Rapid DTV Adoption Forces European Businesses To Broaden Internet Strategy To Reach Consumers Anywhere, Anytime

One in three homes in Western Europe, or 50.8 million households, will receive digital television (DTV) by 2003, expanding consumers' options for interactivity, according to new research released today by Jupiter Communications, Inc., (NASDAQ: JPTR) the worldwide authority on Internet commerce. European businesses must learn to navigate the new landscape and develop a multi-platform strategy to take advantage of the creative opportunities and limit the anticipated disruptions that DTV will bring. In doing so, business ventures will reach consumers wherever they choose to shop. ""For existing businesses and Internet ventures, interactive DTV (iDTV) is both creative and disruptive,"" said Noah Yasskin, Analyst with Jupiter's European Internet Strategies Research Practice. ""It opens up huge opportunities for retailers, financial services, and others by creating a new channel directly into consumers' homes, but it also disrupts the Internet economy, changing consumer behaviour and rearranging the suppliers' landscape. Consumers can now choose to access e-mail, shopping, and even the Web from their TVs or their PCs,"" Yasskin added. With the anticipated penetration of iDTV, the PC will no longer be the sole channel for interactive products and services for European consumers. Online users will access the Internet and shop on iDTV, as well as on other interactive devices, such as mobile phones with Web browsers; but, they will use the devices in different ways making the platforms complementary rather than competitive. The rise of DTV does not equal the demise of the PC; Europe will be composed of multi-platform markets. The new research delivered to Jupiter clients predicts rapid growth in iDTV for most markets across Western Europe: ""As TV shifts from analogue to digital transmission, iDTV will become a mass-market platform because consumers will receive interactive services free of charge as part of new digital video broadcasts,"" said Evan Neufeld, Vice President of International Research for Jupiter. ""However, interactive DTV services are being introduced gradually, and not all digital TV broadcasts will have robust interactive services in the short term."" * DTV penetration will increase from seven percent in 1999 to 33 percent by 2003 in Western Europe. * The number of households with DTV access will more than quadruple, increasing from 11.3 million in 1999 to 50.8 million by 2003. * The UK, Denmark, and Germany will enjoy the highest DTV penetration accounting for 52, 41, and 40 percent of households, respectively. Companies operating in Europe must broaden their PC-based Internet strategy into a multi-platform interactive strategy to take into account how iDTV and smart phones affect the Internet. This requires businesses to understand the ways in which TV differs from the Web, while learning what lessons apply across platforms. ""Interactive TV advertising has a lot to learn from the Web, but companies that simply port their Internet strategy onto iDTV will fail. Interactive DTV is not the Web on TV ,"" concluded Yasskin. About Jupiter CommunicationsJupiter Communications, Inc. is a leading provider of research on Internet commerce. Jupiter's research, which is solely focused on the Internet economy, provides clients with comprehensive views of industry trends, forecasts, and best practices. The company's research services are provided primarily through its continuous subscription services. Jupiter's well-known industry forums offer senior executives the opportunity to hear firsthand the insights of its analysts and the leading decision-makers in the Internet and technology industries. Jupiter Communications is based in New York City, with operations in London, San Francisco, Stockholm, and Sydney.

For more information on Jupiter Communications visit http://www.jup.com. Source: M2 PressWIRE