Microsoft in MTV and Sony BMG deals
Microsoft has struck pan-European deals with MTV International and Sony BMG to provide programme clips and music videos across its MSN Video service.
The deal will see clips of shows such as South Park and music videos from artists as diverse as Elvis and Britney Spears made available via MSN Video across European countries including the UK, France and Germany.
Microsoft’s deal with MTV, which spans nine countries, will initially involve clips from shows primarily from the company’s flagship channel such as Pimp My Ride, Punk’d, South Park, Cribs and The Hills.
Some clips from other channels such as Comedy Central, Nickelodeon and Paramount Comedy will be available in “some markets”.
“We are overwhelmingly focused on the under-35s and this audience seized control [of content] on the web and by phone a few years ago and they are not handing it over again,” said Gideon Bierer, the senior vice-president of digital media for MTV International.
“You can’t just assume consumers are going to come to you, we have to also go to them.”
The deal builds on the wide-ranging $500m (£250m) advertising and content agreement struck by MTV owner Viacom and Microsoft in December.
Microsoft’s deal with Sony BMG will include thousands of music videos as well as exclusive backstage footage and interviews with the music company’s artists.
Ulrich Jaerkel, the Sony BMG Europe senior-vice president of digital and business development, described the deal as part of an ongoing move away from the company’s traditional business model based on CD sales to becoming a “music entertainment company” with multiple revenue streams.
Sony BMG’s deal will see clips run on MSN Video in 12 countries starting with the UK, France and Germany.
Microsoft, MTV and Sony BMG will split revenue from advertising such as pre-rolls and contextual ads that run around the MSN video player.
John Mangelaars, the vice-president of Microsoft’s online services group for the Europe, Middle East and Africa region, said the deal marked a key step in a wider strategy to make MSN a “social portal”.
Source: Guardian
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