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–Will Still Support Red-Button Advertising

UK broadcaster, Channel 4, has shut down its red-button interactive TV service–though it says that it will continue to support red-button interactive advertising on its channels, and that it also remains committed to supplementing its linear TV programming with broadband and mobile services (note: Channel 4’s commitment to broadband in particular is clear; in just the past few weeks, it has, among other things, premiered an episode of the show, "The IT Crowd," on broadband; launched a broadband-only movie review program, called "Movie Rush," and announced plans for a broadband comedy channel, called 4Laughs). In addition, it says that it may revive its red-button service, should it prove commercially or editorially beneficial at some point in the future: "Since 2001, Channel 4 has invested both creatively and commercially in a series of red-button interactive TV services," a Channel 4 spokesperson told [itvt] by email. "However, we have recently taken the decision to focus all our resources on our mobile and Internet services which, we believe, offer better opportunities for Channel 4 to fulfill its public service remit of innovation, creativity and stimulating the UK production community, and to offer new revenue streams. We have therefore decided to close our existing iDTV operations, effective from 31st December. This decision will not affect Channel 4’s interactive advertising and does not preclude us from returning to this platform should future commercial or editorial benefits present themselves." Channel 4’s most high-profile red-button offering was the package of applications that accompanied its flagship show, "Big Brother": those apps included a multistream app that allowed viewers to switch between different live views of the Big Brother House, and also to access highlight streams; a news ticker; and an array of Big Brother-themed games.

The broadcaster’s decision to drop its red-button service was explained further by its CEO, Andy Duncan, at last month’s Oxford Media Convention: "At a time of lots of different possible technologies and options, our view is that red-button technology is a clunky and inefficient use of capacity," he said. "It’s not much loved or used by audiences, it’s too expensive, and it has been rather overtaken by the opportunities offered by the Internet and broadband. The red-button service does not help Channel 4 fulfill its public service remit and it doesn’t offer a way to make money. We are the first broadcaster to recognize that it is the emperor’s new clothes and to label it for what it is."

While many of the UK’s other major broadcasters have stated publicly that they remain committed to red-button interactive TV, and while the country’s largest commercial broadcaster, the Independent Television Network (ITV), is expected to expand its red-button services this year, the news of Channel 4’s decision to close its service is naturally of concern to application developers and other companies in the UK interactive TV space. News of Channel 4’s decision comes shortly after Sportech–the company which, through its subsidiary, Littlewoods Gaming, provided red-button interactive TV betting and gaming services, under the brand "Littlewoods Bet Direct," that were linked to programming on ITV– terminated its contract with ITV and closed down its interactive TV betting service, saying that it had lost money on the contract since its inception.

(Note: this article was published in the February 6th issue of the InteractiveTV Today [itvt] email newsletter.)

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