1st Commercial Launch of Broadband Interactive TV
I attended two shareholder's meetings in Bellevue, WA this past month. INSP's on May 21, and Charter Communications (CHTR) the day before yesterday, on June 6. When I get a chance, I'll try to offer a few personal thoughts regarding both of those meetings.
At the end of the INSP meeting, I had a nice chat with Bill Savoy, and another nice chat with Paul Allen, following the CHTR meeting this past Wednesday. My discussions with both of them focused on the upcoming CHTR roll-out of their interactive TV service, and what roll INSP has with them in the DIGEO Broadband partnership.
Some of you old-timers on this thread will recall that on October 4, 1999 it was announced (through much fanfare at the time), that a new organization had been formed, called Broadband Partners (later becoming DIGEO Broadband). It's purpose would be to develop the "broadband" technology allowing for the merging of the television with the PC (and Internet)...a long-held dream of Paul Allen's. It would first be released to the world through the (Allen controlled) cable company, Charter Communications. The three key partners of the venture were GNET (now INSP), CHTR, and Vulcan Ventures.
I just reviewed my notes from the GNET shareholder's meeting of March 17, 2000, which was held approx. 5 1/2 months after the "Broadband Partners" announcement. In my notes I had written that during Russell Horowitz's presentation he stated something like, "We hope to be the first to market with (broadband) TV set-top boxes. We hope to have the broadband Interactive TV portal released sometime later this year (2000)."
As many of you know, Digeo had been working with both MSFT TV and Liberate TV, developing the middleware for TV set-top boxes.
BTW, in the same edition of today's Seattle Times, another article mentions 7 local (Pacific NW) dot-com companies trading for close to, or in some cases less than, the balance in their bank accounts...as possible buyout targets. In a table with the article, 18 local companies are listed, one of which is INSP...which it shows having "cash" (as of 3/31/01) of only $180.36 million.
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Well, this morning the following article was published in today's Seattle Times. Perhaps it will help explain why some of us are so interested in the roll INSP might be playing regarding the DIGEO Partnership, and the development of Interactive TV: seattletimes.nwsource.com
Friday, June 08, 2001 - 12:00 a.m. Pacific
PORTUGAL DEBUTS MICROSOFT INTERACTIVE TV By Barry Hatton The Associated Press
Microsoft CEO Steve Ballmer tries an interactive TV set at the Portuguese cable company TV Cabo during the official launch of the service Thursday in Lisbon.
LISBON, Portugal - Microsoft yesterday launched its bid to carve out a share of the fledgling interactive-television market with the commercial rollout of the world's first broadband set-top boxes.
Interactive television, offering Internet access and online services through TV sets, is expected to generate billions of dollars in revenue worldwide in coming years. The market for personal computers, meanwhile, has registered sluggish growth. Portugal's TV Cabo became the world's first cable company to deploy advanced set-top boxes running Microsoft's new TV software. Microsoft Chief Executive Steve Ballmer described the launch as "a landmark day" for interactive television because it introduced innovative technology and a new source of revenue for the software powerhouse. "I'm very optimistic about the market on a global basis for interactive television," Ballmer said during a news conference. Microsoft declined to provide details of their sales targets. London-based analysts Ovum Consulting predicts the number of households worldwide capable of receiving interactive television will grow from 62 million to 357 million by 2006, while sales are expected to grow from $58 million last year to $44.8 billion. The set-top box provides online shopping, home banking, games, digital video recording, Internet access and e-mail. The system is operated from a wireless keyboard or a handheld remote-control device. Ballmer said Microsoft also is developing a lower-end set-top box with a more limited range of features. Microsoft has spent six years investing in the research and development of software for interactive television. However, months of setbacks, including snags with adapting the architecture of its PC operating software to the more limited processing power of set-top boxes, delayed the debut. Tests over the past six months in Portuguese homes were successful, TV Cabo said. "We all believe the technology is ready," Ballmer said. Microsoft faces competition from rival systems developed by Liberate Technologies and OpenTV, both based in California. TV Cabo, with nearly 1 million subscribers, was selected as Microsoft's partner because of its "foresight and vision" in developing interactive television, Ballmer said. It is charging $13 per month for the box and access to the interactive service. There is an initial cost of $127. TV Cabo President José Graça Bau said his company expects to show a profit on the system after three years. "Of course, interactive TV is only now being born, and everyone has to change the way they use their TV sets," Graça Bau said. Interactive TV has spread quickly in Europe, though its growth has been slower in the United States. The interactive satellite system of Britain's BSkyB, controlled by Rupert Murdoch's News Corp., has nearly 5 million subscribers, while the comparable service of France's Canal Plus has 1.5 million users. Canal Plus operates similar services in Spain, Italy, Belgium, Poland, Scandinavia and parts of Africa. Microsoft also announced interactive-cable -TV deals with operators in Mexico and Israel.
Under one deal, Mexico's Grupo Televisa unit Cablevision will begin testing the Microsoft TV server and software using advanced, DCT5000 set-top boxes from Motorola. Cablevision hopes to begin the trial later this year, with a goal of eventually upgrading 30 percent of its subscriber base to the service. Microsoft and Cablevision expect to deploy at least 350,000 set-tops over the next three years, the companies said. In the second deal, Israel's Matav Cable Systems Media said it would begin field trials of the Microsoft system later this summer. Matav is one of Israel's three cable-television providers, and it serves roughly 25 percent of that country's population, it said.
Material from Reuters was used in this report. Copyright © 2001 The Seattle Times Company |