Consumers give StarSight on-screen TV program guide strong approval in Viacom Cable's Castro Valley system; initial feedback supports market penetration rate of 50 percent.

FREMONT, Calif.--(BUSINESS WIRE)--March 21, 1995--Consumers participating in Viacom Cable's market trial of advanced TV services in Castro Valley, Calif. have given high marks to the StarSight on-screen TV program guide, according to research conducted by Viacom.

More than half of consumers surveyed said they would purchase a StarSight subscription for $5 per month. This market penetration rate is extremely significant for a new cable service. In fact, many cable TV experts consider market penetration rates of 15 to 20 percent after several years to be extremely high.

The percentage of StarSight users who said they would purchase the service increased sharply if monthly fees were lower than $5. Fifty-eight percent of StarSight users said they would purchase the service at $4 per month, while 68 percent said they would order it if priced at $3 per month. While the regular monthly subscription rate for StarSight is less than $5.00, the monthly rate is as low as $3.54 for a two-year subscription.

In addition, consumers surveyed said that StarSight delivers high value. Eighty-six percent of users said it was easier to find TV shows with StarSight. On average, StarSight was used by survey respondents nearly six times a day.

"The Viacom research clearly indicates strong consumer satisfaction and demand for StarSight," said John B. Burns III, president, StarSight Product Group, StarSight Telecast, Inc. "The research provides further confirmation of StarSight's value proposition, both for consumers and for cable operators as well," he added.

StarSight is a patented interactive on-screen TV program guide with one-button VCR recording that was developed and is marketed by StarSight Telecast, Inc. Viewers using StarSight can select a desired program by title or by specific theme category, as well as create a customized channel set-up of their own viewing preferences. StarSight is being used as the primary navigational tool for consumers who want to find out what is on TV in Viacom Cable's 77 channel system.

StarSight Adds Value for Cable Operators

More than 75 percent of StarSight users in the test said the on-screen TV program guide increased the value of cable by helping navigate the multitude of program choices. Approximately 67 percent said the addition of StarSight would be incremental and they would be unlikely to make any changes to their cable TV services.

StarSight helps cable operators generate additional revenue by directing consumers to premium channels and pay-per-view programming. StarSight does not require a separate cable channel to deliver service since its signal is carried on the vertical blanking interval (VBI) of the Public Broadcasting System (PBS). StarSight is currently broadcast to 98 percent of U.S. households.

"StarSight enhances cable program viewing by helping customers easily find their favorite TV entertainment including pay-per-view programming, which in turn, results in an increased usage of these services, benefiting cable operators," said John Goddard, president and CEO, Viacom Cable. "StarSight has increased customer satisfaction with cable TV without increasing the number of channels."

Viacom began deployment of StarSight-equipped General Instrument/Jerrold CFT 2900 set-top boxes in May, 1994. Viacom helped consumers get started with the StarSight interactive on-screen TV guide by providing a StarSight demonstration and usage tips on its information channel.

Zenith Customers Report High Level of Satisfaction

StarSight also recently completed a separate consumer electronics survey covering customers who own a StarSight-equipped Zenith TV. The survey, which was conducted by The Verity Group, Inc., a leading research firm specializing in consumer electronics, found an extremely high level of customer satisfaction. More than 90 percent of respondents found StarSight's unique one-button VCR recording capability very useful, with the one-screen program guide feature also rated highly at 87 percent. Most customers surveyed were both recording more programs with StarSight and had stopped using paper TV program guides.

StarSight is available from cable operators via Zenith MM2000 set-top boxes, General Instrument/Jerrold 2900 set-top boxes; and from satellite retailers and distributors with Uniden America Corp.'s satellite Integrated Receiver Decoder (IRD). Consumer electronics products currently available to the consumer include StarSight-equipped Zenith and Mitsubishi TVs, the StarSight CB 1500 receiver marketed by Magnavox (Philips Consumer Electronics Company) and in May, the first StarSight-equipped VCR marketed by Samsung Electronics America, Inc.

Viacom Cable, headquartered in Pleasanton, Calif. is a division of Viacom International Inc. Viacom Cable owns 13 cable TV systems and serves over 1.1 million customers in California, Tennessee, Washington, Oregon and Ohio.

StarSight Telecast, Inc. develops and markets StarSight, a patented on-screen interactive TV program guide with one button VCR recording. StarSight is available throughout the United States by subscription, for less than $5 per month, to TV viewers whether they receive television programming by cable, satellite or over-the-air broadcast. StarSight Telecast, Inc. is a publicly held company backed by strategic partners Viacom International Inc., Spelling Entertainment (a Blockbuster Entertainment company), Cox Communications Inc., Tribune Company, KBLCOM Inc. (a division of Houston Industries) and Providence Journal Company. The company's stock is traded on the NASDAQ national market system under the symbol SGHT.

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Note to Editors: StarSight is a trademark of StarSight Telecast, Inc.

CONTACT: StarSight Telecast, Inc.

Caroline Beck, 510/657-9900

Regis McKenna Inc.

Natalie Barreiro, 415/354-4497

Rob Fuggetta, 415/354-4404