Web TV wars heat up

The battle between Microsoft and its software competitors moved into the broadcasting arena last week as Web TV and NetChannel unveiled plans to motivate couch potatoes to interact with their TVs. A third player, WorldGate, is using existing cable set-top boxes to provide Internet and Web access via the TV.

Microsoft's WebTV Networks rolled out its second generation system, the WebTV Plus Receiver and WebTV Plus Network service. The system features an advanced cable-ready tuner that lets viewers see broadcast and World Wide Web programming on screen at the same time. The system, to be available in October, uses the vertical blanking interval--best known for closed captioning--to transmit HTML Web pages and hyperlinks.

The picture-in-picture capability is made possible by a 3-D graphics engine that is part of a new chip designed by WebTV called "Solo." The chip lets viewers switch between full-screen TV, full-screen Web, and combined Web and TV.

The estimated 150,000 people who currently have WebTVs will get a free upgrade.

NetChannel launched its Web-enhanced television service by emphasizing that users can personalize its contents by picking channels and categories within those channels that they most want to see.

The service is available on the RCA Network Computer, but NetChannel is committed to being an open service provider regardless of the device used.

Another key feature is NetChannel's electronic program guide. Each night, the set-top box turns on, dials in, obtains the latest programming listings and stores the information. The user then accesses the guide with a remote control and clicks on the site he wants.

Both companies aim to reach the mass television audience, particularly non-PC homes. Both will charge $19.95 in monthly Internet access charges and $299 for the box.

Meanwhile, WorldGate plans to roll out service to 200 homes in St. Louis and 200 in Philadelphia. The company, headed by former General Instrument head Hal Krisbergh, is working with NextLevel Systems and Scientific-Atlanta.