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Microsoft, Viacom Seal $500 Million Advertising Deal

Posted on: Friday, 21 December 2007, 12:00 CST

Software giant Microsoft and entertainment broadcasting services provider Viacom have agreed to share content and partner on advertising initiatives for next five years in deal worth $500 million.

Under the terms of the agreement, Viacom said that it will allow Microsoft a non-exclusive license to use its content, including its programs on MTV Networks, Comedy Central, Black Entertainment Television and Paramount Pictures on the MSN website and Xbox 360 games system.

In response, Viacom said that it will use Microsoft's Atlas AdManager digital advertising technology for its US website to place online ads as well as monitor and optimize their effectiveness. Microsoft acquired the AdManager technology through its acquisition of aQuantive in August 2007.

Microsoft will also have an exclusive right to sell some display advertising inventory on Viacom's sites and both companies will share the revenue.

Viacom earlier subscribed to online ad services provider DoubleClick, which is currently embroiled in the US antitrust and competition reviews due to its acquisition by Google. According to the Financial Times, the Viacom account will be DoubleClick's most high-profile loss since its deal with Google was announced.

Philippe Dauman, president and chief executive at Viacom said: "By taking advantage of industry leading assets at both our companies, this landmark alliance brings valuable promotional power and increased monetization to our wide portfolio of branded websites, which collectively represent the leading entertainment presence online."

Microsoft and Viacom had previously collaborated on MTV's digital music store Urge, which was closed in August this year after low interest.

Source: ComputerWire daily updates

Source: Datamonitor

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