Microsoft is in trials with telcos including AT&T and Verizon for its Microsoft TV IPTV Edition platform. Using broadband networks, the platform promises broadcast-quality video, instant channel change and multiple picture-in-picture features along with video on demand (VOD) and DVR functionality. The IPTV software was designed to integrate seamlessly with IP-based communications and media services for PCs, phones, and other consumer electronics devices.

On the cable side, Comcast has led the way in IPTV deployment in the U.S., using Microsoft’s Foundation Edition platform for the cable market.

According to an August 2005 report by eMarketer, there were 273,000 IPTV subscribers in the U.S. in 2004. That number is expected to jump to 3.4 million by 2010.