Microsoft signs 3 interactive TV deals

LOS ANGELES: Microsoft Corp. said on Thursday it was joining hands with three

interactive television companies to develop ways to deliver interactive

advertising and let people shop from their TV sets.

The Redmond, Wash.-based software giant would wrap the new technologies into

its Microsoft TV package, which it hopes will give it a foothold in the industry

as broadcasters and network operators start rolling out interactive services.

The partners are ACTV Inc., a New York-based firm that enables Internet

features to be melded with television viewing; eCity, an interactive television

services developer, and RespondTV, a provider of services for interactive

content.

"These agreements demonstrate the benefits of our efforts to create a

rich TV platform for software developers, enabling highly profitable new TV

applications that cable network operators can easily deploy," Alan Yates,

Microsoft TV vice president of marketing, said in a statement.

The deals include plans for trials so the companies can gather real-world

data about how the services are used, Microsoft said.

Thursday's news came a day after ACTV said Microsoft would integrate its

software-based technologies and services with Microsoft's TV systems.

ACTV already has a deal with TBS Superstations to let viewers of the

network's wrestling shows get statistics and biographies of the performers and

chat with other viewers.

Respond's services enable TV network operators to deliver information on

programs or commercials and sell products and services through the television.

eCity's software lets cable TV subscribers choose to view advertisements and

then buy the advertised products or get more information about them.

Shares in Microsoft were pummeled on Thursday amid a broad sell-off in

technology stocks, a day after personal computer maker Gateway Inc. warned its

fourth quarter earnings would fall short of expectations due to slow holiday

sales.

Microsoft stock fell $7-11/16, or nearly 12 percent, to close at $57-3/8.

ACTV fell 7/16, or 6.1 percent, to close at $6-11/16.

(C) Reuters Limited 2000.