Rogers and Microsoft Collaborate on Interactive Television Services

Strategic Insights -

Rogers Communications Inc. and Microsoft Corp. have announced a series of agreements aimed at accelerating the deployment of interactive television services to millions of Canadian homes. The partnership aims to provide customers with a range of next-generation digital services that combine interactive video and audio programming with enhanced broadcast services. The collaboration will involve a phased rollout of products and services, with the first phase set to begin next year.

Key Takeaways:

  • The agreement will enable Rogers to provide Canadian television viewers with next-generation digital services, combining interactive video and audio programming with enhanced broadcast services.
  • Rogers has chosen to license Microsoft's TV client software and Microsoft TV Server software to support at least 1 million advanced set-top boxes.
  • Microsoft will make a CDN $600 million (approximately $400 million U.S.) investment in Rogers to further demonstrate its commitment to Rogers' success in developing and rolling out new digital services.
  • The partnership will provide access to a broader range of advanced Internet and television services over Rogers' broadband network, with the goal of stimulating the online community and e-commerce in Canada.
  • The services will include content provided by Rogers, Microsoft, and a variety of Canadian and other content suppliers, as well as a Rogers-branded e-mail product powered by MSN Hotmail and other services based on Microsoft properties.

Statistics:

  • 2.8 million homes passed by Rogers' broadband network
  • 89 percent of Rogers' network has two-way capability
  • 1 million advanced set-top boxes to be supported by Microsoft TV client software
  • CDN $600 million (approximately $400 million U.S.) investment by Microsoft in Rogers
  • 5.33 million three-year warrants to purchase Rogers Class B shares to be received by Microsoft

Sources:

  • "Rogers Communications Inc. and Microsoft Corp. Announce Series of Agreements," PRNewswire, July 12*, 2002
  • "Rogers Communications Inc.," _Toronto Stock Exchange_, accessed on [date]
  • "Microsoft Corp.," _NASDAQ_, accessed on [date]
  • "About Rogers Communications," Rogers Communications Inc., accessed on [date]
  • "About Microsoft," Microsoft Corp., accessed on [date]