In an effort to snag more of the U.S. broadband market, Microsoft Corp. said Tuesday that it is going to offer a high-speed video player across its MSN network for free.
The Redmond, Washington company plans to offer free access to on-demand news, sports, entertainment and programming to U.S. consumers in the fourth quarter of this year, Microsoft said in a statement.
MSN Video will use the company's Windows Media 9 Series technology, with the same on-screen interface and Windows Media 9 Series Player controls across the MSN network. It will be completely supported by revenue generated from video advertising services and contextual ads, Microsoft said.
The service is currently in beta and will be exclusively offered in the U.S.
Content offerings from NBC News and MSNBC.com will be available at launch, with plans to add other content providers shortly. Consumers will be able to access the content on-demand, condense programs, combine shows and play back-to-back video from multiple sources, Microsoft said.
Olivier Beauvillain, an Internet content analyst with Jupiter Research in Paris, said that given that MSN doesn't appear to have any exclusive content deals, it's wise to offer the service for free.
"Research has shown that it is very hard to charge for broadband video, unless you are offering exclusive sports, adult or movie entertainment," he said.
RealNetworks Inc. has been able to attract subscribers to its RealOne service because of its exclusive sports offerings, he said, but users would be unlikely to pay for the general news and information MSN is offering.
"This is a value-add for its Internet access service," he said.
Microsoft said that MSN Video is one of several broadband offerings set to launch in the U.S. later this year, including MSN Premium and Plus, which is the latest version of MSN's premier subscription service.
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