Discussion with VEIL Interactive Technologies' Ted Koplar

12 February 2002

See also "VEIL Technology Inserts Data into Video."

IGN: You're starting to explore possibilities within the interactive gaming market. Do you think there are some possibilities there for the technology?

Ted Koplar: Yes. We are certainly not industry experts within the gaming community, but we have developed a very efficient system that can be incorporated relatively easily.

Our first real venture with any form of gaming was at the (North American Association of State and Provincial Lotteries and World Lottery Association) convention last year and our success rate with the promotion was phenomenal. We really just wanted to show our capability with the technology and we were rather overwhelmed with the buzz we created.

IGN: What is the approach you take in trying to sell the technology to the lottery industry or the gaming sector?

TK: The beautiful thing about using VEIL is that the consumers don't need an extra set-top box or any cumbersome hardware to make it work.

Any format that uses those means is going to have a limited scope in how many people it can reach. Right now there are roughly 4 million households in the U.S. that have digital TV or the capability to run interactive TV. With our system we can get right into the 104 million homes in America that have a TV in them. Right now it really isn't that worthwhile for the content provider when they are only reaching a base of 4 million households. While that certainly is a high number on the surface, when you can add 100 million to it without having to implement any major hardware, the proposition can become a lot more meaningful to the content provider.

IGN:Are you starting to approach those content providers within the entertainment industry?

TK: Yes. We can go to them and show them how much easier it is to implement something like these then they are going to listen. While making it easier we in turn also make it more fun for both the content providers and the consumers.

They know what they want and we are able to provide it for them at a more sustainable cost. A lot of times we can integrate the system and make it an enhancement to what they are already doing with their shows.

IGN:Can you see a day where the system is being implemented with sports betting and other gambling-related options?

TK: I think so, but it will probably be sometime before that happens. Obviously the legal issue from the U.S. stand point would have to change before we were able to enact such options, but there could be a high demand for such a system in Europe and other parts of the world.

The technology can be used live during a broadcast, it is the same technology that allows for stations to put up severe weather warnings so there certainly could be the ability to put up live betting lines and other options for sports betting.

Any number of devices can be set up to communicate with the system. A remote control, a PDA, a cell phone are just a few examples. We would look at a royalty fee for that device but the idea would be that the process would be as transparent as possible.

We have already seen with our test promotion with "Who Wants to be a Millionaire. The response we got from that campaign was well beyond our expectations.

What we were able to prove with that campaign was that the commercial was the event. There aren't too many times--outside of maybe Super Bowl Sunday--where advertisers can be certain that their commercials are being watched. With our system we can not only assure the advertisers they are being watched, but that some sort of action will be taken from them. Depending on the goal of the campaign, that can mean a number of different things, but the important element is that the viewer is getting involved, and we think that can cross over to the gaming industry.

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