Microsoft, AP to Launch Online Video News

Microsoft and the Associated Press are joining forces to create a new advertiser-supported online video news service in 2006.

Microsoft Corporation and the Associated Press have announced plans to jointly offer an advertiser-supported online video news service called the AP Online Video Network. Initially, the new service will provide roughly 50 stories a day from the Associated Press’s broadcast division, while Microsoft’s MSN online service will provide the back-end technology, Windows-based branded video players for member Web sites, and (most interestingly) the advertising support for the network. The companies plan to launch the network in the first quarter of 2006.

The Associated Press is one of the largest and longest-running news organizations in the world, and operates as a not-for-profit cooperative owned by member organizations. AP initially announced plans for an online video service in July, 2005, although Microsoft was not named as a partner.

AP plans for the network to be available to AP’s newspaper and broadcast partners for free; those partners would, in turn, share in advertising revenue generated by traffic driven to the video network. AP will have total editorial control over the AP Online Video Network.

The AP Online Video Network would mark the first time MSN has syndicated its video technology and advertising systems to sites outside the MSN network. MSNBC.com will continue to be the exclusive video news content partner for MSN’s network of sites.

Financial details of the arrangement between AP and Microsoft have not been released.