Interactive TV - A Swindle?

The most basic form of interactive TV is viewers phoning in to programmes. It's also potentially the most profitable for the TV companies. BBC's Panorama programme has uncovered just how profitable and potentially corrupt this form of interactivity can be.

On the commercial channels, like ITV and Channel 4, callers can often pay up to £1 per call. Their calls are usually handled by an outside telecommunications company - in the case of GMTV this was a company called Opera. Panorama revealed that Opera was choosing winners from the GMTV competition callers before the lines were officially meant to close, meaning that many callers were continuing to call in, thinking they might win, when they actually had no chance of doing so. This is similar to selling raffle tickets and then not putting them into the drum to be drawn out. It's alleged that this could have amounted over £12m pounds being defrauded from viewers who called in. GMTV has apologised for this and claims to have had no knowledge of the alleged fraud.

But why do we have so many of these phone-ins in the first place?

Mark Thompson, director general of the BBC, claims that it's down to audience demand - many viewers like to interact with programming in this way so the BBC provides them with this opportunity. I suspect that in the BBC's case it's as much about competition as audience demand - so many of the commercial channels do it, thereby creating expectation amongst the audience that programmes will include such opportunities.

For commercial channels it's as much linked to a much bigger problem (created by the growth of other new media technologies like DVRs and the internet) - the decrease in advertising revenue. For a channel like ITV, who traditionally made all its money from advertising, the chance to make money from viewers using premium rate numbers to call in is too good to pass up. In fact, they've developed whole new digital channels to benefit from this new revenue stream (way of making money) - the quiz channel, ITV Play. According to Panorama, ITV Play made £8 million in its first year of operation, while the total prize money given out was £20,000.