article On AOL TV & WebTV
e-town.com CES LIVE: AOLTV 'SNEAK PEEK' Surprise! It looks a lot like AOL on TV ÿ 1/8/2000
By Stewart Wolpin
LAS VEGAS, NV, January 8, 2000 -- The odds are 20-1 that WebTV will be overwhelmed when AOLTV launches later this year. These odds represent the disparity in the current subscriber base of the two services, which is the primary reason AOL will likely dominate the Web-via-TV market with its mere presence. AOL was giving carefully orchestrated demonstrations of AOLTV, which is in beta, at its booth here at the Consumer Electronics Show. AOLTV will be available via an integrated DirecTV satellite receiver and via a Philips set-top box with wireless keyboard. There is no word on pricing or exact availability. What does AOLTV look like? It looks like AOL and, well, a bit like WebTV. Most of the AOL screens are opaque, allowing you to see through them to the TV picture behind. In other situations, such as when using email, the TV picture is shrunk to quarter size and placed in the upper right-hand corner. When you're on the Web via AOL, you can choose to disappear the TV picture altogether or to place it in the corner of the screen so you can watch both images, just like you can do with WebTV Plus. The service also includes AOLTV Guide, an electronic program guide (EPG), automatic notification of email receipt, and the familiar raft of AOL features, such as Instant Messaging, buddy lists, pictures and chat. It even has that familiar voice harping "You've got mail!" In short, it's literally AOL on your TV with some TV-related enhancements. Demonstrators noted that it takes just 10 to 15 seconds to set up. Moreover, you can set your existing AOL account and preferences. AOLTV is part of a wider "AOL Anywhere" effort that's designed to make AOL ubiquitous on any wired and wireless PC/Internet-enabled device. What, me worry? As noted above, AOLTV has a built-in audience of 20 million current subscribers, whereas WebTV has struggled to gain 1 million users in its few years of existence. "Our members have been asking us to deliver AOL to them in more ways," asserted My-Chau Nguyen, AOL's VP of marketing for devices. These lopsided numbers don't seem to faze the likely victim, WebTV, which is buoyed by its owner Microsoft. "They are validating our commitment to this space," said Rob Schoeben, WebTV's senior marketing director. He explained that WebTV offers not only the Internet, but also interactivity (such as the ability to play along with Jeopardy!) and personalized TV functions, such as the ability to record programs onto an internal hard drive, like a Personal Video Recorder. "We think the advantage we have is the deep integration of these services," noted Schoeben. "AOL needs the other two pieces [other than Web connectivity] before they can compete with us in this space." WebTV has had a four-year head start in acquiring experience and strategic partners, including Microsoft (which bought WebTV two years ago), Sony, Disney and other content providers, to create a deep and deeply integrated service. WebTV is also moving to integrate MSN functions into WebTV. "We think consumers will see more bang for the buck," says Schoeben. Equally confident AOL, on the other hand, pooh-poohs this "we'll do better because we are better and for longer" attitude. "We don't see us competing," countered Nguyen. "WebTV has only 1 million users versus 20 million AOL subscribers." Plus AOL is working with similar hardware partners and easily available technology. WebTV has an integrated DISH Network satellite receiver with a built-in Personal Video Recorder (PVR). AOL is working with DirecTV and, "if hard-disk recording is what our customers want, then we'll supply it." AOL also has not announced any interactivity features.
In addition, AOL subscribes to ATVEF (Advanced Television Enhancement Forum), a standard set of formats and protocols that's intended to make sure all devices present the Web on TV in the same manner. Then, too, AOLTV hasn't officially been launched. Both sides still have some time to gird up for the battle for your TV screen. |