New Boxes, Platform for MSN TV

MSN TV, a set-top box that lets users access the Internet using a TV and a simple remote control, is undergoing its most significant update since Microsoft acquired WebTV (MSN TV’s predecessor) in 1997. By adding the ability to connect to home networks, Microsoft hopes to attract sophisticated users who want an inexpensive network node for Internet access and digital media playback, in addition to MSN TV’s traditional audience of non-PC users. However, monthly service fees and overlap with other consumer digital media products could hamper efforts to attract this new audience.

Because Microsoft has offered so many TV-related products over the years, its product names can be confusing. MSN TV is the direct successor to the original WebTV set-top box and service—Microsoft changed the name in 2001, but never stopped selling the product. MSN TV is completely separate from Microsoft TV, a set of platform products with which TV operators can deliver interactive services, such as video-on-demand, to their customers. MSN TV is also distinct from UltimateTV, a digital video-recording device and service that is no longer sold.