Microsoft is preparing to launch its iTV software into the Dutch market.
As soon as UPC, the Amsterdam-based broadband communications provider, is ready, Microsoft’s Advanced TV software will be released into a second European market. Just short of two months ago the US firm’s first commercial roll-out in Europe interactive TV was announced, with the Portuguese launch of TV Cabo’s Microsoft-equipped set-top-box.
Portugal represents one of Europe’s smallest digital TV markets; the Netherlands market, however, is of a far more significant stature, giving existing software providers ample warning of Microsoft’s intentions. More importantly UPC is Europe’s largest cable operator in terms of subscribers. However, UPC opted for Liberate in itsr Austrian roll-out earlier in the year as Microsoft could not deliver on time. The pressure is really on for Microsoft to deliver here, particularly following AT&T’s decision last week to dilute its relationship with Redmond and also sign up with Liberate.
It is crucial that Microsoft’s interactive TV venture is successful. The company has invested heavily in the digital and interactive TV markets, pumping more than $15 billion into stakes in cable television operations across the globe to encourage the roll-out of broadband Internet and the deployment of its interactive TV software. However, the Advanced TV software has had a limited uptake so far, despite this strategy.
The interactive TV division should have a successful future though. It promises strong growth in the coming years and could potentially generate billions of dollars of revenues, especially in Europe. Datamonitor expects the digital and interactive TV market to grow by 450% over the next five years, reaching 83 million households in 2005.
The Dutch arrival of the world’s leading software company in set-top boxes heralds introduce major changes in the European interactive TV software market in the coming years. If Microsoft’s Advanced TV software proves successful, today’s leading providers, Open TV, Canal Plus Technologies and Liberate, will have to prepare for a tough battle ahead.
