WebTV Update

Microsoft’s WebTV has revealed details of its upcoming UltimateTV service and has announced that several networks will create compatible enhanced TV programming. The company also settled a claim of false advertising brought by the Federal Trade Commission (FTC) without admitting wrongdoing.

The announcements are part of a Microsoft strategy to position WebTV as enhanced TV, as well as easy Internet access. Although Internet functionality will remain part of WebTV, the change in emphasis suggests that Microsoft is seeking new markets for the troubled product line. Subscriber numbers have been stalled around 1 million for the last year, and new Internet appliances such as the MSN Companion seem aimed at the same demographic to which WebTV was originally marketed—computer-phobic consumers looking for an easy way to get on the Internet.

Curiously, although Microsoft has announced pricing for UltimateTV, it has not announced a date for its availability. It appears that UltimateTV will miss this year’s Christmas buying season, while competitors have had almost identical products on showroom floors since October. The September announcement of WebTV-compatible enhanced programming on CBS was also lacking in important details, such as availability date and the types of enhancements planned.