Not just Windows for Microsoft: software giant wants a piece of the TV action.

Microsoft Chairman Bill Gates is getting close to making his dream of getting Microsoft software into every piece of advanced TV hardware come true. Microsoft's latest television activity took place in June, when Gates invested $1 billion of his more than $30 billion fortune (virtually all of which now consists of ownership stake in the company) in Comcast, America's fourth largest MSO. The move is part of Gates' plan to accelerate the development of broadband networks that will link Microsoft's operating systems across the Internet.

In addition to the Comcast venture, Microsoft's other TV activities include getting into the battle over digital broadcast standards, buying WebTV for $425 billion and contributing to MSNBC, a joint venture with television network NBC. MSNBC is currently available in 38 million households throughout the U.S. and boasts wide support from national advertisers. Microsoft designs the applications for the MSNBC Web site and has committed $250 million to the MSNBC project over the next five years. As for WebTV, Gates said that the partnership "underscores our strategy of delivering to consumers the benefits of the Internet together with emerging forms of digital broadcasting." The WebTV acquisition is part of Microsoft's strategy to implant its technology into every type of consumer electronics device available. WebTV will use Microsoft's recently introduced Windows CE operating system, which is designed for a variety of mobile computing, entertainment and embedded applications. It is an all-purpose, low-cost operating system used in a variety of things like CDs and DVDs.

Craig Mundie is the Microsoft rep who works with the broadcasters. As senior vp of Microsoft's Consumer Platforms division, Mundie basically deals with all of the non-computer projects; he works with the FCC and the NAB and is also involved in the digitalTV effort. During his keynote address to the National Association of Broadcasters in April, Mundie said that "the WebTV offerings would, over time, take full advantage of key Microsoft technologies, including multimedia versions of Windows CE."

Microsoft recently formed an alliance with personal computer manufacturer Compaq and microprocessor manufacturer Intel in order to get involved in the battle over digital standards. Called the DTV Team, it was formed to ensure that the new digital standard will be compatible with the personal computer's handling of video and that computer companies will have access to the data streams coming from the broadcasters. The digital strategy includes a spectrum of products and standards-based initiatives aimed at developing a strong working relationship with the broadcast industry. The DTV Team's main goal in the U.S. is to accelerate access to digital TV for the consumer. (The DTV Team would also like to work with the European broadcast industry to adopt standards that would provide broadcasters and their audiences with the widest variety of options while preserving the ease of use of the current television model.) Microsoft and the computer industry (and the ABC television network) favor the progressive scanning transmission technology, which would allow computers to display digital TV signals. The other broadcasters favor a rival technology called interlaced scanning, which would not allow computers to double as TVs. According to a July New York Times article, the "computer industry's bold challenge appears to be running out of steam, and the industry leaders are finding it hard to get support even from others in the personal computer business." Executives at IBM, Dell Computer, Packard Bell, Hewlett-Packard, Gateway 2000 and Sony have all reportedly said that they have no plans to build digital TV receivers into their computers. "Microsoft's position all along has been for the market to decide the standard," asserted a company spokesperson.

The next releases of the Microsoft Windows and Windows NT operating systems will enable personal computers to receive video and digital data from existing satellite, cable and terrestrial broadcast sources. Every copy of Windows is expected to incorporate the ability to receive interactive entertainment and information delivered via the high-speed nationwide television networks. NBC Interactive anticipates that its planned digital television signal will be received by computers as well as digital television sets.

Earlier this summer, Microsoft formed a joint Internet venture with Kerry Packer of Publishing & Broadcasting Ltd., who is considered to be the richest man in Australia. Although the venture is still unnamed, it will draw on the resources of Publishing & Broadcasting Ltd.'s television arm, Nine Network Australia, and its magazine business,Australian Consolidated Press. The venture will also use Microsoft's online technology and will draw content from Microsoft's other products.

Microsoft's Many Media Ventures

* WebTV - Crucial part of plan to combine the Internet and digital TV

* Comcast - $1 billion investment to accelerate development of bandwidth infrastructure and the Internet

* MSBET - Joint interactive venture with Black Entertainment Television

* MSN - Online service with 2.5 million subscribers

* MSNBC (with NBC) - Global 24-hour cable news network and online service

* DreamWorks Interactive (with DreamWorks SKG) - Software company that creates interactive entertainment