Bell Atlantic and Oracle Unveil Plans for Interactive Services

Strategic Insights -

Bell Atlantic Corp. and Oracle Corp. are joining forces to develop and market on-demand services such as movies and interactive shopping. The alliance aims to start testing these services in the Washington, D.C., area later this year, pending a spring trial. Bell Atlantic plans to provide service to 250,000 customers this year, 1 million more in 1995, and nearly 9 million by the end of the decade.

Key Takeaways:

  • Bell Atlantic will use Oracle's multimedia database software and Ncube Corp.'s parallel supercomputers as a video jukebox to transmit movies and other programs to subscribers' homes.
  • The new service, called video dial tone, will allow customers to choose from a variety of menu options, including television and movie listings, information services, and shopping catalogues.
  • Bell Atlantic's chairman and CEO, Raymond W. Smith, said the deployment of on-demand programming will mark the beginning of the interactive information age.
  • The service will be distributed to the customer on demand, using Oracle's multimedia database software.
  • The alliance has drawn interest from industry heavyweights such as IBM, and is expected to be closely watched due to Bell Atlantic's plans to buy cable giant Tele-Communications Inc. for $21 billion.
  • Oracle announced a similar deal last May with U S West Inc., another regional telecommunications company aggressively pursuing the creation of the electronic information superhighway.
  • The alliance is expected to start testing the service this spring, with plans to offer the interactive services later this year in the Washington, D.C. area.

Statistics:

  • Bell Atlantic plans to provide service to 250,000 customers this year.
  • The company aims to reach 1 million customers in 1995.
  • By the end of the decade, Bell Atlantic expects to have nearly 9 million customers.
  • Oracle's sales are projected to increase by 30 percent to $2 billion in its fiscal year ending in May.
  • Bell Atlantic's purchase of Tele-Communications Inc. is valued at $21 billion.

Sources:

  • Bell Atlantic Corp.
  • Oracle Corp.
  • Ncube Corp.
  • Raymond W. Smith, chairman and chief executive officer of Bell Atlantic
  • Lawrence Ellison, Oracle's founder and chief executive officer