For Interactive TV, Potential Remains Unfulfilled

Throughout August, Disney Internet Group (DIG Quote) was awarding Mazda sport utility vehicles to players of its interactive version of ABC's Who Wants to Be a Millionaire.

That promotion appears to be the quickest payoff anyone, investors included, will get from interactive TV.

Interactive television, brewed in different flavors by companies such as Disney Internet, WorldGate Communications (WGAT Quote), Wink Communications (WINK Quote), Liberate Technologies (LBRT Quote) and ACTV (IATV Quote), promises a huge potential market as computer networks and television networks converge. But though interactive TV is getting loads of attention these days -- thanks to deals like ReplayTV's one-year agreement to deliver personalized advertisements for Universal Pictures -- the numbers behind the interactive-TV market point to investment payoffs that are small and not likely to get big anytime soon.

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