CABLEVISION SYSTEMS TO OFFER INTERACTIVE VIDEO SERVICES USING AT&T NETWORK SYSTEMS END-TO-END DIGITAL VIDEO SYSTEM.

ANAHEIM, CALIF.--(BUSINESS WIRE)--Nov. 30, 1994--AT&T Network Systems and Cablevision Systems Corp. announced today they are working together to provide an "end-to-end" digital video solution for the commercial deployment of enhanced pay-per-view (EPPV) and video-on-demand (VOD) to Cablevision subscribers, beginning in mid-1995.

Cablevision Systems, the fifth largest cable television service provider in the United States, has begun testing the digital server, cable network and a limited number of prototype digital boxes in Long Island, NY under the terms of an agreement with AT&T. Cablevision has plans to reach a significant number of subscribers with EPPV and VOD services by the end of 1995.

"This service will give our subscribers the ability to get the movies and other entertainment and information features they want, from the comfort of their homes, when they want them, delivered instantly. It will put Cablevision and its customers on the cutting edge of technology in a way that's meaningful and practically useful to them," said Cablevision Systems vice chairman Marc Lustgarten.

AT&T Network Systems will supply Cablevision Systems with digital video equipment and system software necessary to deliver the new services, including video server software developed by Interactive Digital Solutions, AT&T's recently-announced joint venture with Silicon Graphics, Inc. High-speed switching of video streams will be handled by the AT&T GlobeView(a)-2000 Broadband System.

The Cablevision solution also encompasses an AT&T Digital Video Home Terminal, for connection to a standard television set in the subscriber home. Network elements for the headend include an MPEG-2 program encoder system as well as digital cable modulators and encryption and access control systems. As a part of the agreement, AT&T Network Systems will provide installation and engineering services at the headend for Cablevision's first 20,000 subscribers.

"With such a large undertaking, we need a company that can provide a complete end-to-end system, as well as one with the expertise in building and operating two-way, digital communications networks," said Wilt Hildenbrand, vice president - technology, Cablevision Systems.

Cablevision expects to expand its video service offerings in the future to include additional interactive entertainment, information, advertising and transaction services.