MSN TV

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MSN TV (formerly WebTV) is the name of both a thin client which uses a television for display (rather than a monitor), and the online service that supports it.

The product and service were developed by WebTV Networks, Inc., a company which was purchased by Microsoft Corporation and absorbed into MSN (the Microsoft Network). While most thin clients developed in the mid-1990s were positioned as disk less workstations for corporate intranets, WebTV was positioned as a consumer device for web access.

Contents 1 The concept 2 Early history 3 The launch 4 Microsoft takes notice 5 The WebTV client 6 MSN rebranding 7 Broadband MSN TV 8 WebTV/MSN TV client hardware 9 See also 10 External links

[edit] The concept

As founder Steve Perlman was watching television one evening, he saw a commercial that ended by displaying the website address for the company; he often recalls this as a Campbell's Soup advertisement^{[citation needed]}. He was wondering exactly why Campbell's Soup would provide a web address for a television audience that (most likely) was neither interested in eating soup at the moment nor likely to be driven to the Internet at that precise moment.

It occurred to Perlman that if the television audience were enabled by a device to augment television viewing with receiving information or commercial offers through the television, then perhaps the web address could act as a signal and the television cable could be the conduit. Thus, the basic idea for WebTV was hatched: a combination of the Internet with television.

[edit] Early history

Founded by Perlman in 1995, WebTV Networks began life as Artemis Research. Perlman brought along co-founders Bruce Leak and Phil Goldman shortly after conceiving the basic concept.

Artemis Research hired many engineers and a few business development types early on, having about 30 employees by October 1995. The founders and their early employees were creative and witty. Before incorporation, the company referred to itself as Artemis Research [1] to disguise the nature of their business; they explained on their original website that they were doing research in sleep deprivation involving rabbits. The sleep deprived engineers found this funny as Phil Goldman's pet house rabbit Bowser (inspiration for the General Magic logo) was often found roaming the building as late into the night as they were. However, many animal activists were not in on the joke and took offense to the website.

When the U.S. State Department limited the ability to export WebTV on the basis that the encryption required to visit secure websites was a non-exportable "munition" (despite the fact that the technology had originated outside the U.S. in the first place), they registered the munitions.com website, and set up a website offering implements of destruction. Bowser's name was lifted for the browser itself.

[edit] The launch

WebTV Networks, Inc was incorporated on June 30, 1995. Primary design criteria were ease of use and low cost.

WebTV Networks conserved their financial and managerial resources by providing licensed consumer electronics manufacturers with a reference design, allowing them to manufacture and market the client. Their profits were to come from operating the online service. They paid a bounty to manufacturers for each new subscriber, allowing the manufacturers to sell the clients at a lower price.

By the spring of 1996, WebTV Networks employed approximately 70 people, many of whom were finishing their senior year at nearby Stanford University, or were former employees of either Apple Computer or General Magic. They were desperate to obtain business deals with either Sony or Philips in order to have a product on the store shelves for Christmas 1996. However, it wasn't until they told Sony that there was a deal with Philips that Sony came back to the discussion and asked to be part of the platform. As a result, the company offered the complete package (service and box) on September 18, 1996 to the American market.

That first holiday selling season, the company garnered approximately 12,000 subscribers. That number grew to 35,000 by Easter, and more than 150,000 by autumn 1997. AOL claimed that a huge percentage of its traffic was suddenly coming from WebTV customers. At that rate, it was the second most successful launch of a new consumer electronics product category (behind digital satellite television).

The initial price for the box was about US$325, with the wireless keyboard for an extra US$100. There was absolutely no difference between the Sony and the Philips boxes except for the housing and packaging. In fact, WebTV arranged to have the boxes manufactured for both companies through a local electronics contractor.

The monthly service fee was about US$20 for unlimited on-line usage and up to six e-mail addresses. The box included a 33.6 kbit/s modem which was used to connect to the WebTV Service, no hard drive, and only 8 MB of RAM. The MIDI musical instrument library was supplied by Beatnik, a company founded by New Wave music icon Thomas Dolby and fit within 128 KB.

[edit] Microsoft takes notice

In September 1996, Perlman stood on a chair at a company lunch celebrating the launch of the backend service software. In his typical energetic style, he promised the 120 employees that WebTV would be the biggest success ever, and that they would never have to fear that Microsoft would buy the company and ruin it, because he Leak and Goldman had agreed that they would never sell the company to Microsoft.

