Microsoft collaborates with Associated Press for online video venture

Realizing that the future is going to be more interactive on the internet and traditional text based news would be someday replaced by online video streaming, software giant Microsoft has teamed up with The Associated Press. Both these companies plan to offer an advertising-supported online video news network in the first quarter of 2006.

Microsoft would be taking care of the technology, revenue model and the video player for the service while AP’s broadcast division will provide the video. They aim to provide at least 50 different stories per day in video format to the viewers of the service. AP is the world’s oldest and largest newsgathering organization and they had announced their plans to offer a similar service earlier this year.

Collaboration with Microsoft would give them the technical know how and Microsoft will gain by providing their consumers enhanced services. AP has said that they would be offering this service free of charge to AP’s 3,500 newspaper and broadcast members who would in return gain from the share in the revenues generated by the network based on how much traffic they generate. Therefore, it is a win win deal for everyone involved in the project.

This network is expected to use Windows-based media player and the online advertisement modules would be powered by the Microsoft’s MSN business. Google has shown the world how to provide free services by earning revenues from online advertisements and now Microsoft is playing tough to catch-up.

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