MSN launches ad-supported streaming service

The software giant, which first announced plans for the free video service in October last year, said that MSN Video service will include news, sports, entertainment and other programming provided by its content partners.

It is basing the service on a model similar to that of television advertising, by selling 15-second video spots on a scheduled rotation for every five to six minutes of broadband content viewed.

"MSN has taken online advertising to the next level by offering a rich array of innovative options for advertisers," said Joanne Bradford, VP and chief media revenue office of MSN.

The video spots will be supported by contextual ads displayed on the MSN Video on-screen player, which will remain in place until the next ad runs. The company said this would enable the advertiser's message to stay top-of-mind without intruding on or detracting from the consumer's experience.

The new MSN Video service will give consumers an alternative option to premium paid-for video services such as those provided by competitor RealNetworks, which had 1.15 million subscribers at the end of the third quarter last year.

MSN Video is initially only available to MSN.com and My MSN users in the US, but the company is expected to expand into other territories such as the UK if it proves to be a success.

The service was unveiled as the company launched a new-look MSN, which it described as its "most sweeping broadband-focused services offering ever."

The new-look MSN includes a redesigned homepage on MSN.com, which the company said has been optimised for broadband to provide both consumers and advertisers with a "dynamic and more streamlined cleaner environment".

On top of that, the company's new Premium and Plus broadband-focused services, announced last summer, are now available to US consumers costing $9.95 and $5.95 per month respectively.

The new services include features such digital photo and music sharing, and tools that let subscribers view and manage multiple email accounts within the same inbox.

Separately MSN also announced a deal with online auction firm eBay to integrate eBay into the new MSN.

As part of the agreement, the popular "My eBay" functionality, which allows users to manage their buying, selling and account activities on eBay from one page, will now be accessible to US users through the "My MSN" customisable home page on MSN.

The companies said that this integration represents the first time that the "My eBay" feature is extended into a portal environment.

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