e.Digital Corporation (fka EDIG)

[gernb1]

National Study Reveals Consumers Want Interactive TV Services Now, Willing to 'Trade Up' to
Get Content



- Cable, Satellite Customers Indicate Readiness to Advance to Digital, Switch
Service Providers if They Can Get Currently Available Interactive Content -

LOS ANGELES, April 4 /PRNewswire/ -- The majority of consumers understand
what interactive television is, they want it now, and they are willing to
upgrade from analog to digital cable, or switch between cable and satellite
services, in order to get interactive content delivered to their homes,
according to a recent national study commissioned by interactive technology
companies ACTV, Inc. (Nasdaq: IATV), Liberty Livewire Corp. (Nasdaq: LWIRA),
Motorola, Inc. (NYSE: MOT), OpenTV (Nasdaq: OPTV; AEX) and
Universal Electronics Inc. (Nasdaq: UEIC) (UEI). The study, aimed at gauging
consumer interest in getting interactive TV services and their reaction to
various delivery options, was conducted by Boyd Consulting, a market research
firm located in Palm Desert, Calif.
"The study's findings tell us that consumers are keenly interested in
getting interactive TV services and that they like all the delivery options
they were shown," said David Beddow, CEO of Liberty Livewire and spokesperson
for the research sponsors. "Even with the nascent state of the technology and
content, cable and satellite operators have a captivated, if not captive,
audience eager to use interactive services now," Beddow said. "Via digital
set-top boxes that are being deployed today, we have the technology to deliver
the interactive TV experience consumers want."
Participants in the national study were exposed to an interactive TV
experience in three different ways: 1) a two-screen scenario in which
synchronized Internet content for a TV program is delivered over a PC located
in the same room as the TV; 2) a one-screen, or "on-screen", scenario that
drives interactive Internet content through a digital cable or satellite
set-top box to the TV and is viewed as an overlay on part of the TV screen;
and 3) an "on-screen" system enhanced by the ability to download the content
to one or more handheld touch-screen devices that can personalize the
interactive experience without disrupting TV viewing.
While emphasizing that the study's sponsors provide all three content
delivery configurations today, Beddow said, "The two-screen scenario, which is
most broadly available, is clearly helping to jumpstart consumer interest in
interactive TV services and programming. But overall, the delivery option
that consumers liked best was the on-the-TV-screen overlay enhanced by a
handheld touch-screen control device, such as Universal Electronics'
Mosaic(R)."

Key Findings
Receptivity to Interactive Solutions
-- The single-screen TV overlay format and the two-screen TV/PC solution
were liked equally well by more than two-thirds of consumers
participating in the study.
-- Personalizing interactive TV by using a handheld touch-screen device
improved customer perceptions, with three out of four consumers (76%)
liking the experience overall.

Expected Uses
-- Asked how they would use interactive services delivered through any of
the three options, consumers indicated a preference for instant access
to information such as news, sports and weather (52%), followed by
interactive TV guide (44%), behind-the-scenes information on TV
programs (38%), e-mail (37%), games or quizzes (32%), and other uses.

Satisfaction Factor
-- 64% of all digital cable customers and 57% of all satellite customers
surveyed said that having the single-screen TV overlay format as an
interactive solution would make them feel more satisfied with the
service they currently have.
-- These satisfaction figures increased slightly to 70% and 58%,
respectively, with the addition of the handheld touch-screen device.

Willingness to Upgrade, Switch Services
-- Among analog cable customers, nearly one-half (47%) indicated that
availability of single-screen interactive TV service would make them
more interested in subscribing to a digital service.
-- Availability of the Mosaic/handheld device enhancement drove up to
two-thirds (64%) the number of analog cable customers interested in
upgrading to digital interactive service.
-- More than half (57%) of consumers said that, if they were to trade up,
they would select whichever digital service (cable or satellite)
offered the single-screen TV overlay format for interactive TV,
coupled with a handheld touch-screen device.
-- 40% of satellite customers participating in the survey indicated that
they would switch to a digital cable service if the single-screen TV
overlay solution for interactive services were available only through
the cable delivery structure. This number increases to 42% with
introduction of the handheld touch-screen device.

