Interactive TV primer
Even at this nascent stage of the industry, there are too many products to list here. Some of the major ones are:
WebTV
Arguably, the most well-known player in the market, WebTV Networks Inc. provides software and services for Web sites and TV programmers to deliver interactive content. The company was bought by Microsoft Corp. on Aug. 1, 1997. Sony Corp., Philips Consumer Electronics Co., Mitsubishi Consumer Electronic America Inc., and Hitachi Ltd. sell consumer electronics based on WebTV's latest set-top configuration -- the WebTV Plus.
NetChannel
NetChannel Inc.'s Internet TV service competes with WebTV's service, allowing TV audiences to access Web-based services using their television sets. Unlike WebTV, NetChannel relies on others to provide the set-top hardware and software.
DTV Navigator and Custom Connect Server
The "operating systems" created by Network Computer Inc. to allow cable operators to deliver interactive content to the home. The Custom Connect Server Suite manages the subscribers and routes the proper content to each. The DTV Navigator allows the selection and viewing of interactive content by cable customers.
Intercast
Intel Corp.'s technology for integrating various media with the TV video stream. Intercast has been adopted by several cable channels including The Weather Channel, CNN, NBC, MTV Networks, and Lifetime Television. On Jan. 10, Network Computer Inc. announced it would support the technology in its DTV Navigator.
THE PLAYERS
Cable companies and channels have all jumped on to the interactive TV bandwagon to one extent or another. Much of the road they're on has been paved by the computer industry. Here are some of the key players:
Microsoft Corp.
Finished its merger of WebTV Networks, Inc. in August 1997. Now the company has successfully pitched its Windows CE operating system to cable operator Tele-Communications Inc. (TCI) as the operating system of choice for its set-top boxes. Much of the decision by the Federal Communications Commission not to require digital TV to be high-definition - thereby leaving room for interactive content -- was attributed to Microsoft's lobbying more than a year ago.
Intel Corp.
The microprocessor giant leaped into the living room by partnering with Compaq Computer Corp. and Microsoft Corp. on its PC Theatre initiative. It softened that position somewhat last December when it decided to support consumer electronic companies' efforts to integrate digital circuitry into the TV. In early January, NCI announced it would support Intercast -- Intel's technology for integrating various media into the TV video stream.
Network Computer Inc.
The result of a merger between Oracle Corp.'s original NCI and Netscape Communication Corp.'s Navio Communications, the new NCI sells the software to allow homes and businesses to use network computing. The company's current products include network computer solutions for businesses, and software for enabling cable companies to deliver interactive content to the home.
Tele-Communications Inc.
The cable provider has made several announcements in the last two months that helped to solidify the direction of the interactive TV market. In December, it announced that it had signed a deal with set-top box maker NextLevel Systems Inc. for up to 12 million digital devices over the next three to five years. In January, in separate announcements, TCI indicated that Microsoft would provide the operating system and Sun's Java would be the foundation of the applications interface.
Time-Warner Cable
The second-largest cable provider with more than 12.3 million basic customers, Time Warner has taken the technical lead in the interactive TV market with its Pegasus program. The program calls for the roll-out of a high-bandwidth two-way network and digital set-top boxes throughout this year.