Microsoft’s TV Platform Targets Markets Beyond Interactive TV

Microsoft staked a big claim in the interactive TV market and released more details about the Microsoft TV (MSTV) platform at the Cable 2000 conference in May. As a result of a flurry of deals announced at the show, Microsoft can now boast more than 14 million TV set-top boxes (STBs) committed to using the MSTV platform, in a market that is expected to reach 30 million installed interactive TV STBs by 2003. In the near term, interactive TV will enable new services for cable and satellite television customers, such as e-mail, Web surfing, and interaction with TV game shows. In the longer run, the MSTV platform will support a range of advanced communications services, such as residential telephone service and videoconferencing.

The New Communications Marketplace

MSTV is entering a volatile market. Cable and satellite TV operators are confused about how they will integrate client/server computer systems into their existing broadcast infrastructure. The market is also uncertain about the revenue potential for interactive services among TV audiences, which are usually quite passive in their viewing habits. Despite the doubts and confusion, cable, satellite, and telecommunications companies are lining up alongside hardware and software vendors to stake a claim in the market, because they see it evolving from a TV-centric service into a lucrative market for delivery of a wide range of communications services.