The Microsoft Network lately announced that it will be teaming up with the Associated Press to develop the AP Online Video Network, slated to launch in the first quarter of next year. Based on an advertising-supported model, the network will provide AP members with news videos for their Web sites.
The service will be available at no charge to the AP’s 3,500 newspaper and broadcast members. Based on how much traffic they generate, members will share in the revenues generated by the network.
We think the AP is taking a leadership position here in making a decision to shift media. This is the first time that MSN has syndicated its technology, said Todd Herman, director of advertising and business strategy for MSN.
Since we launched MSN Video in January 2004, we have seen a year-over-year 400 percent increase in our video revenues. We are hoping to see even an 800 percent increase with this partnership, Herman said.
Microsoft will supply a MSN Video player and other technology to member Web sites, as well as sell the advertising for the fully ad-supported network.
AP’s broadcast division will provide the video, which will feature about 50 different stories per day, and retain full editorial control over content in the AP Online Video Network.
What is important to know about this announcement is that MSN has selected its video news syndication partner, Herman said. "MSNBC continues to be our content provider for news."
The network is expected to grow as members and partners contribute their own videos.
Many newspapers that previously did not have the resources to produce video content will now have it available at a moment’s notice.
Someone in a local TV station can cut something for the entire AP network, with a reach of millions of people.
Though Microsoft was not mentioned as a partner when the AP first announced its intentions to form an online video network this summer, Herman says the two companies have been in discussion for the last six months.
Part of the six months was spent trying to find ways to make it equitable on each side. We all recognize that video streaming is where it’s at.
Microsoft did not provide financial details of the agreement.
Online video has become a hotly competitive area as more than 50 percent penetration of the broadband market has made it easier for people to watch videos over the Internet, all the while more and more advertising dollars are moving online.