In April 1997, at another company meeting, Perlman announced to a shocked room of 250 employees that the three founders and the investors had agreed to sell the company to Microsoft. Bill Gates told an audience at NAB in Las Vegas the same news and received the same dumbfounded response. Of the three, Bruce Leak was given credit for having worked the deal.

According to SEC filings, by that time, Perlman had 7 million shares of the company while his two co-founders had 4 million shares each. For some reason, this was redistributed in time for the Microsoft deal so that they each had 5 million shares.

Microsoft offered about US$12 per share for the privately held company. In order to convince the employees (especially the engineering team, of which the Microsoft deal required 80% to remain) to sign up for the new owner, the founders realized that they needed to sweeten the deal, and thus gave up some of their stock to raise the effective price for employee shares to about US$18. Even still, many engineers privately fumed, publicly protested, stalled on projects and discussed mutiny. For many, this marked a turning point in their ability to trust the three founders.

The deal was challenged by Sun Microsystems and others. In August 1997, the Department of Justice cleared the acquisition and WebTV Networks became a wholly-owned subsidiary of Microsoft. There were about 22 new millionaires created at that moment, though most would lose that status as soon as they paid their taxes.

[edit] The WebTV client

Since the device was a dedicated web browser appliance, the cost of licensing an operating system could be avoided. The box featured such cutting-edge technology as a 64-bit RISC CPU chip, and a smart card reader, neither of which ever caught on for Internet clients. The web browser was compatible with both Netscape Navigator and Microsoft Internet Explorer and the box featured 2 MB of RAM, as much as most PCs of the time. At a time when 28.8 kbit/s modems were common, the WebTV had a 33.6 kbit/s modem, and used a caching firewall for acceleration, which was a feature that most dialup ISPs didn't offer even as an extra-cost option until years later. As a thin client, there was no need for a hard disk, but by putting the browser in non-volatile memory, upgrades could be downloaded from a WebTV server.

The WebTV units were innovative in another way: they used a 64-bit RISC chip, instead of a 32-bit version of a 30-year-old CISC chip, as was commonly used in computers. Since all software was downloaded from WebTV servers anyway, there was no need to support legacy applications. This decision eventually caused problems, as users demanded support for proprietary file formats like that of RealAudio. Each time Real Networks released a new version - almost a yearly event, as Real Networks sought to sell new licenses to existing licensees - WNI had to negotiate for source code, and then port it to the WebTV architecture. The file format would become available to WebTV users about the same time it became obsolete.

A second model, the "Plus", was introduced a year later. This model featured a tuner to allow watching television in a PIP (Picture-In-Picture) window while waiting for pages to arrive, allowed one to capture video stills from video camera, VCR or broadcast television as a JPEG, and included a video tuner that allowed one to schedule a VCR in a TiVOesque manner. The Plus also included a 56k modem. In order to accommodate large nightly downloads of television schedules, a hard drive was included in the original Plus; as chip prices fell faster than hard drive prices, later versions of the Plus used an M-systems DiskOnChip flashrom chip instead. It also supported ATVEF, a technology that allowed users to download special script-laden pages to interact with television shows.

WebTV produced reference designs of models incorporating a disk-based personal video recorder and a satellite tuner for EchoStar's Dish Network and for Hughes' DirecTV. Disagreements between Microsoft and the satellite televisions companies led to a lack of support, and the models failed.

As an ease-of-use design consideration, WebTV early decided to reformat pages rather than have users doing sideways scrolling. As garden-variety PCs evolved from VGA resolution of 640x480 to SVGA resolution of 800x600, reformatting to fit the 560-pixel width of a television screen became less satisfactory. The WebTV browser also translated HTML frames as tables in order to avoid the need for a mouse. To address these problems, the engineers at WNI developed the MSN Companion, which was another easy-to-use thin client which used an SVGA monitor and mouse. Both Compaq and e-Machines marketed the Companion, Compaq producing it in multiple models. However, being substantially more expensive than WebTV (which at this point was typically $50 after rebate) and lacking many features that PC users and WebTV users found standard, the Companion never found a customer base.

[edit] MSN rebranding

In 2001, WebTV Networks, Inc. sold their subscriber base to Microsoft, and the corporation was dissolved, although the WebTV engineers continued to work for Microsoft, many of them working on Microsoft's Xbox video game system or Microsoft IP-TV technology, offering television programming over the internet. Microsoft's MSN unit took over WebTV's subscribers, and contracts with Philips and Sony were terminated, with RCA being the sole manufacturer of units. Heavy promotion of WebTV ended, and the high churn rate and support costs associated with new subscribers dropped, allowing the newly rebranded MSN TV to achieve profitability, despite a lower subscriber census. At its peak, there were more than 1 million subscribers.

