Internet Tv Software

San Jose-Microsoft Corp., leaped head-first into the digital set-top box (STB) market last week by unveiling its TV Platform Adaptation Kit (TVPAK), a combination of software television technologies centered around interactive television.

The software giant has been dabbling in the consumer handheld market for the last several years with its Windows CE operating system. However, with TVPAK, Microsoft now has focused Windows CE on television and set-top box products. TVPAK will allow Microsoft to move into an area where it will have more influence on a bigger audience across the world and potentially allow its revenues to grow substantially.

The Redmond, Wash.-based company said it will target the Internet TV STB market, digital cable and digital satellite TV market as well as terrestrial and consumer STBs, including DVD boxes, digital VCRs and Web access boxes.

TVPAK is based on Windows CE version 2.12 combined with some software from its WebTV product. With TVPAK, STBs and televisions will be able to support interactive TV programs, electronic programming guides and e-commerce services. Microsoft boasts TVPAK will support interactive TV services 24 hours a day, seven days a week on numerous cable channels and soon through local programming.

OEMs can use the entire TVPAK platform or they can offer only parts of the platform depending on the need and the design of the STB.

"This is more of a complete solution for the market than simply Windows CE," said Michelle Abraham, senior analyst at Cahners In-Stat Group, a market research firm in Scottsdale, Ariz. "Microsoft has incorporated bits from its WebTV service and added tweaks to the CE operating system that will help it in the long run to make this a success."

The power of a company like Microsoft in this market could change the whole landscape of the consumer electronics market, Abraham said. The influence, marketing and money associated with Microsoft could persuade OEMs to invest money and resources into interactive television.

Microsoft also could use its power to offer substantial discounts for those OEMs that meet the deadlines for product delivery. Already, numerous semiconductor and system companies have signed up with Microsoft.

One company that OEMs will have to be in contact with if they decide to use TPAK is IGS Technologies Inc., Santa Clara, Calif., which is developing an ASIC that works with TVPAK.

"This is an important win for us," said Mike Raghavan, senior director of marketing at IGS. "To be the only vendor in the platform with Microsoft is very important. We beat out TeraLogic, Broadcom, and ATI. I am sure they are working on their own solutions but they won't come standard with the Microsoft platform."

Raghavan said IGS' chip, dubbed the CyberPro 5000, is an ASIC based on a 0.35-micron process technology. The chip features a streaming media post processor with 64-bit 2D and 3D graphics and a range of TV output options. The chip will be included on a tuner card, also developed by IGS and targeted specifically for the Microsoft TV offering.

Raghavan said the market should expect to see STBs from OEMs including the Microsoft technology in the early part of next year.

Examples of this include Philips Electronics N.V., which plans to build a line of STBs that will include the platform from Microsoft. STMicroelectronics Inc. will build high definition television (HDTV) STB development platforms with the Microsoft TV platform included, which are code named Orion-HD1. Those platforms now are being delivered to OEMs.

COPYRIGHT 1999 Cahners Publishing Company
COPYRIGHT 2000 Gale Group

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