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Today's report from Web Editor
Susan Rush
• ITV: Disney Gets Back In The Ring
• DSL Delivers VOD
• Microsoft Settles With FTC
• Living The Digital Life
• Broadband Briefs
ITV: Disney Gets Back In The Ring Mickey
Mouse puts the gloves on again. The Walt
Disney Company turned the heat up on its attack against the proposed America
Online-Time Warner merger in a
filing with U.S. regulators claiming that the companies are trying to
exclude rivals from offering ITV services over their cable lines. AOL did
not return BroadbandWeek Direct's calls for comment before deadline.
Both AOL and TW have assured regulators that they have no
intention of blocking consumers access to competitors' interactive
programming. Although their open access arrangement with the FCC
does not include set-tops, the duo has stated that they would be open to
discussing "business arrangements" with their rivals.
Not everyone is interested in federal involvement with ITV,
especially so soon. At an interactive TV conference in New York yesterday,
Decker Anstrom, The Weather
Channel CEO, said, "Nothing will kill ITV faster than government
regulation."
The Federal Trade Commission
is set to rule on the $135 billion merger in two weeks. With Disney being so
strongly opposed to the deal, it would not be surprising if Disney continues
to step up its efforts even move to foil the deal.
Related Stories:
AOL
Extends Merger Deadline, BroadbandWeek Direct, 10/24/00
AOL Battles The Mouse, BroadbandWeek Direct, 10/4/00
DSL Delivers VOD
Consumers want to be entertained, and they want to be
entertained NOW. Video-on-demand is an emerging technology, and no one
wants to be left in the dust. Broadwing
Inc. has announced plans to test an interactive set-top box that
delivers movies and other programming over ADSL. The test is set to launch
to a small group of ZoomTown.com
customers, a Broadwing subsidiary, this Thanksgiving.
Customers will be able to do more than just watch movies on
the uniView Technologies set-top; the
box will also come with a keyboard to enable subscribers to send/receive
email and surf the Web on their television sets. If the trial is successful,
ZoomTown.com plans to make the service available to all of its 35,000
subscribers in 2001.
The VOD race is heating up. In July, Blockbuster
announced a 20-year exclusive agreement with energy-trading company Enron
Corp. to deliver VOD programming via high-speed digital subscriber
lines.
Related Story:
An Interactive
TV Reality Check, Broadband Week, 9/00
Blockbuster
Eyes VOD on DSL, Multichannel News, 7/24/00
Microsoft Settles With FTC
Without admitting or denying the charges,
Microsoft Corp. settled a complaint with the FTC regarding its WebTV
advertising campaign. The agency alleged the software giant's ad campaign
"falsely and deceptively" understated the interactive TV services'
cost by failing to disclose additional toll-call charges. Microsoft has
agreed to educate consumers through brochures and additional advertising
about the limits of the system and additional charges they might incur.
The FTC's complaint is just one item in a long list of
setbacks Microsoft has experienced with its interactive television service.
Last month, AT&T and United Pan-Europe
Communications both turned to Liberate
Technologies for its interactive software, after Microsoft failed to
deliver its technology on time.
In other Microsoft news, the company announced pricing for
its UltimateTV service. For $9.95 a month, subscribers will have the
capability to digitally record video for up to 35 hours, pause live TV, have
access to interactive TV and three hours of Internet service. For an
additional $5 a month, subscribers have the option of using their own
Internet Service Provider.
Related Stories:
For TV,
Microsoft Turns To 'Ultimate' Solution, Broadband Week, 10/00
AT&T
Tests Interactive TV, BroadbandWeek Direct, 9/21/00
Living The Digital Life
Sony has PS2, 3Com
has Audrey and Microsoft is
developing the Xbox; home networking is on the rise and these companies, as
well as many others, are moving full speed ahead toward offering consumers a
"digital lifestyle." According to new research from The
Yankee Group, digital remodeling is piquing the interests of consumers.
As many as 21 million households in the United States are interested in
digital remodeling, with 12.4 million of these households looking to
implement a home networking system within the next year.
Application and service offerings, like residential gateways,
converged communications, entertainment and ease of use, will be the
principal driving forces behind mass acceptance of home networking. The
Yankee Group's home networking study found that 33 percent of consumers want
additional phone lines as part of broadband data packages and 36 percent
want to be able to control home appliances from anywhere in the home. The
market has the potential to be big, but consumer education will be key to
widespread adoption.
Related Stories:
Introducing
Audrey, BroadbandWeek Direct, 10/17/00
Net Neighborhood Unveiled, Broadband Week, 9/00
Broadband Briefs:
- Educational loan company Sallie
Mae teams with broadband service provider Telocity
to offer its borrowers high-speed Internet access. Sallie Mae customers
will receive one month of free DSL-based Internet access, including free
installation and activation. Following the trial period, the service will be
offered for up to $49.95 a month.
- Hughes Network Systems
and America Online unveil AOL Plus service.
The service will enable PC users to access AOL at broadband speeds via
satellite. HNS also confirmed that it will launch its two-way, satellite
high-speed Internet access service, DirecPC, by the end of the year.
- TeraNex joins Akamai
Technologies' Streaming Media Provider Program. TeraNex's pixel processing
technology enables real-time encoding, management and delivery of traditional
video content over broadband lines.
- Broadband
Services Inc. wins a $40 million deal to distribute Com21
Inc.'s line of broadband access equipment throughout the United States.
- Qwest Communications
introduces a suite of Professional Class DSL services targeted at business
customers. Qwest is offering enhanced technical support, service level
agreements and guaranteed service installation timeframes and performance
levels.
- Residential broadband service provider Altrio
Communications secures $125 million in financing from Frontenac Company,
Bessemer Holdings and a few other institutional investors.
- HarmonyCom Inc.,
a provider of broadband provisioning solutions, receives $25 million in
financing from several investors, including first time contributors Draper
Fisher Jurvetson ePlanet and Genesis Partners.
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