| NEWS FLASH: Microsoft launches major push into IPTV |
Oct. 09, 2003
 Updated Oct. 13, 2003 -- Microsoft's TV Division unveiled plans last week for the development of a new end-to-end Internet Protocol television (IPTV) "delivery solution" intended to help cable and telecommunications operators offer improved and next-generation TV services over existing broadband networks. The IPTV set-top boxes (STBs) and IPTVs will be based on Windows CE .NET and XP Embedded OSes, and will achieve substantial bandwidth savings by using Windows Media 9 A/V technology, which, Microsoft says, "has approximately three times the efficiency of MPEG-2 and twice that of MPEG-4."
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According to Microsoft, the IPTV solution will provide "next-generation" features such as instant channel changing, multimedia programming guides with integrated video, and multiple picture-in-picture capability on standard TV sets. High-definition television, next-generation digital video recording (DVR), and video on demand (VOD) functionality also will be supported. Additionally, Microsoft said the IPTV system will include robust digital rights management (DRM) technology to provide the high levels of security for video assets and TV services that operators and content providers are demanding.
Rather than being an announcement of commercial availability of IPTV products and services, today's Microsoft announcement is of the company's intention to create a complete end-to-end solution spanning a range from video management and delivery to consumer TV experiences.
Microsoft's IPTV STB demonstration prototype, future concept
A prototype of the newly announced Microsoft IPTV solution is being demonstrated publicly for the first time this week, in Microsoft's booth at ITU Telecom World 2003 in Geneva, Switzerland.
MSTV's prototype IPTV STB
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Microsoft TV's new IPTV STB solution can be expected to target high-end STBs with processing performance of at least 100MHz along with 16-32MB (or more) of memory, and will includes a full software stack including the embedded operating system (CE .NET or XP Embedded), a TV graphical user interface (GUI) layer, and other specialized middleware for delivering content and services to an interactive set-top box TV environment.
 The picture at the right is of a concept model created by Microsoft for a small IPTV STB roughly the size of a typical consumer Internet gateway/router (click image to enlarge).
According to Microsoft TV director of marketing, Ed Graczyk, the IPTV STB concept design (illustrated in the above concept picture) assumes the availability of a low-cost single-chip IPTV STB processor, along with hardware decoding of Windows Media 9. The goal is to begin with a BOM-cost of around $150, and reduce it to less than $50 by 2007.
Microsoft does not plan to manufacture the hardware, but is developing concept models to help drive the industry forward, Graczyk said.
Microsoft's range of digital TV offerings
Earlier this year, Microsoft introduced a digital TV platform for low-end set-top boxes, called "Microsoft TV Foundation Edition." The low-end platform enables network operators to offer enhanced services such as video-on-demand (VOD), games, news, weather, and sports to consumer STBs and TV devices, and includes an "innovative" interactive program guide, but is not an IP-based solution and is intended for current-technology thin client STBs rather than more advanced IP-based STBs.
In contrast with the new IPTV solution, which will make extensive use of the CE .NET and XP Embedded OSes and Windows Media 9 technology, Microsoft TV Foundation Edition is a middleware framework which runs on top of a low-end STB's proprietary embedded operating system.
Microsoft TV's offerings now include four levels of digital TV solution, explained Graczyk: - Microsoft TV IPG -- adds interactive program guide functions to low-end STBs which are used for 1-way broadcast of MPEG-encoded video.
- Microsoft TV Foundation Edition -- adds a range of interactive functions to low-end STBs used for 1-way broadcast of MPEG-encoded video, including an interactive program guide, video-on-demand (VOD), games, news, weather, and sports.
- Microsoft TV Advanced -- a hybrid solution based on the combination of conventional, 1-way, MPEG-encoded video broadcast, along with 2-way IP-based interactive functions such as program guide access, VOD, web surfing, email, etc.
- Microsoft "IPTV" (not officially named yet) -- a 2-way, all-IP based technology which implements video broadcast based on Windows Media 9 technology, along with Internet-based interactive functions such as program guide access, web surfing, email, etc., plus DVR capabilities.
Third-party efforts
Microsoft said its IPTV offering will be a complete end-to-end solution spanning a range from video management and delivery to consumer TV experiences, making it easier for operators to get started and quickly expand their IPTV businesses. Additionally, the company said will work to lower the costs of video assets and their delivery to consumers.
 Microsoft also said it plans to work closely with many third-party companies on IPTV development efforts, including: "Harmonic Inc. and Tandberg Television, leaders in real-time video encoding solutions for broadcast and IPTV telecommunications; Juniper Networks Inc., a leader in IP-based infrastructure platforms; Intel Corp., a leader in silicon for computing, communications and consumer electronics devices for the home; Pace Micro Technology, a leader in broadband digital TV in the home; and Thomson, a worldwide leader in video technologies, products and services."
Analyst quotes
"Microsoft's vision for IPTV has the potential not only to improve the TV viewing experience but also to continue to change how video and TV services are delivered to consumers today," commented Michelle Abraham of In-Stat/MDR. "Microsoft is well positioned to bring the technology, partnerships and resources required to help the pay-TV industry take a major step forward toward the introduction of next-generation TV services over broadband IP networks."
"With IP networks reaching scale and maturity, the next generation of TV services is within our reach," added Moshe Lichtman, corporate vice president of the Microsoft TV Division. "Last summer we launched our Foundation product targeting current-generation networks. Our IPTV solution is a natural next step and will be designed to bring together the best of Microsoft and industry innovations to open up new revenue opportunities for existing pay-TV network operators as well as other broadband operators looking to expand their markets into video delivery."
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