ICT and Internet Business is an Independent Blog Focusing on ICT and Internet Business, eBusiness, Digital Media, Online Advertising, Internet Marketing, Mobile and Wireless, etc.
Older Post
Newer Post

Viacom, Microsoft Ink Digital Content and Advertising Partnership

Media giant Viacom Inc. announced a strategic content and advertising alliance with Microsoft Corporation spanning across the two companies and multiple digital platforms. Per terms of the agreement, Microsoft will license long and short-form television and theatrical content from Viacom divisions including MTV, Comedy Central, BET and Paramount Pictures for use on properties like MSN, MSN Mobile and Xbox 360.

Microsoft's Atlas division will serve advertisements for Viacom's U.S. websites, with Microsoft retaining exclusive rights to sell remnant display advertising inventory -- in addition, Microsoft will purchase advertising on Viacom broadcast and online networks, and the firms will collaborate on promotions and sponsorships for MTV Networks and BET Networks award shows. Viacom will also become a preferred publishing partner across Microsoft's casual gaming platforms.

While financial specifics were not released, the deal boasts a projected base value of approximately $500 million in financial considerations and business services over its initial five-year duration, and features a combination of revenue sharing provisions, guarantees and content licensing agreements.

"We are very impressed with how closely Microsoft's business plans complement our strategic objectives. This is a novel and comprehensive partnership that demonstrates the scale of our digital operation and the value of our branded content across all distribution platforms," said Viacom president and CEO Philippe Dauman in a prepared statement.

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's superior assets and expertise in the ad serving and sales business will drive enhanced value to our digital operations."

Dauman added, "We look forward to collaborating closely with Microsoft. This partnership will generate significant value on both sides. This deal is an important example of how the growing success of our digital properties is driving greater revenue for Viacom as a whole." [FierceMobileContent]

0 people have left comments

Commentors on this Post-