MS could deal with UK pay TV firm on WebTV

UK pay TV firm Flextech may join up with Microsoft on a project designed to inject some life into the nascent market for interactive television.

The move would take the pair up against BIB, the BSB/BT startup, and could cloud the future of WebTV Networks, which is owned by Microsoft. WebTV is expected to debut in the UK in the next 12 months. A report in this morning's Financial Times suggests WebTV software could be employed in the venture.

London-based Flextech rents satellite space to show several satellite channels in the UK including UK Gold, Bravo and Playboy TV