedules and local channel lineups to present targeted purchase opportunities, and then combine detailed subscriber data and payment information with viewer product requests to create fulfillable purchase orders. In turn, the system then delivers orders nationally and forwards them to merchants in each merchant's required format to pick, pack and ship individual orders. ""Commerce.TV is providing cable and satellite companies with the missing technology link for interactive television commerce: A transaction processing platform powerful enough to handle the burst traffic of millions of purchases at the same time,"" said Matt Kay, president and CEO of Commerce.TV. ""Our goal is to make direct sales to subscribers possibleóacross all television channels, at all times. Commerce.TV is neither Web access, nor hyperlinks to Web sites. It is the first high performance commerce system designed to deliver on the promise of two-way digital cable and satellite networks, extending the branding and revenue opportunities for network operators and broadcasting and merchandising partners."" A Constant Connection For Television Commerce Besides the high-volume transaction processing architecture to handle burst t-commerce traffic, the Commerce.TV solution includes advanced customization features to accommodate the personal preferences and/or payment options of multiple users within a household, and a scaleable architecture for future expansion. All viewers need is a digital cable box and remote control in order to preview and purchase program-related products directly from their favorite TV programs or advertisements. ""IDC believes there is tremendous industry movement and investment underway towards improving the consumer viewing experience with interactive TV,"" said Kevin Hause, Manager of Consumer Device Research at International Data Corp. ""A crucial application in the enhancement of interactivity is commerce, through both independent services, but also impulse shopping. However, in order for commerce to be viable, it must be based on a robust, scalable solution that can handle the information and transaction processing effectively, securely and reliably."" As the primary owner of subscriber relationships, cable operators will be the first to reap the benefits of the Commerce.TV proposition. By simply conferring a secure space to Commerce.TV's servers and databases, the cable and satellite operator is provided with all of the necessary hardware and software equipment to commerce-enable television programming and to share in transactional revenues on every purchase. Moreover, Commerce.TV will arrange partnerships with online suppliers of toys, books, clothes, CDs, etc., to fulfill orders and handle credit card authorizations. Robust t-commerce Transaction Processing On All Channels At All Times Once installed, Commerce.TV's passive delivery model is designed to be unobtrusive. Viewers will be alerted to the availability of ""enhanced-content"" programming and advertising via a small, on-screen logo. Consumers will use their remote controls to view products on a scrolling menu that will be an extension of the on-air programming, allowing viewers to remain within their favorite TV shows while shopping. During a program on home remodeling, for example, the Commerce.TV menu would offer viewers such related items as tool sets and project blueprints. Football fans would be able to purchase team merchandise while still watching the game, and even order a pizza. ""Most TV shopping options either require subscribers to tune to a dedicated channel, use the phone to buy merchandise, or log on to a Web site, which takes viewers away from their favorite programs to complete transactions,"" explained Kay. ""Because we've developed a robust interactive transaction processing model, Commerce.TV will eventually be on all channels at all times, offering a simple, impulse-driven shopping method in which the programming attracts the audience and the merchandise offered fits within the context, and content, of popular TV shows."" Commerce.TV's Commerce Control Network The CCN is a distributed database architecture that has a three-tiered approach to television commerce: - Client Application: An application running on the viewer's digital set-top box that provides the user interface and facilitates communications with the Commerce Transfer Point database. - Commerce Transfer Point(TM): A combination of Microsoft NT application servers and Oracle database servers that reside in the cable operator's head ends, caching merchandise information related to each TV channel and forwarding viewer order information to the central Commerce Control Point database. - Commerce Control Point(TM): The heart of the Commerce Control Network that communicates with all Commerce Transfer Point databases. The Commerce Control Point provides the ultimate links between viewers and trading partners. About Commerce.TV Commerce.TV, based in Dedham, Massachusetts, provides a complete end-to-end solution to enable the cable and satellite television industry to sell products directly to consumers on all channels at all times. The Commerce.TV system links directly to merchandisers for seamless integration and quick delivery of merchandise. Commerce.TV will be available to viewers in select cable markets beginning in the second quarter of 2000. (c) Commerce.TV Corporation 1999. All rights reserved For more information, contact: Commerce.TV, Erin Murphy, 781 320 4000, emurphy@commerce-tv.com.

Additional information regarding Commerce.TV is available at http://www.commerce-tv.com.