Microsoft, AP Teaming Up To Broadcast Video
The biggest test for Microsoft’s AdCenter will come early next year, when the company launches an advertiser-supported video network featuring content from the Associated Press.
AP plans to share the revenue generated by the plan with its newspaper and broadcast members, all of whom would be offered the network free of charge, the San Diego Union-Tribune reported.
The revenue model, where members’ shares would be based on traffic driven to the network, looks a lot like a proposal Mark Cuban made on his blog on Sunday.
In the deal, which has been percolating at AP since a July board meeting, will have Microsoft provide the ad support, video player, and network to carry the videos. Financial details like the revenue split or initial investments haven’t been disclosed.
AP will continue to sell video to buyers like Yahoo, the report said. Videos sold to non-network buyers will not have the ads as those on the network will. “We want to make it as large a network as possible,” Jim Kathman, the head of strategy for the AP’s broadcast division, said in the story.
The deal will prevent Microsoft from making other broadcast arrangements with rival news organizations. However, they could work with non-news content.
David Utter is a staff writer for WebProNews covering technology and business. Email him here.