To: BillyG who wrote (37410 ) 11/24/1998 11:43:00 PM From: J Fieb Respond to of 50808
Another take on AOL/SUNW set tops....I hope SUNW isn't too busy this wk for those DVB people that came to see them..upside.com AOL/Netscape May Focus on Settops November 23, 1998 by Phil Harvey The near deal between America Online Inc. and Netscape Communications Corp., with other deals pending between AOL and Sun Microsystems Inc., should give Microsoft Corp. conspiracy theorists more to chew on than a whole week of Thanksgiving dinners. Though the acquisition would make for a whole new level of competition in the Internet and e-commerce world, analysts say one interesting facet of such an alliance could fill the space on top of your television: settop boxes. According to a company statement issued Monday, AOL confirmed that it is in discussions with Sun regarding "a possible development and marketing agreement for e-commerce and new Internet devices which would involve Netscape products." "I don't think Sun's role in this deal is going to be that of a garbage collector picking up leftovers," says Sun watcher Eric Brown, senior analyst at Forrester Research Inc. in Cambridge, Mass. "My guess is Sun's involvement will be in new Internet devices, settop boxes." "America Online has learned that customers like a mediated online experience," Brown continues. "And [AOL needs] a Java-enabled settop box, with Netscape's browser to deliver AOL's client software to customers." Indeed, one common interest of all companies involved is to get further away from a Windows-dominated world, perhaps by getting closer to consumers' living rooms. That's why on May 6, AOL acquired Netchannel Inc., a Web-enhanced TV company. This acquisition was supposed to accelerate the development of a settop box version of AOL's online service. Sun, too, has been pining for a player position in the settop box melee. In late August 1997 it completed the acquisition of Diba Inc., a technology supplier for information appliances. Since, Sun's been hard at work on developing embedded device technology. Netscape, however, provides the most interesting link in a possible chain, according to analysts. In August 1996, Netscape formed its Navio Communications affiliate, which merged with Oracle's Network Computer Inc. (NCI) in May 1997 to develop software for non-PC Internet appliances. This after Microsoft bought Web TV for $425 million in April 1997. Network Computer, which has both Netscape CEO Jim Barksdale and Oracle CEO Larry Ellison on its board, remains an independent company, says NCI spokesperson Randy Brasche. The browser technology it uses in its software is based on Netscape's Navigator. In September, it was reported that NCI had signed a deal to provide AOL with some of its settop box technology. Responding to those reports, Brasche said, "We haven't announced anything." With all the kids on the block ready to gang up against Microsoft, it seems they will make an effort in the areas where Microsoft is seen as vulnerable, such as media properties, information appliances and, quite possibly, settop boxes. CUBE/DIVI can you help these guys they sound like they are in a hurry!!