WorldGate inks iTV content deal

Susan Rush
from CED Broadband Direct, July 31, 2002

Interactive television is not all about fun and games, it can be used to deliver the latest news, too. WorldGate is looking to satisfy digital cable subscribers' need to be in "the know" through an iTV content deal with The Associated Press.

The partnership will deliver a 24/7 updated news and information service to WorldGate's iTV subscriber base systems in Canada, the United States and Latin America. The Associated Press will supply the content, which will be available in English, French or Spanish, depending on the region.

Financial terms of the deal were not disclosed.

Earlier this month, WorldGate closed a deal to deploy its interactive television service to Comcast's digital cable customers in Huntsville and Tuscaloosa, Ala.

In May, WorldGate posted first quarter revenue of $3.2 million, a 22 percent drop from the $4.1 million reported in the first quarter 2001. Reduced equipment sales fueled the drop, said WorldGate. The company's quarterly net loss was $4.2 million, or 18 cents a share. Analysts on average were expecting a loss of 24 cents a share, according to Thomson Financial/First Call.