Ray Van Eng (05/26/97)
But the survey also cautioned that to crack the market, TV set top boxes makers have "to develop and market user friendly products that appeal to consumers and to price them at acceptable levels." That is because when people were asked to pay for the expensive hardware and monthly fees, their enthusiasm dips to a mere 5%. However, FIND/SVP insisted that the interest in using non-PC devices to surf the 'Net is certainly there. Quite a few companies seem to be in agreement with FIND/SVP, judging from the way that these industry players jockey for position to offer new products and services or in some cases, just ideas. By August this year, the American Interactive Media (AIM) says it will showcase a set-top box that would provide Internet access via a regular TV set. The box which was originally priced at under $400 will be given away to consumers for free in exchange for a subscription to the WebPASSPORT service which AIM is putting together with content provided by popular magazines, cable TV networks and national newspaper publishers. The WebPASSPORT service will cost $30 a month. Just last week, Oracle Corp's Network Computer Incorporated and Navio Communications, a former Netscape affiliate company say they will merge to form a new company under the NCI name and will develop software to be used by network computers and Internet appliances. There is very little doubt that the Oracle/Netscape alliance is aimed squarely at the Microsoft/WebTV pairing. Instead of a fight for desktop browser dominance, it is now a battle to win consumers over to the Internet via non-PC devices. This time around, proprietary content may play a bigger role in determining who has the upper hand. Microsoft with its MSNBC venture and the Sidewalk series of regional web sites may seem to have a head start, but this is still early days. In a recent filing with the Securities and Exchange Commission, Microsoft revealed that WebTV, the company it intended to acquire has gotten only 56,000 subscribers as of April 1. Clearly, even with the presence of high profile companies like WebTV backed by a national television ad campaign, the Internet TV market has so far failed to achieve critical mass. Though WebTV is losing $29.4 million at year end, the company still represents a good investment for Microsoft (even at a cost of $425 million) because of the Redmond software giant's eagerness to get into the consumer Internet market. Zilog, a supplier of TV semiconductor products and PlanetWeb, a software firm say that they have a reference design that will help OEMs (original equipment manufacturers) build Internet set-top boxes that can be retailed for less than $200. In contrast, a competitor like Curtis Mathes is selling a similar device for $399. Sony and Phillips have slashed the price of their WebTV boxes to $250 from $299 because of poor sale. Unlike WebTV which is dedicated for use with the WebTV Network, the Zilog/PlanetWeb unit will provide Internet and email access with any Internet service provider (ISP). The WebTV service is currently only available in the United States for $19.95 a month and will soon be introduced to Canada and Japan later this year. On the international front, Singapore is broadcasting selected Internet content, web pages, software and other information to television and personal computer screens, essentially forming an intranet system around the island state of about 3 million people. DataCast, as the service is known will transmit about one hundred of the most popular web sites including Netscape, Microsoft and others to Singapore users, giving them quick access to these sites and be able to target the service more specifically. During the trial period beginning now, an adapter card is required for the PC, and by early 1998, television set-top boxes will be available for TV reception. In Hong Kong, The Hongkong Telecom IMS (interactive multimedia service) is on track to provide video-on-demand, Internet access and electronic shopping services via the TV to about 250,000 households by 1999. The service will begin right after the Chinese takeover of the soon to be former British colony in July 1997. In England, the British Sky Broadcasting Group (BSkyB) together with British Telecom, Midland Bank and Matsushita Electric has formed a new company called British Interactive Broadcasting (BIB) Ltd. to provide Internet access and digital interactive services including home banking, shopping, travel, education and other options to TV viewers in the UK. A digital satellite set-top box (GBP£200) hooking up to a digital satellite dish and a telephone line is required to gain access to the digital TV broadcast and interactive services. The first phase of the service will become available in the summer of 1998, following the introduction of the BSkyB digital satellite service. Oracle Corp. and Digital Equipment Corp. are said to be the two major technology partners for the venture. |