Interactive Age reveals that Microsoft is in talks with Viacom to Provide First Entertainment Content for the new online Microsoft Network.MANHASSET, N.Y.--(BUSINESS WIRE)--February 27, 1995--CMP's Interactive Age, revealed today that Viacom and Microsoft are engaged in talks about bringing Viacom's entertainment franchises to Microsoft's Microsoft Network See MSN. Microsoft Network - The Microsoft Network , the company's online service due to launch in August. Interactive Age, the bi-weekly newspaper covering content, technology and communications for the Information Highway, was also the first publication, in its January 30 issue, to break the news that Howard Stringer Sir Howard Stringer (born February 19, 1942) is a British businessman and Chairman and Chief Executive Officer of Sony Corporation. Previously he was chief executive of Sony Corporation of America before being promoted to the highest post. was about to leave his post at CBS (Cell Broadcast Service) See cell broadcast. . What follows is the full text of the article from the Feb. 27, edition of Interactive Age. "Microsoft seeks its MTV MTV in full Music Television U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business. : Viacom in talks to link with online MS Network" By Robert Silverman New York--Microsoft Corp. is in negotiations with Viacom Inc. to bring popular Viacom entertainment franchises to the new Microsoft Network, Interactive Age has learned. The talks involve such brand names as MTV and "Star Trek  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. ," which could become the first entertainment content signed to Microsoft's new commercial online network. The companies have been in talks since late last year and sources say a nonexclusive deal is expected sometime in the next few months. "We can't speak at his point about any contracts or discussions with our content partners that we haven't already announced," said John Williams This biographical article or section needs additional references for verification. Please help [ to improve this article] by adding additional sources. Unverifiable material about living persons must be removed immediately, especially if potentially libelous or harmful. , Microsoft's online group manager of market development, who refused to provide specifics regarding contract terms or programming content. A Viacom corporate executive confirmed the talks were ongoing, but added, "We haven't signed anything yet." Representatives at the company's MTV and Paramount Pictures divisions also confirmed the talks. Viacom already has content agreements with both America Online See AOL. Inc., for MTV, and Prodigy Services Co., for Nickelodeon and Showtime. For Microsoft, the deal would bring not only the drawing power of Viacom's potent brand names, but also credibility for its proposed online network, set to launch in August. As with Microsoft's other content deals, any deal with Viacom would see Microsoft maintain all file servers and provide systems support in exchange for a minority stake of revenue generated from online use. The business model for Microsoft's online service is an open one, letting content providers charge user subscription fees and event ticketing, or sell advertising. Earlier this month, 52 PC hardware and software companies announced they would begin offering technical support and related data on the new MS Network. Viacom's online interactive services division--under the leadership of Viacom Interactive president Geoffry Darby--is responsible for making online deals for all Viacom properties, including those acquired in its takeover of Paramount Communications Paramount Communications Media and communications corporation. It was founded (as Paramount Pictures Corp.) by W. W. Hodkinson in 1914 as a film distributor. It became a motion-picture company two years later and won attention with stars such as Mary Pickford, Gloria Inc. Paramount Pictures' online executive producer, Lenny Washington, said talks to bring the "Star Trek" film franchise to Microsoft have slowed while Paramount's business development unit ramps up to assume the deal-making reins sometime next month. Similarly, MTV Networks MTV Networks is a division of media conglomerate Viacom that oversees the operation of many TV network and Internet brands, including the first MTV channel. The company was established in 1984 after Warner Communications and American Express decided to divest the basic cable Inc. has taken over its Microsoft talks. MTV content is featured on America Online's most active service area. And sources say MTV's deal with AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , which expires this spring, will be renewed for another year on a non-exclusive basis. Viacom said it will continue to talk with all major online services regarding nonexclusive content deals. And Microsoft is holding talks with other content providers, as well. At least one Microsoft Network competitor said content providers would do better to offer their product on the Internet rather than allying with Microsoft. "If you go on the World Wide Web, you will be reached through the Microsoft Network and everybody else simultaneously," said Scott Kurnit, executive vice president at Prodigy, whose service recently became the first commercial onliner to offer Web access. "The Microsoft Network is just another closed platform and you limit your reach (providing content to it)." CONTACT: CMP CMP (cytidine monophosphate): see cytosine. (1) (CMP Media LLC, Manhasset, NY, www.cmp.com) Part of United Business Media, CMP is a leading integrated media company that offers a wide variety of publications and services in the information Publications, Manhasset Catherine Jarrat Koatz, 516/562-7827 Elizabeth Stern, 516/562-5162 |
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