MSN, WebMD End Online Content Deal

MSN AND WEBMD Health, the Internet information unit of WebMD, are ending their five-year relationship under which WebMD provided content to MSN.com’s health channel. MSN expects to launch a new health content service for Jan. 1, when the WebMD deal ends.

"It has been a great partnership, but our goals are different," said Wayne Gattinella, president of WebMD Health. "Our quality of user is different going forward than it was in past."

WebMD Health, which includes the online medical education unit Medscape, accounted for roughly 12 percent of WebMD’s third-quarter revenue of $300 million. WebMD also plans an initial public offering of WebMD Health in early 2005, according to the company.

As of mid-November, the plans for the MSN health channel were still in the works.

MSN expects to launch a new health content service, Jan 1.

MSN’s health site attracts about 4.5 million unique visitors per month, while WebMD Health draws around 21 million unique users a month, including those directed to the site via MSN.

Despite the end of the deal with MSN, Gattinella said new partnerships are expected to add more users to WebMD. Such agreements include: recently-inked deals with CBS News and Fox News to provide health news to their Web sites; the extension of a contract with America Online to provide health content at AOL.com for an additional three years; and the recent acquisition of the drug information Web site RxList.com.

Gattinclla said the agreements will help bring the highest quality user to WebMD’s Web sites, "consumers who are the most health-involved," he said.

-Stephen McGuire

Copyright CPS Communications Dec 2004