Convergence - Consumers Slow To Accept Media Convergence, Obstacles To Convergence, Convergence In Other Areas

In the field of e-commerce and information technology, convergence typically refers to media convergence, and especially to the combination of television, telecommunications, and the personal computer into a single box that would deliver high-speed Internet access, traditional television programming, and interactive services. However, as of mid-2001, interactive television (iTV) was more vision than reality. Major providers included WebTV, owned by Microsoft since 1997 and re-branded in April 2001 as MSNTV; and AOLTV, which launched in October 2000 following tests in select markets. WebTV quickly gained some 1.1 million subscribers, and then found it difficult to acquire more customers. AOLTV had to convince AOL subscribers it was worth an additional $14.95 a month, while non-subscribers had to pay $24.95 a month for access to AOLTV. Short of iTV, some TV shows—including Who Wants to Be a Millionaire?—offered some measure of interactivity by directing viewers to their Web sites.

Proponents of convergence expected it to develop between 2000 and 2005. Convergence at a technological level will enable voice, video, and data to be transmitted to consumers through a single pipeline. The pipeline may be wired, such as cable or DSL, or it may be wireless. Instead of accessing the Internet from a single box, however, consumers will be able to access high-speed networks from a variety of access points, including PCs, TVs, mobile phones, mobile devices, public kiosks, and home appliances. Technological convergence also is expected to result in further convergence at the business level. The merger of AOL and Time Warner to form AOL Time Warner was expected to help accelerate the convergence of traditional and Internet media. Other telecommunications, cable, Internet, and traditional media companies also would join forces, either through mergers or strategic alliances, to form fewer and larger organizations.