Internet connected or online TV is becoming a big story these days, especially for the next week, as we are going to experience several releases during CES.  As of now, Apple and Google are the biggest players behind the connected TV efforts, but they won’t be showcasing their technologies at Consumer Electronics Show, Las Vegas this year. This has given a big chance to Microsoft to jump on the hottest topic of the year.

A recent Seattle Times column on Microsoft reads something like this,

“Microsoft’s going to make a splash in this market with a stripped-down version of Windows tailored for set-top boxes and connected TVs. The software is a version of its embedded device software, overlaid with the Windows Media Center interface, with media streaming and remote-control capabilities.

These new Windows TV boxes have been glimpsed online since Microsoft unveiled its new embedded software lineup in April, and then again at an Intel conference in September. The boxes are expected to cost around $200 and go on sale later this year. They’ll pose a serious challenge to the new Apple and Google TV devices, largely because the Windows boxes have a polished and familiar TV-program guide that makes it easy to blend and navigate both online and broadcast content.”

We know that Microsoft has serious plans to introduce tablet PCs  during the show. Additionally, it may also launch new Xbox 360 social communication system called Avatar Kinect, along with a Windows-based set top box at the event.  This set top box is coming with a platform that is a stripped-down version of the existing Windows OS. It is expected to retail for around $200.

A new Iomega TV with Boxee + Storage is also slated for release during the show that comes with an internal 3.5-inch hard drive with either 1TB or 2TB capacities and can stream content from its internal storage to other network players.  This device is compatible with a variety of online sources including Hulu, Fox, FX, Comedy Central, HGTV, and the Cartoon Network.

The new Intel insider is also on its way and is designed to prevent illegal copying of high- definition films. It is especially designed to provide Hollywood movie download security.

The breadth of online TV-related releases shouldn’t come as too much of a surprise, given the efforts from Google TV and Apple in the past year.  Companies like Netflix and Hulu have helped to bring connected TV trends to mainstream audiences, and consumer behavior is starting to reflect these changes.  A recent Forrester research report informs that online TV is beginning to match offline TV behavior. Most of the US consumers are spending as much time on online TV as they spend on watching traditional TV. This includes people of age group 18-30 and 31-44 years of age. This is a really good indicator, as more and more brands are coming with their innovations in online TV industry.