UltimateTV May Be "Contributed" To Sky Global Networks In DirecTV Deal: News Corp's Rupert Murdoch is said to be preparing
new bid to acquire DirecTV where Microsoft would also invest $3 billion and contribute Microsoft's UltimateTV interactive
television operation to Sky Global Networks (20APR01) (LATimes)(alt.link)(related.link)
The Los Angeles Times reports, "News Corp. is close to finalizing an agreement under which Microsoft Corp. will become
its satellite partner. Microsoft has agreed to invest about $3 billion and contribute its interactive television operation,
Ultimate TV, to News Corp.'s satellite television company, Sky Global Networks, according to several sources." This
is all apparently contingent on the DirecTV deal going through if it ever does. The Los Angeles Times also reports Microsoft
would get "preferred supplier" status in such a situation. The Los Angeles Times goes on to further report that a
contribution of the UltimateTV operation to Sky Global Networks "would allow Microsoft to exit gracefully from the interactive
television business after spinning its wheels for a decade without much success."
Although the Los Angeles Times does not say this, Microsoft would certainly remain in the interactive TV
market by continuing to provide software since Microsoft may only be getting out of the service part of the interactive TV
business under this scenario. To get things going, at least in the US, someone had to run an interactive television service to find
out how to operate one, to prove it technically does work, and in the beginning the service may have to be operated by the
technology provider. So, I should probably get ready to slap a Sky logo onto my WebTV box. -ruel
Commerical Viability Of VOD Could Be A Long Way Off: Blockbuster to instead launch co-branded pay-per-view service with
DirecTV in June 2001 (19APR01) (Videobusiness)
With regard to the split up of the Blockbuster-Enron Video-On-Demand via DSL venture, Video Business quotes Blockbuster
chairman and CEO John Antioco as stating, "What we learned from that experience is that the commercial viability of
video-on-demand is still a long way off. There are significant technical and financial hurdles that have to be overcome, including
the huge economic issues the studios are wrestling with.... If VOD cannot be incremental to the existing business, it's not a good
economic answer for the content providers" Video Business cites Antioco as indicating "Blockbuster continues to seek digital
rights from the studios to make sure [that Blockbuster] can take advantage of VOD if and when it becomes viable."
Set-Tops For "The Station" In Canada: Greater Sudbury Telecommunications Inc. to use Urbana set-top boxes and LocalNet
portal software in Phase I of $11 million local community broadband project in Sudbury, Ontario in Canada (19APR01) (Urbana)(alt.link)
The news announcement states, "The Station Project will supply the Greater Sudbury Area with high-speed LocalNet services
to homes and businesses in the community. Phase I will include Urbana's LocalNet portal implementation and high-speed
connectivity to 2,000 residents and provide Set Top Boxes to approximately 1,000 residents that currently lack Internet access."
The news announcement indicates Greater Sudbury Telecommunications Inc. is providing fiber and management functions,
Alcatel SA is providing switchgear, IBM is providing project and supplier management, Sage Systems is
providing home automation system controls and meter reading data collection technology, and Callisto is providing
video-on-demand technology. The news announcement indicates that the eventual goal is to hook up all 150,000 residents
of the Greater Sudbury region to "The Station."