While Microsoft has already passed the 1 million number in set-top boxes for their Mediaroom software, with a number of homes having more than one using it, sometime in the first quarter they're set to attain their one millionth customer, a solid milestone in the IPTV market.
This is especially a potential boon to the telephone companies, as they look for avenues to compete with the satellite and cable companies.
Even though Microsoft (MSFT) got beat to the IPTV international market by Siemens AG, a German company, their partnerships with thirteen telephone companies around the world give them a strong base to build the business out from. Not only that, but there are eight more companies testing out the product before rolling it out.
America's largest telephone company, AT&T (T), alone plans on reaching 1 million U-verse video customers by the end of 2008. They have a goal of offering the service to 30 million homes by 2010.
Microsoft head of TV business Enrique Rodriquez says he expects the business to explode like the curve on a hockey stick in upward growth in the very near future.
"The growth curve will be shaped like a hockey stick. It's going to be much more aggressive than linear," said Rodriguez.
On Sunday the company revealed a new feature included with Mediaroom called DVR Anywhere. What that does is enable users to view recorded television shows on any television in the home as long as one set-top box in the house has a hard drive in it.
IPTV or Internet Protocol Television software allows users to have video content distributed over high-speed Internet networks.
After years of trying a variety of different products and services in this space, it looks like Microsoft has a potentially big winner on its hands, and it fits well within their core expertise of software.
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