April 14, 1997
Television: The Microsoft Way
By Bob O'Donnell
Call me naive, but I usually don't worry about having to bash Microsoft for fear that
it is taking over the world. Generally, I think the company makes excellent products and
has earned its vaunted place in the computer world. In fact, until fairly recently I was a
Macintosh bigot, but I now find that I prefer using Windows 95-based PCs for most of my
work and play.
But, even I had to stop and think a little bit about Microsoft's acquisition of WebTV
last week. It's not that WebTV is such an amazing product or technology; I really don't
think it is. (Nor apparently, does the general market, considering reports I've read which
say the company has only sold about 70,000 units to date.) But what I did find a bit
disconcerting is Microsoft's blatant goal of wanting to own the basic underpinnings of my
television as well as my PC.
Microsoft's strategy for buying WebTV is to start establishing Windows CE as the
primary OS for consumer appliances, such as TVs, and to further extend the reach and
influence of Internet Explorer. By owning WebTV, which is arguably the leader in the niche
Internet TV market, and porting the WebTV products and technologies to a Microsoft base of
software, the company obviously hopes to build a platform for future entertainment devices
that it can then dominate. Frankly, it's a great business strategy.
Along the way, Microsoft also is hoping to influence the digital television
transmission standards (which the FCC, unbelievably, chose not to standardize last fall,
but instead left open to be determined "by the market"). Microsoft, along with
Intel, Compaq, and other members of the computer industry, want people to use an
non-interlaced video signal, as current computer monitors do. The consumer electronics and
broadcast industry, on the other hand, wants to stick with the interlaced signal used in
current televisions, but at a much higher resolution. At issue is where to store
additional data channels embedded into the video signal that could include things like
sports statistics during a baseball game.
Microsoft's overall goal is to become the dominant force in the new world of digital
television, much as it is in the world of personal computers. I don't think it wants to be
the dominant creator of content; although, as in the world of PCs, it will certainly do
its share. Rather, Microsoft seems to be going for the infrastructure, the delivery
mechanism through which content is received.
In some ways, the idea of Microsoft having a powerful influence over digital television
standards is appealing, if for no other reason than it should help make the convergence
between consumer electronics, PCs, and the Internet smoother. Without someone setting
standards and calling the shots, things could get very messy when it comes time to make
all these devices work together.
The reality is, though, that the company could reach a point where it's simply too
powerful an influence on our economy as well as our society. Owning the means through
which most of our entertainment, business, and personal work is created and consumed is a
staggering responsibility.
I don't think the company will reach that point, however, because the broadcast and
television industry is powerful enough to just say no to Microsoft and initial reports
from last week's National Association of Broadcasters Convention suggest that's exactly
what happened. Broadcasters, who are used to making important decisions for themselves,
were apparently put off by the hubris of the computer industry executives and their plans.
The result is bound to be a battle of egos played out on a grand scale.
Whatever becomes of the digital television standards, Microsoft's purchase of WebTV and
its plans to integrate video into their OSes will undoubtedly have a large impact on us
all, both at work and at play. Let's just hope things don't get too out of hand.
©
Copyright 1997, by InfoWorld Publishing Corp., a
subsidiary of IDG Communications, Inc. Reprinted from InfoWorld,
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