Microsoft and AOL have long been rivals in the tech world, and have a long history of battling each other in the MSN versus AOL days. On Friday, the two companies signed a video agreement that will bring AOL videos to MSN and Bing, and make the two video platforms thrive with content.
The agreement between AOL and Microsoft might seem like a weird one for some, but it is truly just a business agreement between companies. AOL produces a ton of new videos, and the MSN and Bing Apps platform is the perfect place for it. It is a revenue sharing deal that will please both companies.
What Is This About?
AOL has a massive video library that they are looking to distribute on different platforms, and Microsoft has the viewers on Bing apps and MSN. AOL has a collection of 900,000 videos, and are from brands like TMZ, TechCrunch, ESPN, and other big brands. This will engage eyeballs and get brands to show videos on these sites.
These videos will now get to over 450 million new viewers, and is a number 3 provider of videos online. According to the press release, Microsoft will be selling the ads that appear on the videos, and then splitting revenues of these ads with AOL. Either way, its another revenue maker for both companies.
Video Big On MSN
MSN is a big platform for content and videos, and Microsoft clearly doesn’t have the video content that it needs on this platform. Now, with over 900,000 premium videos available, MSN can engage more people to stay on its site, view the ads, and read the articles and watch videos on the site.
MSN along with Bing are major properties for Microsoft, and big money makers for the company. Microsoft is always looking for new ways to build revenue streams, and by doing this, Microsoft will get a new video partner in AOL for content. These former rivals may still fight in some areas, but video content will not be one that they will fight on currently with this agreement.
AOL and Microsoft together, who would’ve thought? It’s a good idea, and means more videos on MSN to come.