Microsoft video player to take on iPlayer and boost stickiness

Microsoft’s launch of its advertising-based MSN Video Player is intended to both encourage more consumers to visit its portal and improve the site's stickiness as the vendor attempts to boost revenues.

But because none of the service’s content is exclusive, advertising prices around the service could well plummet over time. Dan Cryan, a senior analyst at ScreenDigest, explained the rationale to the Daily Telegraph newspaper: "The longer-term challenge for Microsoft in the future will be how to keep monetising this content as none of the content deals are exclusive. Other video sites will get the same material and the value of the adverts around it will drop."

As a result, Microsoft’s move was not going to set the web TV world on fire or change UK online TV viewing habits, he added.

The UK-only service, which has just completed a six-month trial, will include a thousand hours of non-exclusive TV programming targeted at audiences aged between 18 to 34 and young married couples in particular. Advertisers will be able to exploit 30-second slots before, during and after each programme.

More...