MSN Video to be advertiser, not subscriber, supported

MSN Video to be advertiser, not subscriber, supported
When MSN launches its beta MSN Video early next year, the service will be advertiser supported, according to a report today in MediaPost. The decision was made at the urging of Starcom Media (SMG), the ad agency that is taking the lead in broadband TV advertising. Previous broadband video ventures, including those by Yahoo and AOL, have all been subscriber-supported. Content will initially be limited to programming from NBC and MSNBC.com, though additional suppliers will be added when the service formally debuts in early 2004. Among the featured NBC programs will be The Today Show, NBC Nightly News with Tom Brokaw, Dateline and Meet the Press. “It’s the next generation of advertising,” claimed MSN product manager Karen Redetzki. “TV is still a great place for advertisers to be for branding campaigns, but we’re adding interactivity to that.” She also touted the demographic desirability of the broadband audience: “Younger adults and tech-savvy older adults are the heaviest users of streaming media, and they’re the higher-income earners that advertisers are looking for.”

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