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.
This strategy has met with mixed results. WebTV missed its own deadline to hit the one million subscriber mark, but it did sign important deals such as one with provider Echostar to create set-top boxes for its satellite television service. Moreover, the company has been criticized by its own customers for failing to provide certain technologies that are popular on the Net, such as Java and the newer versions of Real Networks RealPlayer. Many have wondered if this was because of issues between parent company Microsoft and its competitors. Company executives have always insisted that those technology decisions were not mandated by Microsoft, but rather that the company was constrained by the limitations of the price and hardware requirements of the WebTV set-top box.