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To: BillyG who wrote (38152)1/11/1999 4:28:00 PM
From: John Rieman  Read Replies (4) | Respond to of 50808
 
Interactive DVD Appliances.....................................

zdnet.com

Interactive DVD Appliances Head Home
By Karen J. Bannan
January 11, 1999 10:33 AM ET

Web television may be knocked off the counter in favor of a new kind of interactive device: the multimedia home appliance.

Leading the way at last week's Consumer Electronics Show was a product called Advantage 2000, from browser developer Spyglass and consumer product maker CMI Worldwide. Aimed at bringing interactivity to the kitchen instead of the living room, the device combines a cable-ready TV with Internet access, a stereo, video security monitoring and the ability to play digital videodiscs (DVDs). It sports a greaseproof, shockproof and washable keyboard.

"We've done a lot of research, and it shows people in a kitchen setting are interested in e-mail and shopping,'' said Bob Lamdon, chief executive officer of CMI, which is known for hawking kitchen appliances such as the Juiceman juicer and Breadman bread-making machine.

Portable versions with a 9-inch screen will be sold for $950 through Sears and other department stores, beginning in May; a 14-inch flat-screen version, which will be installed by home contractors, will cost $2,400.

The CMI device appears to be the forerunner of a new type of home entertainment and Net access device that uses DVD players as its centerpiece, electronics executives said last week. Several consumer electronics companies, including Sony Electronics and Philips Consumer Electronics, plan to announce later this year DVD players that use WebTV Networks' software to access the Web, they said.

Sony spokeswoman Michele Caselnova said the company has no immediate plans for a DVD player with Net access, but she added: "That's not to say that won't change in six months."

WebTV Networks acknowledged that a DVD player with Net access could have commercial potential. "Conceptually, [DVD] is an interesting way to augment the box. This is the kind of functionality that people are going to be using to differentiate [their products]," said Bill Keating, a vice president at WebTV Networks, a Microsoft subsidiary.

One analyst said melding DVD and the WebTV service is a smart move, but cautioned that correct marketing will be imperative. "Videophiles are buying DVD players. Are these the same people who buy WebTV?" asked Bruce Leichtman, director of media and entertainment strategies at The Yankee Group, a technology consultancy.

WebTV Networks last week announced a pact that gives it access to homes via satellite. EchoStar Communications said its new Model 7100 satellite receiver will be WebTV-enabled. A new service will combine the WebTV experience with digital video recording capabilities, video games and an advanced electronic program guide, WebTV's Keating said. The 7100 receiver will ship with a 9-gigabyte hard drive that will act as a cache, "recording" satellite programming and allowing users to download and play video games.

Meanwhile, Royal Philips Electronics announced strategic relationships with digital satellite system provider DirecTV and interactive television software provider TiVo, which will let users capture TV programming, data and e-commerce services, officials said. The service, called Personal TV, will be included in several TV-ready products, including DirecTV receivers. The first product - a Personal TV receiver designed to capture up to 10 hours of programming - is expected to ship in March.