Viva the Battle Over Digital TV Technology

Microsoft Corp.’s announcement Sunday that it will acquire WebTV Networks (see story, A1) is a fitting kickoff to this week’s National Broadcasters Assn. convention in Las Vegas, which will focus on the much-hyped convergence of the computer and the TV set.

WebTV offers a way to make traditional television sets into Web-surfing devices by adding a $300 box. And today, Microsoft will join Intel Corp. and Compaq Computer to promote their technology for a PC cum TV based on next-generation digital television, whose roll-out was given the go-ahead by the Federal Communications Commission last week.

The companies hope to establish a standard for machines that will receive and display the digital TV signals that broadcasters will begin transmitting next year, while also retaining all the interactive and Net-surfing capabilities of the PC.

“The PC is the future for broadcasting,” said Ron Whittier, senior vice president of Intel’s content group. “The Internet and broadcast will coexist and complement each other, until both become broad-band, two-way media.”

Compaq and other computer vendors plan to introduce large-screen living room PCs that will display digital TV pictures--including super-sharp high-definition pictures--in the so-called progressive-scan format that’s used by computer monitors.

However, consumer electronics companies favor sticking with traditional “interlace scan” display technologies and mostly plan products that will be cheaper and less functional than those offered by computer vendors.

Both camps are lobbying broadcasters to favor their formats, but consumers will decide the winner when they start buying digital TV gear next year.

It isn’t yet clear exactly how Microsoft sees the WebTV technology fitting into all this. Microsoft said WebTV’s products would be the “cornerstone” of its efforts to integrate the Internet and digital television. But the WebTV boxes are made by consumer electronics vendors Philips and Sony, and WebTV is in many respects a competitor to the traditional PC.

Lots of other exotic technologies aimed at the PC-TV convergence will be on display in Las Vegas. IBM will unveil a package of digital broadcasting technologies that will enable consumer to receive some advanced digital television services even before broadcasters have completed the transition to digital TV.

News Corp.’s News Digital Systems will announce its plans for an information delivery service utilizing existing satellite television systems. The system, which will begin testing later this year, will be able to deliver newspapers, magazines, recorded music and other data to households that have a satellite dish and a PC equipped with a special card.