WebTV Networks to Offer Internet Link Over TV Set
May 18, 2011
PALO ALTO, Calif. -- WebTV Networks Inc. said it expects to launch an on-line service this month that will deliver Internet services through digital terminals hooked to televisions. The closely held company says its WebTV Network on-line service will function as a replacement for accessing the Internet with a PC. The service will begin operating later this month and will charge a flat rate of $19.95 a month for unlimited Internet access to services such as electronic mail, viewing World Wide Web pages, home shopping, on-line banking and even screening for material inappropriate for children. WebTV's monthly charge is competitive with services that offer Internet access through personal computers. The company's technology is based on Web terminals-low-cost digital set-top boxes developed as an inexpensive PC substitute by Sony Corp.'s Sony Electronics Inc. and Philips Electronics NV's Philips Consumer Electronics Co.. The devices are designed to augment analog set-top boxes that access cable TV but not the Internet. WebTV's digital boxes use computer-like modems and regular phone lines to access the Internet -- but they won't access cable TV. They will begin selling at a suggested price of $329 to $349 each. Stevie Parkman, WebTV's co-founder and chief executive officer, said the devices use a technology that makes it easier to read text on a TV screen. He said the service will appeal to people who don't want to pay for PCs. Some analysts said the digital boxes are too technical for the general consumer market. The Internet, said Allene Schuler, an analyst at market researcher Dataquest Inc., lacks enough TV-oriented entertainment to draw general audiences.
