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`PMC Exhibit 2122
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`Mr. Henry Overduin
`53! Clarence St.
`Lake Charles, LA 70601
`
`Videotex ’83
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`try’ma...._,5“M“NH
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`PMC Exhibit 2122
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`c London Online Inc,
`
`l983
`
`No part of this book may be reproduced, stored in a
`retrieval system, or transmitted in any form, by any
`means, electronic, mechanical, photocopying, micro-
`filming, recording or otherwise, without written
`permission from London Online Inc.
`
`PMC Exhibit 2122
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`TAKING VIDEOTEX TO MARKET:
`
`THE CBS ROLE IN THE
`
`JOINT CBS/AT&T RIDGEWOOD TRIAL
`
`David Shnaider
`Senior Editor
`CBS Inc
`USA
`
` 93
`
`in
`CBS's philosophy about videotex, and its reasons for involvement
`the medium, are explained.
`The main factors that CBS has identified
`as crucial to success are identified, and there is a discussion of the
`content areas provided during the joint field test with American Bell
`from September, 1982 to April, 1983.
`
` ‘J.E-1
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`
`Qavid Shnaider is the Senior Editor at CBS
`Venture One responsible for the production and
`maintenance of the editorial content,
`consisting of information, entertainment and
`amusements, and education.
`He joined Venture
`One in April, 1982, after working for 12 years
`at Broadcast News Ltd.,
`the Canadian news
`agency serving radio,
`television and cable
`television operations.
`In his last position
`at Broadcast News he was the manager of
`marketing and planning.
`
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`94
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`CBS's experience with videotex has convinced us that this medium may
`revamp how you and I use our leisure time, and upset some of our most
`we1l—entrenched buying habits.
`
`This is certainly a sweeping claim. All of us have seen black boxes
`arrive from the laboratories, with claims that they'd revolutionize
`this, or overturn that. Yet when all was said and done,
`the more
`things changed,
`the more they stayed the same.
`
`But videotex is different because there has never been a medium that
`
`can talk to millions, one at a time —— and then let the millions talk
`back.
`And there has never been a medium that gives consumers,
`
`advertisers, merchandisers, and content suppliers so much freedom, so
`much selection, so much power.
`
`In Ridgewood, New Jersey it has changed the ways people shop, manage
`their money,
`learn about their world, and amuse themselves.
`
`to talk back and forth with the user makes videotex the
`The power
`first communication medium that can be whatever, whenever, one wants
`it to be. Videotex puts us,
`the consumers,
`in charge. whether we
`want the latest Zurich gold price, or today's specials at the A&P, or
`a refresher course in high school algebra, we can get it now, when we
`want it.
`
`a television screen
`
`that will cause such significant changes in our lives
`It is this power
`as videotex enters the home.
`
`From one videotex
`For consumers, more power means more convenience.
`keyboard, we can order tomorrow‘s groceries, check the box score from
`last night's Yankee game, pay a bill from the gas company, and take on
`the kids in the latest video craze.
`
`For advertisers, more power means that ad campaigns can be targeted
`and tracked more precisely than in any other medium.
`The videotex
`computer personalizes which pages —— and therefore which
`advertisements —— consumers call to their screens, giving advertisers
`a 100—percent targeting of messages, for the first time.
`
`For merchandisers, more power means bringing the
`living—room easy chair. Videotex power converts
`into a family buying center with unlimited shelf space. Consumers tell
`the videotex computer what
`they want
`to buy, and it searches for shops
`carrying those items,
`shows them the merchandise,
`takes their order,
`and charges their credit card -— every hour of every day, without
`the
`expense of a sales staff or
`the overhead and inventory of a store.
`
`shopping mall to the
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`ally, for the content supplier —— the programmer, publisher, or
`,ftware developer —- more power means higher value, with lower
`.F0ductiOn and delivery costs. Because it's electronic, videotex
`ermits content to be fresher, more up—to—the—minute,
`than other
`ttten media.
