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Nerd War! - AOL Enter WebTV Market

Thursday 13 May 1999
By eBroadcast Staff and agencies.

AOL, America's top Internet provider is ready to enter the converging worlds of computers and television, meaning more losers than ever will have email access

Here's a treat for all you who actually took the time to read an educational story.
We know what you're thinking out there. "Another boring news story loaded with statistics and useless information," right? Wrong! After reading this story you will feel as though you have just read an interesting piece written about a monumental moment in technological history.

At least, we hope so.

On Tuesday, America Online announced it has partnered with half a dozen companies to develop a dual-purpose converter box to compete with Microsoft's WebTV. The box will transform television sets into Internet receivers to deliver interactive online services that are specific to AOL's brand.

What does this all mean to you? Well, frankly, it probably means a lot more to those people who don't want to pony up thousands of dollars for a computer than it does for those of us who are willing to blow hard earned cash on endless upgrades. AOL's new services will allow folks to view specific AOL interactive services on their televisions, such as e-mail buddy lists, online shopping, and various special TV navigation features. Consumers will be able to access these services through standard phone line or satellite TV links such as DirecTV.

Initially, these services will be offered in the form of a converter box, but eventually AOL hopes to convince electronics manufacturers to build the necessary technology directly into new television sets.

However, AOL does not want to discourage consumers from buying a PC. "This is not a replacement for the personal computer," said Barry Schuler, president of AOL's Interactive Services Group, and a guy who probably wears a pocket protector. "We are looking at other places where people will extend their online experience in the home," Schuler continued.

In other words, they want to make us so dependent on AOL services that we can't function without it. Sound familiar? (If not, please see William H. Gates, Chairman and CEO of Microsoft Corp. - net worth $58.4 billion.)

Although AOL dished out some good news for the simple folk, there was no good news for traditional computer-based AOL subscribers who long for high-speed Internet services such as those provided by AtHome Corp., a cable TV-based Web service capable of delivering broadcast quality audio and video. AOL has been searching for a cable partner and is courting AT&T (now the U.S.'s largest cable provider), but has yet to reach an agreement with any cable player.

Unfortunately for AOL (like they need anyone to feel sorry for them) AOL TV will not be available until 2000, missing this year's Christmas' buying season which looks like it could be a record retail season (given the current U.S. economy).

All kidding aside, this new AOL technology means, if nothing else, that more people will have access to the web - without giving Bill Gates and his WebTV any more money. And that's a good thing.

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