Microsoft tunes in to interactive TV

NEWS Portuguese cable firm TV Cabo has today become the first company in the world to deploy advanced set-top boxes running Microsoft interactive television software. After months of setbacks, the US software giant will provide Cabo viewers with email, home shopping, internet access and online banking facilities over a broadband modem. The interactive television software was originally set for release last autumn through United Pan-Europe Communications, but Microsoft missed the target date. After investing $5bn in AT&T two years ago as part of a strategy to build around 7.5 million set-top boxes, Microsoft is pinning its hopes on interactive television as an alternative source of revenue to the relatively slow-growing PC market. Analyst house Ovum predicts the revenue from sales made over interactive television will grow from about $58m last year to $44.8bn by 2006.