Today's current crop of Internet-connected TVs do not make the grade, says a study by Forrester Research released to the media recently.

According to Forrester's "WebTV and Beyond" report, the market for Internet- over-the-TV is stuck in a Catch-22 that's all too familiar for new forms of media.

The audience will not buy into the new technologies and services that allow access to the Internet until the content is more compelling. Yet, content providers will not develop content for the new media until audiences grow to a size that justifies the greater expense.

Forrester estimates that only 1 million people will be browsing the Web via the TV by the year 2000. Until then only companies with a vested interest in promoting services will be working to bring better content to subscribers. However, the new century will herald an explosive growth in this new market as forward-thinking content companies like Discovery and NBC start developing interactive content, according to Forrester's report.

But Chip Herman, vice president of marketing for WebTV Networks Inc., disagrees with Forrester's estimates. "I think the projections are extremely conservative," he said. "CD audio showed the same growth trend, but it happened only in a couple of years."

Audio compact discs only needed to translate the content -- analog music - to a digital format. WebTV and other Internet provider must add value not just to the Internet, but also to television broadcasting. And this is the 10-foot barrier that WebTV and other companies are now facing.

WebTV, of course, received a massive boost when Microsoft announced two weeks ago an agreement to buy the company for $425 million. But the company is not just relying on good connections. "We have come to an agreement with TVGuide, E- Online and Discovery," said Herman, "The early elements of these partnerships will be seen by consumers in a couple of months."

No matter what happens though, both analysts and company executes see interactive content coming home to roost. Yet, all are waiting to see if the consumer agrees.

Source: ZDNet News