Microsoft scales back prices for MSN TV

ZDNet | at | by Mike

Microsoft is offering a low-cost version of its interactive TV service, allowing users to surf the Web for prices starting at $9.95 per month. The company on Tuesday announced its MSN TV Internet receiver, which hooks up to a TV set and a phone line to access the Internet. Manufactured by Thompson RCA, it's based on the Web TV product that Microsoft acquired in 1997. Microsoft renamed that service MSN TV last year and appeared to focus on more advanced interactive TV ventures, particularly its UltimateTV service, which combined TV-based e-mail and Web surfing with a DirecTV satellite service and digital video recorder technology. The new MSN TV box is priced at $99 and comes with two pricing plans: an economy plan costs $9.95 per month for 5 hours of service, with each additional hour costing $2.95. An unlimited access plan sells for $21.95 per month.