`
`short, videotex power promises you and me a means for coping with
`or ever—increasing responsibilities and information needs
`""2F‘ O 5.1. (D 5 C?’ l-‘ ‘<
`2
`less expensively, and more conveniently.
`And for the
`dvertiser, merchandiser, or publisher, videotex power means new
`venue sources.
`
`
` EWOOD TRIAL STARTED
`
`
`
`.55 began to recognize this exceptional potential about a decade ago.
`But many technical
`issues had to be resolved.
`
`In October, 1981, AT&T
`be decided to seek a technology partner.
`goined us for the field trial in Ridgewood.
`The trial began in
`September, 1982 and ran through April, 1983.
`AT&T provided the
`ardware -— the home terminals, computers, operating software, and
`graphics equipment; CBS was solely responsible for the content —-
`information, entertainment, advertising, and direct marketing.
`
`the
`
`We selected Ridgewood as the test site for a variety of reasons:
`is conveniently situated near CBS and Bell headquarters and
`paboratories, and the village is widely used by major publishing
`Dmpanies and by Madison Avenue's top agencies to try out new ideas.
`
`it
`
`We scientifically selected two sets of 100 families as our test
`articipants.
`Each family received a videotex terminal for three
`
`to create the videotex product we built a team of 50 editors, artists,
`Omputer systems managers, and marketing specialists.
`
`50U8ht people who learned quickly, who were creative, eager, and
`so
`Ebthusiastic, and who were willing to take a flyer on a technology
`that might or might not prove to be a business. Many of them came
`from inside CBS,
`from broadcasting,
`from magazine and book publishing,
`from records and from our computer services division.
`
`The
`’OtherS Joined us from a variety of diverse backgrounds.
`P’°dUCti0n Director is a librarian,
`the Senior Editor for Product
`Development is a registered nurse, and the Features Editor last taught
`political science at Harvard.
`'
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`we gave these people three objectives.
`
`First, we had to learn how to make a successful videotex product.
`What characteristics, what services will prompt consumers to use
`videotex? And once they start, how do we keep them coming back?
`
`How does a
`Second, we wanted to learn how to create that product.
`videotex service evolve?
`Do we have to develop all of it from
`scratch, or can we adapt material from other media?
`
`Finally, we needed to know if consumers will accept videotex and
`integrate it into their lives. will it become a media and lifestyle
`habit? Does it have limited consumer appeal —— in which case CBS
`might not be interested in pursuing it as a business -— or does it
`have the potential to develop into a major service activity?
`
`WHAT WE LEARNED
`
`we've found five elements that seem to describe a successful videotex
`
`product. Videotex seems most effective when it is:
`
`.
`
`.
`
`.
`
`.
`
`.
`
`.
`
`. diverse -— that is, aimed at a truly mass market by serving
`a variety of needs and interest;
`
`.
`
`.
`
`empowering —— designed to give consumers full use of the
`system‘s enormous computer power;
`
`to include the most current
`dynamic —— always changing,
`information, advertising and services available;
`
`engaging —— interesting to read, attractive to look at,
`simple and enjoyable to operate; and, finally,
`
`.
`
`.
`
`.
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`local —— part of the community it serves.
`
`theseTfilements in practice in our Ridgewood prototype, which we
`we put
`called REACH
`by combining traditional ideas with unique concepts.
`
`information, and
`Of course, we provided an up—to—the—minute news,
`entertainment package.
`And we decided from the start that this
`package would look EXACTLY as WE wanted it to look. So we rewrote and
`reformatted virtually all material
`from our more than 100 information
`sources. There were no gateways, except for banking.
`It was costlier
`for us to do this, but it paid off, because we were able to experiment
`to the fullest degree with different methods of writing, presenting
`and packaging information.
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`3 also had special sections just for teens and for kids —— material
`v"interest to them edited at their reading level. Our Shop—At—Home
`section contained national catalogs, merchandise from local retailers,
`d a comparison shopping guide.
