AOL lines up digital TV alliances

AOL today unveiled four alliances designed to promote interactive digital TV in the US.

The Internet service provider is partnering Directv and manufacturers Hughes Network Systems, Philips Electronics and Network Computer, to develop technology which allows Web services through television sets.

The announcement comes just days after Microsoft unveiled a $5bn investment in telecoms company AT&T to put its Windows CE software in five million set-top boxes.

Directv claims it is the leading digital TV provider in the US with more than seven million subscribers. AOL plans to use its technology to add new features and increased functionality to the service.

In a written statement, Barry Schuler, president of AOL, said he was lining up to deliver "the best interactive TV experience available anywhere". Analysts see the move as AOL's first concrete step in its 'AOL Anywhere' strategy for non-PC online access.

Noah Yasskin, analyst at Jupiter Communications, said the venture lines up the AOL, Netscape and Sun partnership as the main competitor to Microsoft in the non-PC Internet access market.