MS UltimateTV not so ultimate?
Music Industry News - as it happens
Source: Mi2N/MusicDish - January 30, 2001
Microsoft is "restructuring" its UltimateTV group, cutting one-third of 500
associated jobs. Launched about a year ago, UltimateTV offers digital video
recording and Web surfing via DirecTV's satellite television network.
Microsoft said the service will still be available but UltimateTV will no
longer be a part of the company's TV division. Instead, it'll be folded into
the new television services group in Microsoft's MSN division.
According to Yankee Group analyst Aditya Kishore, pickup rates for
UltimateTV, like all digital video recording services, have not been as high
as many in the industry had anticipated they would be, says a January 22
ZDnet report, continuing, "Kishore noted, however, that the reassignment of
UltimateTV workers to Xbox could mean that Microsoft wants to add digital
video recording (DVR) to the game console. 'It will be interesting to see
what will happen with UltimateTV and Xbox. We could see the fruition of the
Trojan horse idea to get into consumers' homes,' Kishore said. 'Thus far, it
has been difficult to sell DVR as a standalone product, but combining it
with the popular Xbox could change that'." The story also had Microsoft
spokeswoman Erin Brewer saying, "We're reorganizing UltimateTV to better
align it with our entertainment and television efforts".
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