TiVo and Amazon.com on Tuesday said they will give TV viewers the option of using their remote controls to purchase products related to TV shows they are watching, have just watched, or plan to watch, or items highlighted in commercials.
For instance if a guest on a TV talk show such as Oprah has a new book, CD, or DVD for sale, impulse buyers can purchase the products directly from Amazon using their remotes. Consumers can also purchase products related to movies, actors, and directors that pop up in a TiVo program search.
Allowing viewers to interact with TV content has long been a goal of the TV networks, but the technology was fairly inelegant. But the emergence of the DVR and improvements in set-top box technology are giving interactive TV (iTV) an easier user interface. And advertiser demands for more direct contact with consumers is moving iTV further into the mainstream.
“TiVo pretty much started the DVR trend that resulted in people skipping TV commercials, but now we work with the networks and ad agencies to make advertising more effective,” said Evan Young, TiVo’s director of broadband services. “This is the last mile from impulse to actual purchase.”
TiVo’s purchase application appears only in advertising, blank screens between programs, or during program searches so as not to intrude on the shows.
If a viewer decides to buy an item, he or she can select the product and either complete the order immediately or add the product to his or her shopping cart for later checkout either on TV or online.
The buyer’s identity is confirmed by a PIN associated with the Amazon account.
The once sleepy iTV market is suddenly getting a lot of attention.
Last month six of the largest cable operators launched Canoe Ventures, an iTV startup, with $150 million and a mandate to seek out new iTV technologies that improve ad targeting, audience measurement, and interactivity. (see Cable Leaders Pilot Targeted Ads)
Also last month, Microsoft, which makes set-top software primarily for Telco TV services, announced the acquisition of Navic Networks, an ad-focused iTV firm for an undisclosed sum.