`A home banking service connected
`st participants with an electronic funds transfer and bill—paying
`rvice managed by ADP for a group of New Jersey banks.
`
`gar unique software feature called FAST TRACKPM was a personal
`ilectronic clipping service. with FAST TRACK,
`you tell the computer
`'hat
`items you follow regularly, and the computer remembers .
`.
`. and
`henever you want, will show you the latest versions .
`.
`.
`in the
`pder YOU want
`to see them.
`
`to each
`Message Service let people send private electronic mail
`her
`instantaneously.
`They could also keep a personal calendar in
`e computer, and the computer would send them a message when an
`pmportant date comes due.
`
`ersonal Files feature was an electronic filing cabinet for each
`st participant to save pages from the screen.
`
`ving people power over these thousands of pages of information is
`e essence of videotex.
`In REACH,
`we put computer power
`to work
`tor
`the consumer.
`
`
`
`-mong pfir most popular features, for example, are what we called
`HOICE
`services.
`here,
`the computer searched through extensive
`lbraries of information -— movie and theater timetables, restaurant
`stings, recipe files, stock quotes —— to find just what
`the consumer
`ants. This let people save time, a valuable commodity.
`
`.We also made shopping fast, fun, and almost effortless.
`
`d videotex power helped consumers manage their money more
`ectively, with the home banking service getting a current balance,
`31mg bills, and moving funds between accounts was as easy as
`Opping or reading the news.
`
`then, can reduce many of life's time—consuming,
`deotex power,
`nvolved tasks to one or
`two simple steps. what's more, because it's
`3¢Y“amic —— forever changing, responding to new needs —— videotex power
`3? keep you and me up to date.
`
`A new recipe to try,
`each day brought something new.
`“‘REfiCH,
`:”311Y tied to the season or something that's on sale.
`we drew on
`o
`as culinary resources of two popular CBS magazines Woman's Day and
`5"" {A 5-" ‘.3 (D
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`joke, or puzzle.
`For the kids, each day brought a different riddle,
`we also produced a daily news report for children, with the day's top
`stories rewritten for fourth—graders.
`
`We wanted people to feel there was always something happening that
`they could not afford to miss.
`we also wanted them to enjoy using
`REACH
`,
`to feel comfortable with this new technology.
`In a word, we
`wanted REACH
`to be engaging.
`
`Our children's section was engaging for kids by giving the videotex
`terminal personalitites, by making videotex seem like a friend. One
`such personality, Professor Porpoise, was the mascot of our science
`and health section explaining these areas for elementary grades.
`
`we also tried to make REACH
`
`fun, with video games.
`
`
`
`an engaging, dynamic, empowering, and diverse
`In making REACH
`prototype for a commercial service, we did not forget where we were:
`Ridgewood, N.J., pop. 25,208.
`For
`though videotex is world news
`headlines, up—to—the—minute stock prices,
`the Columbia House catalog,
`it should also be the news that Barbara and John Halenar just had a
`baby girl, that there's a sale at westerman's on Ridgewood Avenue,
`that the Ridgewood High School cafeteria's daily special is barbecued
`ribs on a roll.
`
`local
`information,
`In other words, we believe videotex can serve local
`advertising,
`local merchandising, and local entertainment needs as
`well and as efficiently as national ones.
`
`And the early returns from our test indicate we might be on the right
`track. Test families in Ridgewood used videotex as much or more than
`conventional media. Better than half the homes turned on videotex
`
`every day —- and kept it on for at least half an hour.
`
`But will people buy videotex? Our test participants will, half the
`participants interviewed after the first test phase said they'd pay a
`reasonable monthly fee to keep REACH
`.
`
`Is there a business here? we think there might just be some truth in
`those multi—billion-dollar growth predictions.
`The question comes
`down to added value: will videotex do unique things for consumers --
`give them enough services they can't get from any other medium —~ to
`make the initial sale and keep them coming back for more? That is the
`challenge that faces all of us.
`
`*CHOICE, FAST TRACK & REACH are Trade Marks of CBS Inc.
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