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Cable television broadcasting industry

Microsoft's Strategic Move in Interactive Cable Market

Strategic Insights

— 2 min read

Microsoft Corp. has signed a letter of intent with Rogers Cablesystems Ltd., Canada's largest cable TV company, to provide software for an interactive cable system to be deployed in the first half of 1996. This deal is a significant breakthrough for Microsoft in the emerging market for digital video, home shopping, and other interactive services through telephone and cable systems. The Rogers system is considered a modern and technically clean testbed, with the flexibility to accommodate third-party developers through published interface standards.

The Rogers deal coincides with a similar relationship Microsoft has announced with Telecommunications Inc. of Denver, the largest US cable TV operator. This collaboration will lead to tests in Seattle and Denver later this year, with Rogers participating in the Seattle-Denver test and cloning the system for use in Canada. Underlying these Microsoft deals is the company's new PC media server software code-named "Tiger," introduced two weeks ago in Seattle, which can provide media-on-demand for personal, corporate, or citywide services.

Key Takeaways:

  • Microsoft has signed a letter of intent with Rogers Cablesystems Ltd. to provide software for an interactive cable system to be deployed in the first half of 1996.
  • The Rogers system is a modern, "technically clean" testbed, with the flexibility to accommodate third-party developers through published interface standards.
  • The deal is not exclusive, and Microsoft has also announced a similar relationship with Telecommunications Inc. of Denver, the largest US cable TV operator.
  • Microsoft's PC media server software code-named "Tiger" was introduced in Seattle two weeks ago and can provide media-on-demand for personal, corporate, or citywide services.
  • Tiger is based on the Windows NT advanced server operating system and can run on machines built around Intel's Pentium microprocessor.
  • The demonstration system used 16 Pentium processor-based nodes capable of delivering 3,000 simultaneous video streams with full VCR control.
  • Tiger can serve both television systems and PCs in the home, unlike Silicon Graphics' focus on interactive television only.

Statistics:

  • 1996: The first half of the year marks the planned deployment of the interactive cable system.
  • 16 Pentium processor-based nodes: The number of nodes used in the demonstration system capable of delivering 3,000 simultaneous video streams.
  • 3,000: The number of simultaneous video streams delivered by the demonstration system.
  • 32: The number of hard disks used in the demonstration system, each with a capacity of 2 gigabytes.
  • 2 GB: The capacity of each hard disk in the demonstration system, equivalent to storing more than 50 feature-length movies.
  • 1996 (first half): The planned deployment of the interactive cable system in Canada.

Sources:

  • "Microsoft signs deal with Rogers Cablesystems" (date not specified)
  • "Microsoft introduces PC media server software 'Tiger'" (date not specified)
  • "Silicon Graphics working on trial with Time Warner Inc." (date not specified)
  • Intel Corp. and Compaq Computer Corp. representatives' participation in the Seattle demonstration.

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