Microsoft to Raise WebTV Plus Monthly Fee to $24.95
Redmond, Washington, March 23 (Bloomberg) -- Microsoft
Corp.'s WebTV Networks said it will increase the monthly
subscription for its WebTV Plus Service by 25 percent to $24.95
to cover the costs of more expensive features.
The price increase takes effect on June 1 though subscribers
who register before then can keep paying the current rate of
$19.95 through June 1, 1999. The monthly subscription for WebTV
Classic will remain at $19.95.
WebTV Networks, which Microsoft bought last year, has more
than 300,000 U.S. subscribers to its service. It allows viewers
to surf the Internet through their TV sets linked to set-top
boxes. In December WebTV Networks introduced an upgraded version
called WebTV Plus, leading to average use of 41 hours a month
online, the first measurement of usage disclosed by the company.
''We are encouraged by the enthusiastic reaction to WebTV
Plus, although the features that have led to such high usage are
unfortunately more expensive,'' said Steve Perlman, president of
WebTV Networks. WebTV Plus has an electronic programming guide
and on-screen icons linking the viewer to related Web sites.
Those features are unavailable through WebTV Classic.
WebTV Networks also announced a set of additional features
that will be provided in an automatic free upgrade to WebTV Plus
in the third quarter. They include a week's worth of TV listings;
automatic notification of programs of interest; and personalized
news, stocks and weather that can be received and displayed on
the Web Home page.
WebTV Plus subscribers spend 70 percent more time on the
Internet than subscribers to online services using personal
computers, the company said. ''This demonstrates the unique WebTV
ingtegration of television and the Internet,'' the company said.
U.S. licensees of WebTV are Sony Electronics Inc., Philips
Consumer Electronics Co. and Mitsubishi Consumer Electronics
America. WebTV has recently expanded to Japan and the U.K.
Shares of Microsoft rose 1 9/16 to 89 1/2.
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