David takes on MS Goliath
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February 5, 1998: 11:51 a.m. ET
TV Host fumes at software giant for building program guide into Windows
From Correspondent Steve Young
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NEW YORK (CNNfn) - Fresh from its bruising argument with the federal government about including its Internet browser in Windows 95, software giant Microsoft is gearing up for another fight.
The latest battle involves a small Pennsylvania company called TV Host, which developed a television program guide that works on personal computers. Because the guide was the very first such program based on Microsoft Windows, manufacturers such as Packard Bell were prompted to sign on as partners. And Microsoft was interested, too.
"Microsoft approached us about two years ago and invited us out to Redmond, and they said, wow, this is very interesting, we want to know more about this," said Andrew Harkavy of TV Host.
TV Host says it trusted Microsoft so much, it let the company in on its strategic business plan. Eventually, licensing talks with Microsoft broke down. And then Microsoft began developing its own TV guide, stating it would build it into Windows 98 for free.
Now TV Host is afraid Microsoft will steal the business it developed. The company claims Microsoft is simply using its dominance in operating systems to box out competitors.
TV Host says there is no way it can match the 90 percent market share Windows commands. Harkavy also claims the program has nothing to do with the fundamental function and use of an operating system.
"I cannot fathom how you could define something as content specific as a television guide as part of an operating system," said Harkavy.
Microsoft disagrees.
"This is a logical extension of the system for a certain class of users. No different from enabling desktop publishing a few years ago, or networking capability five years ago," said Jonathan Roberts of Windows Marketing at Microsoft.
Microsoft also insists many companies, including TV Host, will be able to make money as long as they funnel their programming information through Microsoft's new gateway.
TV Host's open criticism of Microsoft is unusual, considering many larger companies hesitate to do so. American Airlines is steaming about the way Windows favors Microsoft's Expedia travel service, which competes with American's SABRE service, according to a well-placed silicon valley lawyer. But, unlike TV Host, American has chosen to stew quietly.
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