Microsoft shifts WebTV oversight to Redmond

"MSN will assume responsibility for the WebTV Internet-on-TV service and will become the Internet service for WebTV's products," a Microsoft representative told CNET News.com on Thursday. The move is not expected to produce any changes for subscribers to the television-based Internet service, the representative said. The company is not planning any job cuts as part of the move. The Mountain View, Calif.-based unit that manages the WebTV service will report to MSN General Manager Mark Looi in Redmond, Wash., according to an internal memo. News of the changes at WebTV was reported earlier by the site Net4tv Voice, which tracks the interactive TV market and first published details of the Microsoft memo. Besides the WebTV service, Microsoft also is using WebTV's technology in its soon-to-debut UltimateTV service. That offering combines interactive television, a digital video recorder, satellite TV and Internet access. Microsoft said that the group that develops the WebTV units will continue to be a part of the Microsoft TV operation, while UltimateTV will remain in Mountain View, headed by Leak. Microsoft acquired interactive TV pioneer WebTV in April 1997 for $425 million. Although WebTV continued to grow after the acquisition, the number of subscribers eventually hit a plateau at about 1 million.