Web to the sofa, WebTV channels the Internet into America's living room >BY Shira McCarthy, Associate Editor-News

The idea of offering access to the Internet and World Wide Web over a television set got a shot of credibility last week with Microsoft's minority investment in WebTV Networks, a Palo Alto, Calif.-based company committed to bringing the Internet to America's favorite consumer device.

"There are a number of players focusing on the Internet-to-TV market, but we thought that WebTV has done a good job so far, so we approached them about working with them," said Alan Yates, senior product manager of the consumer platforms group at Microsoft. "No one knows how successful [Internet TV] will be, but our investment should be an indication of how we feel about it."

On WebTV's part, the Microsoft investment lends the company credibility, said Chip Herman, vice president of marketing at WebTV.

Like other Internet-to-TV companies, WebTV is banking on the assumption that the average consumer wants to surf the Web without the expense and hassle of using a personal computer.

"Consumers today have a cursory understanding of the benefits available to them on the Internet and want to find out more, but there are big barriers to consumers being able to access the Internet and use it easily," Herman said.

Accessing WebTV involves a set-top box from Sony Electronics or Phillips Consumer Electronics-both available at consumer electronics stores for slightly more than $300-that incorporates a 33.6 kb/s analog telephony modem. Using a Sony universal remote control, the consumer clicks on WebTV as with any other channel; the modem automatically logs on, and the WebTV home page pops up. Web access plus e-mail costs $19.95 a month for unlimited usage.

"We have an opportunity to sell to people who are not PC-enabled in their homes," Herman said. "It comes down to how they want to have an Internet experience. There are a large number of people who want access to the information and entertainment on the Internet and would love to be able to do that in their living rooms."

Robert Rosenberg agrees with that statement, but he doesn't believe that WebTV's approach will fly in the consumer marketplace.

"The concept of Internet-over-TV will catch on eventually-but not with products like WebTV," said Rosenberg, president of Insight Research Group, Livingston, N.J. "No one is going to access the Web that way. It's ridiculous. Using a standard TV and some sort of point-and-click thing is not the way to go."

Instead, Rosenberg envisions an entirely new consumer electronic device in the living room within the next seven years-a device with a big screen, plenty of memory, and an inbound coaxial cable, twisted pair or a satellite uplink that offers Web access, some kind of video over the network, and broadcast reception. "Do I really want to call that thing just a TV?" Rosenberg asks. "It's basically the next generation consumer electronics product, and the whole nomenclature of that device has to be rethought."

Meanwhile, WebTV and other Internet-to-TV developers-such as TV On-Line, which uses the cable network's vertical blanking interval to deliver the Internet-are trying to hit an untapped segment of the Internet access market right where they live-in front of the TV.

MICROSOFT FORMS MULTIMEDIA STUDIO Microsoft has created the first multimedia production studio for the Internet as part of its Microsoft Network on-line service. Called Microsoft Multimedia Productions, or M3P, the studio will be a forum for selected independent producers to create programming for the MSN service.

AMERITECH HITS LUCKY 13 IN MICHIGAN Ameritech has received a cable TV franchise from Clinton Township, Mich., the telco's 13th in Michigan and 24th in its region. Ameritech will begin building the network later this year and plans to begin rolling out Americast-branded service by early next year.