In a joint press release today, Viacom Inc. and Microsoft Corp. have announced a strategic partnership in which Viacom will supply Microsoft with movies, videos and games, and in return Microsoft will sell advertising for Viacom’s Internet sites. The agreement is for five-year and worth up to $500-million.
Under the deal, Microsoft will license, on a nonexclusive basis, entertainment content from Viacom’s MTV Networks, Paramount Pictures movie studios and BET Networks, for use on its MSN website and on its Xbox 360 game system.
Microsoft also will buy advertising on Viacom sites, and the companies will collaborate on promotions and sponsorships for award shows on MTV Networks and BET Networks, they said.
The agreement makes Microsoft the exclusive seller of remnant display advertising - or unsold ad inventory - on Viacom’s U.S. websites. Microsoft’s Atlas division will become the ad server for Viacom’s domestic websites as well, the companies said.
December 19th, 2007 at 2:22 pm
Sounds like fighting words between Viacom and Google. The partnership will ultimately help Viacom with its content distribution but I don’t think it will help so much that they can afford to not distribute on Google/YouTube.
December 19th, 2007 at 8:08 pm
Your right! That’s why Viacom signed a non exclusive deal with Microsoft. Brilliant! Microsoft fared well too. They now sell advertising, albeit remnant ads, on some of the best web properties around.