Microsoft’s blank screen
Despite $10 billion-worth of investments in cable systems in America and Europe, Microsoft’s television strategy is in trouble
WHEN United Pan-European Communications (UPC), Europe's largest cable company, announced on September 10th that it would buy the software for its digital set-top boxes from Liberate, a small company in San Francisco, the impact of the news was felt most heavily in Redmond, Washington. Three months ago, Microsoft increased its stake in UPC to 8%. The industry assumed that the investment was to ensure that Microsoft got the contract for the set-top-box software that UPC would need to switch its customers to a digital interactive system. Instead, Liberate, Microsoft's main competitor, got the business. UPC has thus delivered the biggest set-back yet to Microsoft's aim to become the dominant supplier of smart-television software.
This article appeared in the Business section of the print edition under the headline “Microsoft’s blank screen”
From the September 16th 2000 edition
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