NBC JILTS CYBER-PARTNERS FOR MICROSOFT

In a major shift of allegiances in the online world, NBC today said it would abandon its offerings on America Online and Prodigy to become anchor tenant of Microsoft's planned online network. The deal includes broader collaborations with the software giant on cable services, CD-ROMs and futuristic interactive TV. ButTIME San Francisco bureau chief David S. Jacksonsays its immediate impact is a validation of theMicrosoftNetwork, an online service that the firm plans to bundle with its Windows software as soon as August. "Though most analysts expected that Microsoft would propose an immediate and strong challenge to theestablished online services, their opening lineup wasn't too impressive," says Jackson. Before today, Microsoft's biggest announced feature was a shopping service tied to Home Shopping Network, and it hasn't detailed how it would provide online staples such as news, weather, sports and travel information. NBC "could help lure other big names" to Microsoft, Jackson says, but the move may also pressure other television networks to join rival online services.