TV Division: Back to Basics

Acknowledging that cable companies will not be rolling out advanced TV set-top boxes in the near future, Microsoft has created a new client for the basic boxes already in many homes. The new client, MSTV Interactive Program Guide (IPG), will initially offer a searchable electronic program guide and eventually support video-on-demand. The TV Division will also work with the Windows eHome Division to create an embedded platform for distributing digital media to multiple devices in the home. Microsoft has also eliminated 61 positions in the TV Division.

The announcements follow a Jan. 2002 reorganization in which Moshe Lichtman took over for Jon DeVaan as vice president of the TV Division, and several teams, including UltimateTV, were downsized or moved to other parts of the company. (See “TV Division Changes Signal New Realism About Market” on page 18 of the Mar. 2002 Update.)

Advanced Boxes Delayed

Microsoft had expected cable operators to begin deploying advanced set-top boxes, such as Motorola’s DCT-5000+, which are more expensive and boast faster processors and more built-in memory than the current generation. So the company focused most of its effort on creating a client, MSTV Advanced, that can run only on the advanced boxes and that supports a wide range of features, such as digital video recording, video-on-demand, home networking, Internet-on-TV, interactive programming, and Voice over IP.