Still in WAVO. Loving The Action. Interesting Article.
I don't know if this article will be exactly on-point, but
it's from internetnews.com and covers one of Web
TV's competitors... that is, seemingly, on the edge of a complete
breakdown.
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NetChannel, in crisis, seeks funding
ÿÿÿÿ SAN FRANCISCO April 1 (Reuters) - NetChannel Inc., a provider of Internet access for
television-based devices, is in a financial crisis and is seeking funding or a major financial partner, but
a spokeswoman said rumors it has shut its doors are false.
ÿÿÿÿ "The rumors about NetChannel's situation are not true," the spokeswoman said. "Our offices are
open and we have not filed for reorganization under Chapter 11 (bankruptcy law). We are moving
forward with our long-term plan to seek financing."
ÿÿÿÿ However, NetChannel Chairman David Atkinson told CNET's News.com online news service
that the company's board of directors is considering a Chapter 11 bankruptcy filing, but said no
decision has been made.
ÿÿÿÿ NetChannel, based in South San Francisco, provides Internet access for television-based
network computers sold under the RCA brand by Thomson Consumer Electronics.
ÿÿÿÿ "Obviously, the best option is for NetChannel to stay in business," said a spokesman for Thomson
in Indianapolis. "We are not looking at buying them. We are pretty much hardware-oriented." He
said Thomson is looking at its options to find another Internet service provider, if NetChannel goes
out of business.
ÿÿÿÿ So far, Thomson has shipped about 50,000 units to the retail market, but it was not clear exactly
how many units have been sold of its system, which competes directly with Microsoft Corp.'s
WebTV Networks.
ÿÿÿÿ "After Christmas, the (total) number was barely 10,000 units," said Gary Arlen, president of
Arlen Communications in Bethesda, Md. "They have been struggling for a while. WebTV has only
sold about 300,000. It doesn't bode well for that whole category, which is too bad because it's very
cool."
ÿÿÿÿ The NetChannel spokeswoman denied reports that the company has sent home any of its 125
staff members.
ÿÿÿÿ "Senior management at NetChannel has continued to brief NetChannel employees on the status of
the negotiations," she said. "NetChannel employees are at work and are being updated on a regular
basis on the status of the ongoing financing developments."
ÿÿÿÿ NetChannel is in talks with a number of companies, including some major media companies, she
said. Recently, rumors surfaced that NetChannel was talking to online giant America Online Inc.
ÿÿÿÿ "AOL is exactly the kind of company that would be interested in partnering with a company like
NetChannel," she said. Tricia Primrose, a spokeswoman for America Online, based in Dulles, Va.,
declined to comment.
ÿÿÿÿ "We have been moving forward to finance the company and once the round of is completed, we
will make an announcement about the financial position of the company," NetChannel said. |