Market Opportunity
"As important efforts continue to advance the technology for multiple
interactive experiences involving the Internet and the television, the cable
industry is already positioned to recruit a growing number of American
households who will be accessing and viewing interactive TV content," said
Beddow. "Through set-top boxes and cable-modem hookups, cable operators have
a tremendous opportunity to tap into the revenue-generating possibilities
afforded in today's interactive marketplace."
Beddow noted that about 52 million American households already have a TV
and computer in the same room, allowing them to watch a television program
while experiencing specially authored interactive elements of the program via
their computers with ACTV's HyperTV(R) technology, either through dial-up, DSL
or cable modem. Through a joint venture between ACTV and Liberty Livewire, he
explained, HyperTV(R) with Livewire enables TV networks, programmers and
advertisers to deliver by PC compelling interactive Web content, Web-based
advertising, e-commerce and community chat features synchronized to live or
pre-recorded TV programming (or any other video-based programming). HyperTV,
and ACTV's other interactive TV programming technologies and services, also
tap the power of currently deployed digital set-tops to make "one-screen"
interactivity a reality today, Beddow noted.
"The easy addition of interactive TV middleware to a digital set-top box
would enable millions to watch television programs and experience
interactivity today," Beddow continued. OpenTV, whose software for digital
interactive TV is deployed in almost 14 million digital set-top boxes
worldwide, enables customers to view enhanced TV programs, shop and bank from
home, send and receive email, and access Web content on demand. In terms of
digital set-top box availability, Motorola alone has shipped more than
12 million digital cable set-top boxes to more than 100 different broadband
network operators, Beddow said.
"Add to these deployed interactive digital services UEI's state-of-the-art
Mosaic -- a two-way RF touch-screen wireless control device (the IR version of
which is already being shipped through retail outlets), and consumers can
experience interactive TV by downloading content onto a palmtop-like touch
screen that doubles as a handheld monitor," Beddow said. UEI's patented
two-way RF data communication feature allows one or more TV viewers to
individualize their interactive experience by downloading interactive content
directly from the digital set-top box onto the Mosaic and then to also use the
Mosaic to control as many as 15 audio-visual (A/V) devices. "Viewers can use
UEI's Mosaic to individually access interactive Web content, peruse the
interactive program guide or explore interactive options, such as e-commerce,
games and e-mail, in the palm of their hand without interfering with others'
TV viewing experience," Beddow said.
A fulcrum for the interactive TV solutions advanced by the team of
companies, Liberty Livewire is a key stakeholder in the interactive
programming industry. "Liberty Livewire brings to the table major independent
post-production facilities for television and film, transmission capabilities
through satellite and other means, as well as relationships with AT&T to host
interactive programs to millions of simultaneous users," Beddow said.
"We have the technology and products available right now, and we have
receptive consumers," Beddow said on behalf of the interactive team that
sponsored the market research. "What we need now are cable and satellite
operators to get the product to consumers."
Boyd Consulting conducted quantitative, one-on-one interviews with more
than 500 head-of-household consumers across the United States in November and
December 2000. An equal number of analog and digital cable or satellite
customers were surveyed.

About ACTV, Inc.
ACTV, Inc., (Nasdaq: IATV) is a digital media company providing technical
and creative services, tools, products and proprietary software-based
technologies for digital television, enhanced media, interactive TV
advertising and personalized programming applications. Based in New York
City, ACTV has strategic relationships with key players in the Internet,
television and digital technology fields, including Liberty Digital, Inc.,
Motorola Broadband Communications Sector, OpenTV and Liberty Livewire Corp.
For more information, visit http://www.actv.com.

About Liberty Livewire
Liberty Livewire Corp. (Nasdaq: LWIRA) provides a wide range of
traditional audio and video post-production, transmission, library services,
Internet hosting, and audio/video distribution services via satellite and
fiber to worldwide clients in the feature film, television and advertising
industries. The company also provides interactive television service under the
brand name HyperTV(R) with Livewire. The company has locations in Los Angeles,
New York, Atlanta, London, San Francisco, Singapore and Barcelona. Liberty
Livewire is a majority-owned subsidiary of Liberty Media Group, which holds
interests in a broad range of video programming, communications, technology
and Internet businesses in the United States, Europe, South America and Asia.

About Motorola
Motorola, Inc. is a global leader in providing integrated communications
solutions and embedded electronic solutions. Sales in 2000 were $37.6 billion.
For more information, visit Motorola's Web site at http://www.motorola.com.

About OpenTV
OpenTV (Nasdaq: OPTV; AEX) is the world's leading interactive television
and media solutions company. OpenTV builds a complete software and
infrastructure platform that enables digital interactive television and brings
on-demand content to other digital communications devices. OpenTV solutions
are crafted to meet the needs of all digital communications networks and
include operating middleware, content applications, content creation tools,
professional services expertise and strategic consulting.
OpenTV software has been shipped with or installed in 13.9 million digital
set-top boxes worldwide and has been selected by 40 digital cable, satellite
and terrestrial Communications Networks in over 50 countries, including BSkyB
in the United Kingdom; TPS and Noos in France; PrimaCom in Germany; Via
Digital in Spain; Stream in Italy; DIRECTV(TM) Latin America LLC; and
EchoStar's DISH Network in the U.S. In addition, more than 31 digital set-top
box manufacturers have licensed OpenTV's software, and OpenTV's software
developers program has more than 900 independent developers and content
service providers.
Worldwide headquarters for OpenTV is located in Mountain View, Calif.
Information on OpenTV is available at http://www.opentv.com.

About Universal Electronics
Universal Electronics Inc., based in Southern California, develops
software, and builds and markets pre-programmed, easy-to-use wireless control
devices and chips principally for home entertainment equipment and the
subscription broadcast market. The company's product lines include such
wireless interface technologies as combination keyboard/remotes and
touch-screen remotes. UEI licenses its patented technologies and database of
infrared codes to companies selling into the cable and satellite industries,
and to original equipment manufacturers. The company also sells its universal
remote control products to distributors and retailers in Europe, Asia, South
America and Australia under the One For All(R) brand name. Additional
information about UEI may be found on the Internet by visiting
http://www.ueic.com.

This press release contains forward-looking statements that are made
pursuant to the Safe-Harbor provisions of the Private Securities Litigation
Reform Act of 1995. Words and expressions reflecting something other than
historical fact are intended to identify forward looking statements. These
forward-looking statements involve a number of risks and uncertainties,
including the timely development, ordering, delivery and market acceptance of
products and technologies identified in this release, maintaining the
exclusivity identified in this release, and other factors described in the
companies' filings with the Securities and Exchange Commission. The actual
results that the companies achieve may differ materially from any
forward-looking statement due to such risks and uncertainties. The companies
undertake no obligations to revise or update any forward-looking statements in
order to reflect events or circumstances that may arise after the date of this
release.



SOURCE ACTV, Inc.
Web Site: http://www.actv.com http://www.motorola.com
http://www.opentv.com http://www.ueic.com