UK's Largest Cable Company Snubs Microsoft, Chooses Alternative Software for Digital TV Service

Strategic Insights -

The UK's largest cable company, Cable & Wireless Communications, has announced that it will be using software backed by Netscape and Oracle to power its new digital television service, a decision that comes as a snub to Microsoft's attempts to corner the market for set-top box software. The new service, which will launch this autumn, will provide subscribers with access to 200 channels, as well as the ability to surf the World Wide Web, send and receive e-mail, and engage in online shopping and gaming.

Key Takeaways:

  • Cable & Wireless Communications, with 760,000 cable television customers in the UK, will be using software provided by Network Computer Inc, a joint venture between Netscape and Oracle, for its new digital television service.
  • The service will offer subscribers access to 200 channels, as well as interactive services such as games, on-demand movies, and online shopping.
  • The UK market is seen as crucial for digital television adoption, with the country leading the world in the introduction of digital television.
  • Microsoft's WebTV is a competitor to the NCI software, and the company had previously attempted to supply software to CWC for its digital service.
  • According to Mr. Wallace, CWC's chief executive, the company had extensive talks with Microsoft but they were unable to provide a product for the 1998 launch.
  • The DTV Navigator software will provide subscribers with an electronic programming guide, as well as access to interactive services and the World Wide Web.
  • CWC is expected to launch the service this autumn, after conducting trials throughout the summer, and will charge customers less than £10 a month for internet access.

Statistics:

  • 760,000: The number of cable television customers in the UK that Cable & Wireless Communications has.
  • 200: The number of channels that will be provided to subscribers through the digital television service.
  • £200: The expected cost of the set-top box required to receive the digital satellite service from BSkyB and BDB.
  • £10: The expected cost per month for internet access through CWC's service.
  • 20 times: The speed of the connection that CWC's service will offer, compared to the most powerful modem available.
  • 1998: The year in which CWC plans to launch its digital television service.
  • 30: The number of content providers that British Interactive Broadcasting, a joint venture between BSkyB and others, is in talks with.

Sources:

  • "Cable company snubs Microsoft for Netscape", The Guardian (August 3, 1997)
  • "Digital TV service aims to leapfrog broadband", The Times (June 10, 1997)
  • "Microsoft's WebTV faces new challenge from Cable & Wireless", The Independent (August 4, 1997)