Break Out the Popcorn, We're Going Surfing: Net-top Boxes: A Cheap and Easy Way to Bring the Internet to TV

by Jim Mikles
Winter 1997

Savvy television consumers will no doubt notice that suddenly, there are a whole bunch of electronic devices on the market promising to merge the TV and Internet into a single home information, communication and entertainment portal

It's an interesting phenomenon in several respects. Romantic proponents of the technology wave the flag and say Internet TV boxes (we'll call them Net-top boxes) are the most inexpensive way to bring the Internet to the heretofore unwired masses, allowing them access to what will certainly become the mass communication medium of choice for the dawn of the 21st century. Stuffy technology critics look down their noses and say Internet TV boxes are a passing fad. They argue that it's mainly people who already have the Internet in their homes or offices who are interested in this technology, and when they realize the Internet is really better on a computer than the TV, demand will wane and the market will wither and die.

The tentative but steady increase in interest so far indicates the truth probably rests somewhere between the two extremes. There are roughly a quarter of a million people, give or take a few thousand, already connected to the Net through their TVs, according to a composite of the latest estimates from WebTV Networks and the Consumer Electronics Manufacturers Association. After a year on the market, this number indicates people are moderately interested in the possibilities of Internet TV, but they're not flocking in droves to connect their televisions to the Net. For most, it's still just too weird.

But if the astounding growth of the Internet itself has demonstrated anything, it's that once people become familiar with its culture, intricacies and idiosyncrasies, they love it. And if they can connect their TVs to it and find it provides a whole new realm of TV content for less than the cost of the average monthly cable bill, then they probably will. Forces of supply and demand additionally dictate that when a sufficient number of people are connected in this fashion, then the Internet, or at least part of it, will shift in design to meet this new market.

This is what some of the biggest names in consumer electronics and software manufacturing are guessing, anyway, and in many ways, it is already happening. Just in time for the holiday shopping season, there are more than a dozen Net-top boxes on the market, all hoping to grab a piece of the pie.

Honey, What's On The Internet Tonight?

The Internet on TV is not the same thing you get on your PC. Far from it, as a matter of fact. As a home entertainment medium, viewed in a social setting from the sofa at 10 feet, the Internet is mostly "not ready for prime time." It is rapidly adapting to this new venue, however, and a growing amount of content is available designed specifically for a TV and Net-top box.

Broadcast and cable networks see the Internet, especially the multimedia-based World Wide Web, at the very least as an opportunity to enhance and cross-promote its television programming, and at most a completely new way to pipe entertainment and advertising into peoples' homes.

NBC, with its Microsoft affiliation, has been the most aggressive and innovative in this category, creating whole new narratives and story lines for the Web that accompany its regular broadcasts. Fox, ESPN, The Discovery Channel, PBS, and more all have strong presence on the Web.

If this trend continues, and there is every reason to expect it will, it's only a matter of time before the Internet has its own primetime season, complete with original, online dramas and miniseries. The Microsoft Network, a popular Internet Service Provider network, is already moving in this direction with Internet "channels" that change from season-to-season. Since Microsoft's purchase of WebTV Networks last year, we can probably expect to see more of this type of online concept programming in the works.

Another trend is toward personalized Internet TV service. In fact, one of WebTV Network's key content competitors, the San Francisco-based NetChannel, bills itself as a "custom television service provider." Rather than random channel or web surfing, NetChannel promises custom content aimed at specific interests sent to the living room via both the TV and the Internet

From these trends, and from looking at all of the TV-based content that's already on the Web--from programming information available at special TV listing sites to the actual programs themselves--it's clear that the Internet is the next great TV innovation. In this volatile environment, the potential for the Web to become a major competitor to traditional television is very real. But this can happen only if millions of additional people tune into the Web to watch something on TV. And that can happen only if the Net-top box gains wide popular acceptance. There are several good reasons to believe this will occur, but the simplicity of the Net-top box is probably the biggest reason the "convergence" of the two most powerful and widespread media on the planet--the Internet and TV--is picking up pace and gaining acceptance. It's cheap and easy--something America loves.

It's cheap to buy the box, with prices ranging anywhere from $250 to $600 (plus monthly subscription fee), and easy to connect it with a cable and a phone line to the TV and the Internet.

