Smart sets: age of interactive TV may be nearing as IBM and Warner talk deal; viewers could dial a show, then shift pieces about or create own replays; a commercial just for you

Article Abstract:

Time Warner Inc is reportedly talking with IBM about combining computer capabilities with cable television systems, though neither company confirms this. Meanwhile, Time Warner is conducting a trial of a 150-channel cable system that allows customers to 'interact' with their television sets, choosing pay-per-view movies and using computer-like arrangements to scan through channels and program listings. Eventually, systems will incorporate features of computers, television sets and compact disk players, with customers empowered with interactive control. A deal between the world's largest computer company and the world's largest entertainment company would signify a major step toward actualizing these possibilities. Since the 1960s, American television has provided a diverse and multicultural population with a common, shared experience. The social consequences of altering the nation's media in a fundamental way are open to speculation.

Cable and other pay TV services, Motion picture & video production, Miscellaneous publishing, Computer industry, Internet services, Time Warner Inc., Cable television, Interactive television, Industry Analysis, Outlook, Future Technologies, Cooperative Agreements, Cable Television/Data Services, Interactive Cable

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IBM is said to be in talks for Northgate

Article Abstract:

IBM is negotiating with Northgate Computer Systems Inc with an eye on buying the small personal computer clone maker. Because IBM has traditionally shunned clone computers, the development is yet another sign of how rough a time the firm is having in trying to sell PCs to a market that has by and large foregone name brands in favor of cheaper prices. IBM is test-selling a clone in Southeast Asia as a means of providing the firm with a more competitively priced product at the lower-range market. Gross profit margins at a firm such as Northgate is at 30 percent; the same margin is impossible to attain at IBM given its high overhead. In 1991, the IBM's PC revenue showed a decline for the first time, dropping 10 percent. Price wars that triggered double digit shipments resulted in flat revenue for the 1st qtr.

Computer and software stores, Management, Microcomputers, Marketing, Negotiations, Revenue, Microcomputer, Market Analysis, Competition, Marketing Strategy, Acquisition, Negotiation, Northgate Computer Systems Inc., Cost of Operation

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