FIRM THAT TURNS TV SET INTO BEST BROWSER WINS : RACE BEGUN FOR INTERNET SOLUTIONS ON THAT STAPLE OF LIVING-ROOM FURNITURE.

Byline: P.J. Huffstutter Daily News Staff Writer

Look in a living room and what do you see? A remote control. A comfortable couch. An entertainment system.

Now, move to the den. There you see a keyboard, a straight-backed chair and a personal computer.

In the eyes of the consumer electronics industry, the future of how consumers have fun depends solely on digital convergence - or how to make one appliance look and act more like another.

``People are hearing about the Internet, and they're talking about the Internet. But compared to the number of people who have televisions, which are in 98 percent of American homes, not that many people are using the Internet,'' said David Broberg, manager of new technology research for Mitsubishi Consumer Electronics America, based in Atlanta. ``We want to tap into that mass market.''

Indeed, only 36 percent of all American households have a personal computer, according to a recent survey by Forrester Research in Cambridge, Mass. A mere 10 to 12 percent of those consumers - an estimated 5 million to 10 million households - are somehow connected to the Internet.

Welcome to the age of the Internet TV, complete with remote control and wireless keyboard. Though not as multifaceted as its PC brethren, these new electronic toys enable users to send e-mail and browse through the World Wide Web.

These devices, quite simply, are updated television sets - with cable ports and telephone lines for Internet connections. Once logged on, these products promise to make the Web as close as the clicker.

Today, nearly a dozen companies are developing or selling a Net TV of one sort or another. Even Netscape Communications Corp. is jumping into the fray with Navio, a new company formed by the software giant to build its Internet browser into televisions, phones, cars and other consumer devices.

``This is going to be huge, but I have no idea which company is going to win out,'' said James Barksdale, president and chief executive officer of Netscape. ``Honestly, I don't care who wins. All I know is we want to build the software for it.''

Because no single platform has captured the market, the public's choice of Net tube is varied. Zenith Electronics and Mitsubishi Electric  are creating completely new sets, all ready to connect to the Net with a single cord. The anticipated costs range from $995 for the Zenith model (available in early 1997) to the pricier $2,500 Mitsubishi version, which is set to hit shelves next summer.

Game companies like Sega and Nintendo are adding Net capability to their machines to allow players from all over the world to compete against each other.

Sega's Net Link is a $199 modem that turns a Sega Saturn video game into a low-cost Web browser and e-mail outlet. The modem ships to stores on Thursday, as does the PC-compatible keyboard adapter ($19.95) and the mouse ($24.95).

``We've always thought of the Net as an entertainment platform,'' said Kerry Bradford, general manager of Sega Online. ``We've already got the kids comfortable with our product in the living room. It's a short jump for us to add the Web and e-mail capabilities.''

And then there's Sony and Philips Magnavox, which have designed set-top boxes that plug into normal televisions and make them Web friendly. These companies are licensing proprietary technology from WebTV Networks, a small Palo Alto, Calif.-based firm that also operates its own on-line service.

``This is brain-dead simple,'' said Brad Hill, an Internet consultant for WebTV Networks. ``This opens the door to the Web becoming a family or group activity.''

Critics argue that using the Internet - an interactive adventure - will lose its appeal if relocated to the living room, where consumers are accustomed to the passive television experience.

``People are conditioned to getting on the Net in their office, not their living room,'' said Marc Geiger, new-media expert for American Recordings. ``Who's going to want to sit on their couch with a keyboard? It will be a five-year evolution to teach adults to move their computer and experience it in the hearth of their home.''

Not so, insist executives in the cable and telephone industries, which are vying to provide faster means of transmitting data. They point to the recent

sales boom of Sony's WebTV.

Locally, consumers are ``gobbling up'' the company's latest electronic toy, said Avedis Kifedjian, supervisor of the video department at Fry's Electronics in Woodland Hills.

``About a week ago, I had 50 of these WebTVs,'' Kifedjian said. ``Now, I have only 24 and I'm sold out of the keyboards. I expected this to be a hot Christmas item, but not this hot.''

Though neither Sony nor Philips will disclose how many units they have sold since they began shipping in mid-September, company officials expect joint sales to break the six-figure mark by Jan. 1. The Sony version lists at $349 and Philips' sells for $329.

``In the 15 years I've been involved in the computer electronic industry, I've never seen consumers accept a product so quickly,'' said Jim Bonan, Sony's vice president for new business development.

Bonan attributes consumer interest to WebTV's relatively inexpensive price. If people feel uncomfortable with a tool as mainstream as a VCR, they may hesitate to spend $2,000 on a new PC in order to use e-mail and get on the Web. But when that price tag drops to $199 for something you plug in and play, the purchase is easier to justify.

``Think of a CD player or a camcorder: Both do one thing very well and don't cost very much,'' Bonan said. ``That's what everyone wants out of WebTV. That is the goal.''

ON THE TUBE

Products that link TV to the Internet:

Apple's Pippin computer, a TV plug-in Net browser and CD-ROM player. Price not set. Available spring.

Gateway 2000's Destination Big Screen PC, a hybrid TV-PC, ranges from $3,500 to $4,500. Available now.

Philips' WebTV, $329. Available now.

Sony's WebTV, $349. Available now.

Sega Saturn's Net Link 28.8 modem, $199; mouse $24.95; keyboard adapter, $19.99; game console, $199. Available after Thursday.

Thomson/Compaq's pricey TV-PC, ranges from $2,000 to $4,000. Available early 1997.

CAPTION(S):

Box, 2 Photos

Box: ON THE TUBE (See text)

Photo: (1--Color) WebTV allows the viewer to select favorite sites.

(2--Color) The main menu helps exploration.