WorldGate Web Service to Be on Motorola TV Boxes With (msft) Microsoft By Jonathan Make
New Orleans, May 7 (Bloomberg) -- WorldGate
Communications Inc. said its service connecting televisions to the Internet over cable lines will be used with Microsoft Corp.'s operating system on set-top boxes made by Motorola Inc.
Motorola's DCT 5000 set-top boxes, among the newest devices for interactive TV, will be compatible with the WorldGate service, which will run on Microsoft's operating system for the devices. For $7 to $12 a month, WorldGate's service lets people send and receive e-mail and get more information on advertised
products on their televisions.
WorldGate sales could get a boost if cable providers
using Motorola set-top boxes sell the service to their customers. Money- losing WorldGate had 19,000 customers as of March 31, a small fraction of the 70 million U.S. subscribers to cable TV.
WorldGate, based in the Philadelphia suburb of
Trevose, Pennsylvania, lost $10.8 million in the first quarter on $1.6 million in revenue. Today, WorldGate Chairman and Chief Executive Hal Krisberg told the National Cable Television Association's annual gathering in New Orleans that he expected to soon announce an alliance with Microsoft, the world's
largest software maker.
Motorola acquired General Instrument Corp. for $17 billion in
January to become the No. 1 U.S. maker of set-top
boxes. Shares of Schaumburg, Illinois-based Motorola fell 1 5/8 to 109 1/8 Friday on the New York Stock Exchange.
WorldGate shares rose 5/16 to 21 7/8 in Nasdaq Stock Exchange trading. Redmond, Washington-based Microsoft rose 11/16 to 71 1/8 on the Nasdaq.