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Microsoft Validates Huge Importance of Ad-Supported Online Video

New Agreement Seeks to Provide AP Members with a Customizable Windows Media-Based Video Player

The Associated Press and MSN have announced that they are teaming to provide AP members with news video for their Web sites: in short, the AP Online Video Network is born.

The advertising-supported online video news network will be available in Q1 of 2006.

"This partnership will empower AP members to compete in an emerging segment of Web content," said Tom Curley, president and CEO of The Associated Press. "The expertise MSN brings in online video technology will be a key factor in the success of the network."

Initially, AP will provide approximately 50 video clips per day covering national, international, entertainment, technology and business news, and from there it is envisaged that the AP Online Video Network will grow over time as network members and other content partners contribute their own video.

"We are thrilled to help The Associated Press bring online video to thousands of AP member Web sites," said Todd Herman, director of advertising and business strategy for MSN Entertainment at Microsoft. "The combination of AP news excellence and Microsoft scalable technology will enable our advertisers to better reach the huge audience of people who now turn primarily to the Internet for their information."

In addition to providing AP members with a customizable Windows Media-based video player, MSN will work to develop other network products, including a local advertising and content syndication system for AP affiliates within the network. AP members that use the new service will have the opportunity to share revenue generated by ads on their Web sites.

To date, MSN Video has provided video technology exclusively to sites within the MSN network. This relationship represents the first time MSN Video player technology will be syndicated to sites outside its network. MSNBC.com will continue to be the exclusive video news content partner for MSN's network of sites.

With the new service, AP will make AP news video available to a network of more than 3,500 AP newspaper and broadcast members in the United States. AP will retain full control over editorial content in the AP Online Video Network.

MSN will provide the video player and technology and will sell the advertising for the fully ad-supported service. Participating AP member Web sites receive a custom-branded MSN Video player, daily news video from AP, prestream advertising to run adjacent to the video in the player, and a share of the advertising revenue.


More Stories By Jeremy Geelan

Jeremy Geelan is Chairman & CEO of the 21st Century Internet Group, Inc. and an Executive Academy Member of the International Academy of Digital Arts & Sciences. Formerly he was President & COO at Cloud Expo, Inc. and Conference Chair of the worldwide Cloud Expo series. He appears regularly at conferences and trade shows, speaking to technology audiences across six continents. You can follow him on twitter: @jg21.

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Million Dollar Hosting 07/01/06 02:33:40 AM EDT

It appears that Web + Video, which is now the hottest development, it is no more Web2.0. It is more similar to a merge of Internet and TV, the Web3.0, than to some stage in development of the Web itself.