In recent years, the number of consumers using dialup access has dropped and as the Classic and Plus clients were restricted to dialup access, their subscriber count began to drop. Because the WebTV client was subsidized hardware, the company had always required individual subscriptions for each box, but with the subsidies ended, MSN started offering free use of MSN TV boxes to their computer users who subscribed to MSN, as an incentive to not stray to discount dialup ISPs.

[edit] Broadband MSN TV

In late 2004, Microsoft introduced MSN TV2. Like the MSN Companion, the "Deuce" is capable of broadband access, and allows the use of a mouse, but it uses the television as an output device, eliminating the need for a computer desk in crowded homes.

For inexpensive devices, the cost of licensing the operating system is substantial. For Microsoft, however, it's a sunk cost, and when Microsoft released the MSNTV2 model, they adopted standard PC architecture and used Windows CE software with few changes. This allows a standard PC to be used with relatively few changes, allowing MS NTV2 to more easily and inexpensively keep current. The new box has Adobe Reader, Windows Media Player, and can access Windows computers on a home network to function as a media player. MSNTV2 uses a different online service from MSNTV, but like WebTV did, requires a subscription. For those with broadband, the fee is US$99 yearly. Microsoft appears to be devoting substantial resources to making MSN TV2 successful.

In February 2006, a hardware/Linux hacker known as "Niacin" managed to analyze the proprietary BIOS and published a guide describing how to install the Linux operating system on the MSN TV2 player. Since then, the price of used MSN TV2 devices in auction sites has skyrocketed.

[edit] WebTV/MSN TV client hardware

Brand	Model	Type	Modem	RAM	ROM	Storage	CPU speed	CPU chip
Sony	INT-W100	Classic	V.34	2 MB	2 MB	2 MB	112 MHz	R4640
Philips	MAT-960	Classic	V.34	2 MB	2 MB	2 MB	112 MHz	R4640
Sony	INT-W150	New Classic	V.90	8 MB	2 MB	2 MB	150 MHz	R5230
Philips	MAT-965	New Classic	V.90	8 MB	2 MB	2 MB	150 MHz	R5230
RCA	RW-2100	New Classic	V.90	8 MB	2 MB	2 MB	150 MHz	R5230
RCA	RM-2100	New Classic	V.90	8 MB	2 MB	2 MB	150 MHz	R5230
Sony	INT-W200	Plus	V.90	8 MB	2 MB	1.1 GB	150 MHz	R4640
Philips	MAT-972	Plus	V.90	8 MB	2 MB	1.1 GB	150 MHz	R4640
Samsung	SIS-100	Plus	V.90	8 MB	2 MB	1.1 GB	150 MHz	R4640
Mitsubishi	RW-2000	Plus	V.90	8 MB	2 MB	1.1 GB	150 MHz	R4640
Mitsubishi	RW-2001	Plus	V.90	8 MB	2 MB	1.1 GB	150 MHz	R4640
RCA	RW-2110	Plus	V.90	16 MB	8 MB	2 MB	167 MHz	R5230
Sony	INT-W250	New Plus	V.90	16 MB	8 MB	2 MB	167 MHz	R5230
Philips	INT-976	New Plus	V.90	16 MB	8 MB	2 MB	167 MHz	R5230
La-Z-Boy	Fabric	New Plus	V.90	16 MB	8 MB	2 MB	167 MHz	R5230
La-Z-Boy	Leather	New Plus	V.90	16 MB	8 MB	2 MB	167 MHz	R5230
Echostar	Dishplayer 7100	DISH tuner	V.90	16 MB	4 MB	8.6 GB	167 MHz	R5230
Echostar	Dishplayer 7200	DISH tuner	V.90	16 MB	4 MB	17.6 GB	167 MHz	R5230
RCA	UltimateTV	DirecTV tuner	V.90	16 MB	4 MB	40 GB	167 MHz	R5230
RCA	RM-4100	MSNTV2	V.90	128 MB	none	64 MB	733 MHz	Celeron

[edit] See also

• GYM

[edit] External links

• One of the original WebTV engineers' websites
• MSN TV Website
• MSN Video web site
• Software architecture of non-WebTV internet appliances
• HOWTO install Linux on MSN TV2 device
• Download the MSN TV Viewer
• Download the WebTV Viewer
• Create your own WebTV
• Experiencelapland.tv Internet television project webpage