Microsoft Extends Into TV Initiatives

Microsoft plans to begin marketing "media extenders," or TV set-top boxes, which allow consumers to view Web content on their TVs, and are already offered by a number of companies including Apple.

The cheapest extender, from Cisco Systems' Linksys division, is expected to retail at $300, and hit shelves by the holiday season. Similarly, Apple's extender, Apple TV, has been selling for $299 since March.

Also this week, Windows Media Center users are expected to begin receiving trial versions of "Internet TV," with full-screen ad-supported video content delivered straight to their PCs and connected TVs.

Microsoft plans to offer 100-plus hours of MSN Video content on demand--including MSNBC, broadcast, Fox Sports, licensed shows Fox's including "Arrested Development," and full-length concerts.

A startup named YuMe has been enlisted to accompany the content with ads, which can be dynamically updated after being downloaded.

"We're looking forward to working with advertisers and agencies, helping them to reach a new audience on a platform that can reach consumers on their television sets in the digital home," said YuMe CEO Jayant Kadambi. Through the deal, YuMe now has access to some 150 to 200 million streams per month, according to Kadambi. Some 90% of the company's ad impressions come from the Web, with download business no far behind, Kadambi said.

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