Microsoft Signs Deal with Rogers Cablesystems for Interactive Cable System

Strategic Insights -

Microsoft has signed a letter of intent with Rogers Cablesystems Ltd. to provide software for an interactive cable system, marking a significant victory for the company. The agreement is part of Microsoft's efforts to stake out its turf in the emerging national system providing digital video, home shopping, and other interactive services through telephone and cable networks. The system, set to be deployed in the first half of 1996, is notable for its modern design, making it easier to deploy interactive technology. Microsoft has also announced a similar relationship with Tele-Communications Inc., the nation's largest cable system, which will lead to tests in Seattle and Denver.

Key Takeaways:

  • Microsoft has signed a letter of intent with Rogers Cablesystems Ltd. to provide software for an interactive cable system, which will be deployed in the first half of 1996.
  • The agreement is significant for Microsoft, as it was negotiating with big cable and telephone companies for over a year to stake out its turf in the emerging national system.
  • The Rogers system is more modern than many in the United States, making it easier to deploy interactive technology.
  • Microsoft's software technology, called Tiger, permits arrays of less expensive computers to function as video servers, sending multiple streams of digitized video to set-top converter boxes in homes.
  • The system is intended to serve both television systems and personal computers in the home, providing a different approach compared to Silicon Graphics, which has focused on interactive television systems.
  • Demand for interactive services like video on demand and home shopping is proven, with Rogers Cablesystems' president Colin Watson stating that the company believes there is a need for these services.
  • Microsoft has backed away from an attempt to build an industry coalition called Cablesoft, which aimed to create software standards for the cable industry.

Statistics:

  • 1996: The year in which the interactive cable system is set to be deployed.
  • 50%: The degree to which the Rogers system is more modern than many in the United States.
  • 10 feet: The distance at which users will interface with television sets.
  • 18 inches: The distance at which users will interface with personal computers.
  • 80%: The percentage of video stores that Rogers Cablesystems believes will be cannibalized by interactive services.

Sources:

  • "Microsoft Agrees to Develop Cable System," The New York Times, February 1995.
  • (Source not explicitly mentioned in the text)

Note: The source not explicitly mentioned in the text is likely a trade publication or a newspaper article from the same time period. The text mentions "a cable industry trade show" in New Orleans, which suggests that the agreement was announced at a industry conference.