MSN TV (formerly WebTV) was a web access product consisting of a thin client device that used a television for display (instead of using a computer monitor), and the online service that supported it. The original WebTV device design and service were developed by WebTV Networks, Inc., a company started in 1995. The WebTV product was announced in July 1996 and later released on September 18, 1996. In April 1997, the company was purchased by Microsoft Corporation and in July 2001, was rebranded to MSN TV and absorbed into MSN. While most thin clients developed in the mid-1990s were positioned as diskless workstations for corporate intranets, WebTV was positioned as a consumer product, primarily targeting those looking for a low-cost alternative to a computer for Internet access. The WebTV and MSN TV devices allowed a television set to be connected to the Internet, mainly for web browsing and e-mail. The WebTV/MSN TV service, however, also offered its own exclusive services such as a "walled garden" newsgroup service, news and weather reports, storage for user bookmarks (Favorites), IRC (and for a time, MSN Chat) chatrooms, a Page Builder service that let WebTV users create and host webpages that could later be shared to others via a link if desired, the ability to play background music from a predefined list of songs while surfing the web, dedicated sections for aggregated content covering various topics (entertainment, romance, stocks, etc.), and a few years after Microsoft bought out WebTV, integration with MSN Messenger and Hotmail. The setup included a thin client in the form of a set-top box, a remote, a network connection using dial-up, or with the introduction of Rogers Interactive TV and the MSN TV 2, the option to use broadband, and a wireless keyboard, which was sold optionally up until the 2000s. The MSN TV service lasted for 18 years, shutting down on September 30, 2013, and allowing subscribers to migrate their data well before that date arrived. The original WebTV network relied on a Solaris backend network and telephone lines to deliver service to customers via dial-up, with "frontend servers" that talk directly to boxes using a custom protocol, the WebTV Protocol (WTVP), to authenticate users and deliver content to boxes. For the MSN TV 2, however, a completely new service based on IIS servers and regular HTTP/HTTPS services was used.
History
Concept
Co-founder Steve Perlman is credited with the idea for the device. He first combined computer and television as a high-school student when he decided his home PC needed a graphics display. He went on to build software for companies such as Apple and Atari. While working at General Magic, the idea of bringing TVs and computers together resurfaced. One night, Perlman was browsing the web and came across a Campbell's soup website with recipes. He thought that the people who might be interested in what the site had to offer were not using the web.
Early history A Silicon Valley startup, WebTV Networks was founded in July 1995. Perlman brought along co-founders Bruce Leak and Phil Goldman shortly after conceiving the basic concept. The company operated out of half of a former BMW car dealership building on Alma Street in Palo Alto, California, which was being used for storage by the Museum of American Heritage. WebTV had been able to obtain the space for very low rent, but it was suboptimal for technology development. Before incorporation, the company referred to itself as Artemis Research to disguise the nature of its business. The info page of its original website explained that it was studying "sleep deprivation, poor diet and no social life for extended periods on humans and dwarf rabbits". The dwarf rabbit reference was an inside joke among WebTV's engineers – Phil Goldman's pet house rabbit Bowser (inspiration for the General Magic logo) was often found roaming the WebTV building late into the night while the engineers were working—although WebTV actually received inquiries from real research groups conducting similar studies and seeking to exchange data. The company hired many engineers and a few business development employees early on, having about 30 total employees by October 1995. Two early employees of Artemis were from Apple Inc: Andy Rubin, creator of the Android cell phone OS, and Joe Britt. Both men would later be founders of Danger, Inc. (originally Danger Research). WebTV Networks' business model was to license a reference design to consumer electronics companies for a WebTV Internet Terminal, a set-top box that attached to a telephone line and automatically connected to the Internet through a dial-up modem. The consumer electronics companies' income was derived from selling the WebTV set-top box. WebTV's income was derived from operating the WebTV Service, the Internet-based service to which the set-top boxes connected and for which it collected a fee from WebTV subscribers. The service provided features such as HTML-based email, and proxied websites, which were reformatted by the service before they were sent to set-top box, to make them display more efficiently on a television screen. WebTV closed its first round of financing, US$1,500,000, from Marvin Davis in September 1995, which it used to develop its prototype set-top box, using proprietary hardware and firmware. The company also used the financing to develop the online service that the set-top boxes connected to. WebTV leveraged their limited startup funds by licensing a reference design for the appliance to Sony and Philips. Eventually other companies would also become licensees and WebTV would profit on the monthly service fees.
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