The Microsoft Network announced on Wednesday that it will be teaming up with the Associated Press to develop the AP Online Video Network,slated to launch in the first quarter of next year.
Based on an advertising-supported model, the network will provide AP members with news videos for their Web sites.
"We think the AP is taking a leadership position here in making a decision to shift media. This is the first time that MSN has syndicated its technology," said Todd Herman, director of advertising and business strategy for MSN.
The service will be available at no charge to the APs 3,500 newspaper and broadcast members. Based on how much traffic they generate, members will share in the revenues generated by the network.
"Since we launched MSN Video in January 2004, weve seen a year-over-year 400 percent increase in our video revenues. We are hoping to see even an 800 percent increase with this partnership," Herman said.
Microsoft will supply a MSN Video player and other technology to member Web sites, as well as sell the advertising for the fully ad-supported network.
APs broadcast division will provide the video, which will feature about 50 different stories per day, and retain full editorial control over content in the AP Online Video Network.
"Whats important to know about this announcement is that MSN has selected its video news syndication partner," Herman said. "MSNBC continues to be our content provider for news."
The network is expected to grow as members and partners contribute their own videos.
Online video has become a hotly competitive area as a more than 50 percent penetration of the broadband market has made it easier for people to watch videos over the Internet, all the while more and more advertising dollars are moving online.
Many newspapers that previously didnt have the resources to produce video content will now have it available at a moments notice.