Hewlett-Packard Co is getting really serious about the electronics that will be needed to deliver interactive services to television sets, and the company is now planning to invest in Reston, Virginia-based Eon Corp, which develops of technology for interactive television. According to the Wall Street Journal, Hewlett-Packard confirmed that it had signed memorandum of understanding with Eon for the equity investment, but terms are not being disclosed. Under the agreementm Hewlett-Packard will get a licence to manufacture set-top decoders for Eon’s wireless network, and will have the right to license Eon’s interactive services for use in its new open architecture set-top boxes for cable and telecommunications systems. Eon wants to marry its system and services to a variety of doemstic systems including modular cable converters, multimedia players and portable devices, and says it is also considering embedding two-way capability in television sets. It has also done a deal with Diablo Research Inc, which will produce a wireless accessory that connects multimedia consumer appliances to the Eon network. Despite the interest, Eon must cut its costs, and says that by using widely accepted software, contracting out production services and launching in nine markets, it will cut on-going expenses by nearly a third, enabling it to cut its staff at Reston to 163 from 250. Earlier this month, Eon announced an agreement with TV network owner ABC/Capital Cities Inc on interactive television systems and services (CI No 2,267).