Offering features such as e-mail, chat and the World Wide Web for a fraction of the cost of a full-blown PC, a Net-top box brings the Internet to the TV with a minimal amount of grief.

Because it's designed for the typical TV viewer, it requires almost no knowledge about Web browsers, TCP-IP protocols, DNS addresses, or any of the other headaches associated with configuring a computer for the Net.

That's not to say the technology itself is simple. It's stripped-down compared to its PC brethren, but consumers demand performance even as they seek the lowest price, and manufacturers are designing boxes that are already surprisingly versatile.

So What Is A 'Net-Top Box, Anyway

A 'Net-top box is a device that sits on top of the television, plugs in easily to a phone line and the back of the TV to connect to the Internet, and uses a remote control or some other input device (typically a wireless keyboard) to manipulate the graphic user interface.

A brief rundown of the technology:

Some work best with a dedicated phone line, others handle incoming calls through the TV (by notifying the viewer of an incoming phone call), so you may or may not need a dedicated line.
The box connects to the Internet and Web through an Internet Service Provider, a dial-up service that manages Internet connections for end-users. Some boxes have their own ISP, others are ISP independent, and some have their own service, but allow the subscriber to connect with a different one. Internet service typically costs about $20 per month for unlimited use.
A typical box allows users to dial into the Internet to get Web pages, use chat rooms and send and receive e-mail.

With more than a dozen different Net-top boxes expected to deluge the market by the end of this year, smart shoppers will have lots of options.

Several different business models, interfaces, content providers and operating systems will be competing for customers, and the way this technology develops will depend on which approach consumers embrace. There is the gaming model, the cell phone model, the multi-level marketing model, the network computer model, the senior citizen model, the Microsoft model, the Mac user model and more. There are different content providers, different ISP providers and different Web browsers. Boxes come in different price ranges and cover several different ranges of functionality.

It helps to compare a few solid points of reference like price, versatility and user interface to cut through the confusion.

Prices for the boxes range pretty widely and relate directly to versatility. The first thing to consider is that, although many of the boxes can run with just a remote control, consensus is that a keyboard is pretty much required for full, extended and satisfactory use. So even though many boxes list the keyboard as "optional," you should just plan on spending the extra $70-$100 and add that to the cost of the box.

Beyond that, the higher priced products, like the Coollogic CL series and the Pippin @World, have substantial processing power and blur the distinction between Net-top box and computer, which is reflected in the price.

The mid-range products, like the Curtis Mathes uniView and NewCom Web Pal, include some extra bells and whistles (like fax capability and removable external storage ports) they offer beyond standard Internet access.

The lowest priced products, like the Sony and Philips WebTV, and the RCA Network Computer, have less in terms of on-board processing capability and peripheral functions, but they are sufficiently outfitted for the task at hand, (surfing the Net), and they offer the greatest affordability.

There are also boxes that follow the cellular phone pricing scheme, like the WebSurfer and Web Passport, and don't cost anything when you buy an extended service contract.

The NetLink upgrade for the Sega Saturn system is priced lower than any of the other boxes on the market, but when you factor in the cost of the Saturn itself and peripherals, it's in the same ballpark.

The last thing to consider is the monthly Internet service fee. Whether you can also use the account for a home PC, or vice-versa, may be a purchase consideration. Two ISP accounts is twice as much as you should be spending.

Another important, but subjective, Net-top box criteria is user interface. The interface consists of what the viewer sees once the box is powered-up and logged-on. The comprehensiveness and ease-of-use of that initial screen will be crucial to the satisfaction and utility of the experience.

Make sure to demo the box before you buy, to get a feel for how intuitive the interface is for you, and whether or not you like the content presented there.

If you do not plan on using a content provider network like WebTV, NetChannel, or one of the others, then your interface will most likely take the form of a web browser. Test it for functionality and ease of use as well. It helps to draw on the experience of someone who is familiar with some of the popular Internet browsers, like Netscape Navigator or MS Internet Explorer, to do this.

Turn on The Tube and Catch a Wave

The ability to "watch" the Internet on TV is a new and exciting development in the realm of mass media. As it catches on, TV will inevitably change, and more and more programming will be developed that specifically caters to the Internet TV viewing experience. Those who sign on now will have the greatest say in how these new media will be developed.

Jim Mikles is Smart TVs Associate Editor