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Microsoft Corp. plans to extend its IPTV software with links to home PCs as well as digital terrestrial TV networks, renaming its offering Microsoft Mediaroom.

The Mediaroom software will let users access content from a home PC, although Microsoft did not specify the home networking links it will support. It will also support picture-in-picture capabilities, letting consumers choose alternate camera angles when content providers make that option available.

The new Microsoft software also will support digital terrestrial TV in addition to IPTV services offered generally by telephone companies, positioning Microsoft to address a broader market.
According to Microsoft c its IPTV software is currently in use by nine service providers worldwide including AT&T in the US. A total of 18 service providers worldwide have said they will use Mediaroom, said Microsoft.

In addition, Microsoft also introduced the Microsoft Mediaroom Application Development toolkit, which provides service providers and third-party developers with tools to create TV-based applications. The software will help IPTV companies compete with their archrivals in cable-TV who are now deploying their Open Cable Application Platform software to deliver applications on cable-TV networks.

Separately, Microsoft has been working with cable and satellite TV suppliers to forge directly links between those services and the PC. Both DirecTv and Echostar are said to be working with Microsoft and Intel on providing their services directly to PCs, though none of the companies have released a timeline for products.

Today the vast majority of Microsoft's revenues still come from its Windows and Office software for PCs. Its Xbox videogame console has generated a significant market position for Microsoft in consumer electronics, although to date it has been generally without profits.

As the PC market cools, Microsoft hopes new efforts like Mediaroom propel it to growth and real profits in consumer electronics.