Microsoft, STMicro chip away at IPTV

Chip vendor STMicroelectronics and Microsoft this week announced that the two companies will work together on a new chip set that will use Windows Media 9 in consumer electronics products including set-top boxes, digital video recorders and even gaming consoles. Beyond getting the Windows platform entrenched in a market where Microsoft has struggled in the past, the collaboration will provide a kick-start to the IP TV segment.

By including set-tops as one target, the two companies can push IP versions of those devices into the retail environment where Microsoft’s name carries significant weight. Previously, vendors had talked about moving traditional set-tops through retail stores, but the movement never took off.

"We think in the IP TV space it’s going to evolve as a retail model," said Ed Graczyk, director of marketing for the Microsoft TV Division. "[The chip set] will be broader than set-top boxes. It will be PVRs, DVD players, maybe even in emerging convergent devices like game consoles. Anything that could logically be connected to the TV."

STMicroelectronics will manufacture the chip sets, which will support a range of Windows Media 9 technologies including Windows Media Audio 9, Video 9 and Audio 9 Professional. The company also will become part of Micosoft’s IP TV ecosystem, which is still in the formative stages. Ultimately, both companies believe the development of Windows Media 9 on a chip set will spur significant cost reductions in set-tops.

Using STMicroelectronics’ new integrated circuit components in affordable terrestrial, satellite, cable and IP set-top boxes will enable broadcasters and network operators to deliver more high-quality content directly to the living room, thanks to the compression efficiency of the Windows Media 9 Series, thereby increasing the potential audience and improving the economics of content delivery to consumers.

"The ultimate goal is to have a set-top box that will let you do digital TV, [interactive programming guides] and video on demand where the bill of materials is in the $50 range," Graczyk said. "We think that’s in the 2007 range."