December 4, 2006

Time Warner Cable Rolling with Interactive Services

By Mike Robuck

The announcement last week that Time Warner Cable and BIAP Systems signed a long-term affiliation agreement between the two companies was validation for BIAP's suite of interactive services.

Time Warner Cable has jumped on the interactive services bandwagon by deploying BIAP's applications, including eBay on TV, Fantasy Football Tracker and personalized information television (PITV, the latter of which TWC re-branded as "Instant News and More."

"Our initial usage and customer satisfaction results with the BIAP applications we have launched to-date have been excellent," said Bob Benya, senior vice president of On Demand and ITV for Time Warner Cable, in last week's press release. "The agreement signals our continued commitment to rolling out interactive television features that enhance our customers' digital television viewing experience."

The applications, which have been launched in eight TWC divisions, are free to digital subscribers, and Benya said that while the usage varies based on the applications, there's 20 percent to 30 percent usage rates among the digital subscribers where they've been launched.

The apps

The fantasy football sports application—there's also a baseball version—was first launched in TWC's Green Bay division last year and has since been deployed in other divisions as well. The application allows digital subscribers to track their teams' rosters and statistics by using a standard remote. Once the preferences have been set up, either via a menu page or by selecting options on the overlay with the remote, the overlay appears on any channel in the digital lineup and can also provide popup alerts when a selected fantasy player adds to his stats with a homerun or touchdown. The information can be displayed as a scrolling ticker or be enlarged to full screen.

The PITV uses information such as zip codes to provide weather information and can be also personalized for stocks, news, sports and local community information by either a standard remote or on-screen menu option. A cable operator could strike up local content agreements with, for example, a local university to provide information on its sports teams.

"When we install an application in a market, we begin by localizing it," said Ellen Dudar, a co-founder of BIAP and the chief product officer. "From day one, it's already going to be tailored for that location, but beyond that I can go in and select settings from a menu. There's a long list of options as well as data entry for things like stock symbols and weather zip codes."

BIAP joined eBay's developers' program to set up eBay on TV in Time Warner Cable's Austin, TX, division. Subscribers receive popup alerts when they're outbid on an auction item and can increase their bids by using their remotes without leaving the comfort of their couches. Dudar said the size of the bids returning to eBay are small, so there is little latency for eBay sniper aficionados while files coming in to the set-top box, including photos, are a little larger but take only a few seconds to download.

Revenue models

Through BIAP's affiliation with eBay, TWC and BIAP each make a small amount on the online transactions, but Benya said that starting next year TWC will start inserting advertising into the applications. In addition to its foray into interactive applications, Time Warner Cable has also been working on the interactive ads that dovetail with the applications. Last month, TWC launched an active ad campaign in its New York City division, and last year it deployed interactive ads in upstate New York.

Dan Levinson, BIAP's executive vice president, marketing, said in addition to revenue through interactive advertising or affiliate programs, the interactive applications can provide a competitive advantage over other providers and may help reduce subscriber churn.

EZ install

Dudar touted the ease in which BIAP's applications can be installed by a cable operator, with which TWC's Benya concurred. BIAP, which was recently nominated for two Emmy Awards, uses a distributed architecture with the key ingredient being the software that is downloaded to a variety of digital set-top boxes. To date, TWC has used Scientific Atlanta headends and set-top boxes for the BIAP appliacations, but Benya said the future rollouts will include Motorola boxes and headends.

Dudar said a server in the headend stores the users' preferences and bridges the gap between the cable plant and the outside Internet. BIAP agents are sent to servers on the Internet to collect the requested information. As part of the applications suite, BIAP secures the content deals with entities such as the Associated Press and sports networks.

"From a cable standpoint, we have this one binary application that gets downloaded into the set-top box, and then each application comes down in an object database, or XML file, that contains all of that applications logic, including any scripts that need to run or any user interface elements," Dudar said. "Once we get the server installed, that bridges the networks we can deploy applications remotely."

The application is downloaded into the set-top box in-band, and then the box retrieves the data out of band. BIAP has the same applications that TWC is using available in OCAP format, as well as in other platforms, and is in discussion with other cable operators and telcos.

"It really is easy, very simple to install," Dudar said. "Traditionally, these guys (cable operators) like to watch other operators and see how it (a deployment) goes, and I think Time Warner Cable has taken a lead in that regard. By saying we're ready to be deployed in their (TWC's) 33 markets shows a vote of confidence in this technology."

- Mike Robuck