As reported by Dionne Searcey and Roger Cheng on page B4 of today's The Wall Street Journal, AT&T is delaying the roll-out of its long-anticipated IPTV service to additional markets due to "glitches" in Microsoft technology used to power the service. AT&T had already begun to offer its new IPTV service in 11 U.S. markets. AT&T CFO Rick Linder discounted concerns about this slow-down, attributing them to issues surrounding "normal product development" and said that he expects the service to be available to 8 million homes by end of the year. Nonetheless, AT&T more directly pinned these issues on Microsoft than it had previously, according to the Journal, and AT&T's Internet-based TV service is a central/core strategic initiative for the company in its fight against cable companies. 7 major telecom companies worldwide rely upon Microsoft technology to power their own IPTV services.
In unrelated digital media news of the day, the dislocation at the major record labels continues, as EMI has decided to merge two of the music industry's best known labels, Capitol Records and Virgin Records, in what the Los Angeles Times calls a "sweeping reorganization prompted by the company's financial troubles."