Abstract
Interactive television (iTV) can be defined as the result of the process of convergence between television and the new interactive digital technologies (Pagani, 2000a; 2000b; 2003). Interactive television is basically domestic television boosted by interactive functions that are usually supplied through a ‘back channel.’ The distinctive feature of interactive television is the possibility that the new digital technologies give the user to interact with the content that is on offer (Flew, 2002; Owen, 1999; Pagani, 2000a; 2000b; 2003). The evolution towards interactive television has not an exclusively technological, but also a profound impact on the whole economic system of digital broadcaster—from offer types to consumption modes, and from technological and productive structures to business models. This article attempts to analyze how the addition of interactivity to television brings fundamental changes to the broadcasting industry. The article first defines interactive transmission systems and classifies the different services offered according to the level of interactivity determined by two fundamental factors such as response time and return channel band. After defining the conceptual framework and the technological dimension of the phenomenon, the study analyzes the new types of interactive services offered. The Interactive Digital Television (iDTV) value chain will be discussed to give an understanding of the different business elements involved.