Viacom Gives Advertising Deal To Microsoft
The fall out between Viacom and Google has made waves in 2007. The row was over copyright-infringing content that appeared in YouTube owned by the search engine king. A $1 billion lawsuit has been slapped on Google. To further worsen the situation, Viacom has announced a five-year advertising deal with Microsoft. The deal is worth $500 million. Microsoft will help Viacom place ads across the latter’s network including MTV.com. Microsoft has been provided the license to serve Viacom-owned content through their Xbox Live and MSN services. Microsoft had acquired Atlas as part of its $6 billion Aquantive deal. As per the deal, Viacom will be able to use Atlas’ technology to deliver ads.
As per the deal, online advertisement firm DoubleClick will be replaced. This is a huge boost for Microsoft against its archrivals yahoo and Google. Microsoft believes that the sector of online advertising will be roughly worth $80 billion by 2010. Both Viacom and Microsoft are working together on promotions and sponsorships for MTV networks and BET Networks award shows. Viacom’s range of original content and sturdy consumer brand associations are believed to complement Microsoft’s web as well as digital advertising assets. The deal includes guarantees, revenue sharing along with content licensing. There is provision to further develop the business transactions in the future.
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