Acquired by Microsoft in 1997, WebTV was the first company to offer Net access through the television. Despite the growing industry trend of accessing the Web through devices and appliances rather than the desktop PC, WebTV has struggled to turn initial buzz into steady growth. WebTV's latest move may not be enough to stave off impending competition from 800-pound gorilla America Online. The online service behemoth and Microsoft archrival is set to launch AOL TV this summer.
Analysts have heady expectations for the newcomer to TV-based Web access.
With numbers like that, AOL TV could easily eclipse Microsoft and its one million WebTV subscribers, a scenario which likely contributed to the timing of this month's promotion. When appealing to first-time users, the AOL brand name may be more appealing than Microsoft's reputation for bugs and complicated software, analysts say. Microsoft is not exactly known for user friendliness. WebTV executives declined to comment on the motives behind the promotion. Promotions are a normal part of business.