Microsoft, Disney Unveil Service

[TiggerRPh]

Microsoft, Disney Unveil Service
Thu Oct 24, 5:14 PM ET
By JIM KRANE, AP Technology Writer

NEW YORK (AP) - In a splashy fete in Central Park on Thursday, Microsoft Corp. chairman Bill Gates (news - web sites) and Walt Disney Co. chairman Michael Eisner announced the release of an upgraded MSN Internet service stocked with Disney's content.

"It's a real coup," Gates said, sharing a stage in the autumn-tinged park with Eisner and a pair of extras in Mickey and Minnie Mouse suits.

"We're going to gain a lot of share here," Gates said. "We're going to make a lot of consumers happy."

The two companies plan to share revenues from the dialup-only service, which includes a Disney-centric version of MSN and a smattering of free Disney content.

Neither company would disclose terms of the deal.

Gates also announced the latest MSN software, version 8.0, which adds new features — also included on the separate Disney-fueled version — as well as an improved version for those with high-speed access.

The two dial-up services cost $21.95 per month and use the same access telephone numbers, but employ separate software. Gates said broadband access costs $39.95 or $49.95. And for $9.95, those with alternate Internet access can subscribe to the MSN content.

Eisner said Disney's partnership hinged on Microsoft's inclusion of strident parental controls on children's' Internet use.

"We've been looking for a safer environment to take Disney to the next level," said Eisner, whose sharp tan suit contrasted with the casual Gates' usual open-necked shirt.

The combined Disney on MSN service includes subscriptions to Disney Adventures magazine and Disney's Blast, a premium online site for children.

Microsoft hopes Disney's distribution prowess will fuel its quest to boost its 9 million subscriber base, second among the world's Internet service providers. America Online, which last month released its own 8.0 service that bundles similar features, counts 35 million subscribers.

The MSN event, which included an invitation-only concert by pop star Lenny Kravitz, closely mimicked AOL's launch party at Lincoln Center earlier this month, featuring a performance by singer Alanis Morissette.

Eisner said Disney plans to market Disney on MSN at its theme parks, stores and on its DVDs and television shows. For its part, Gates said Microsoft will spend $300 million to market MSN 8.0.

Microsoft's marketing handiwork was already in evidence in Midtown Manhattan on Thursday, where public sidewalks were plastered with butterfly-shaped ads with the MSN logo.

A Microsoft spokeswoman said the company secured city permits to post the ads.

Microsoft intends its new software to cater to parents, who can receive a weekly e-mail detailing their children's online activity, including Web sites they visited or tried to visit and the e-mail addresses and MSN Messenger accounts of people with whom they corresponded.

The new service also adds improved e-mail filters and access to Microsoft's Encarta encyclopedia.

Disney tried once before to launch an Internet portal to compete with AOL, MSN and Yahoo. That effort, called Go.com, was abandoned after Disney decided that it diluted its key brands, including Disney and ESPN.

Eisner said he believed Microsoft offered the best technology for the new service. Disney already has a deal to deliver sports content to Microsoft's online users through ESPN.

[Roland]

Originally posted by TiggerRPh:
Microsoft, Disney Unveil Service
Thu Oct 24, 5:14 PM ET
By JIM KRANE, AP Technology Writer

Eisner said Disney plans to market Disney on MSN at its theme parks, stores and on its DVDs and television shows. For its part, Gates said Microsoft will spend $300 million to market MSN 8.0.

I pray, and I really pray that we are not going to see Free!!! 9 million hours for one month on MSN CDs at the counters of gift shops or on the night stands in the resorts.

I am going to leave a little crack in the door that this might be good. I will be afraid, very afraid to walk into the light.

[NJDad]

Originally posted by Roland:
I pray, and I really pray that we are not going to see Free!!! 9 million hours for one month on MSN CDs at the counters of gift shops or on the night stands in the resorts.

From today's NY Times:

Disney will mainly promote its version of the service by distributing disks in its theme parks, stores and its DVD packages.

There you go.

[ October 25, 2002, 07:35 AM: Message edited by: NJDad ]

[Ian]

Lovely ... Just what I want. A nice Wal-Mart feel to Walt Disney World.

I don't mind the joint venture ... I think it's a good idea, actually. But Disney ... EVERYTHING does not represent a good cross-marketing concept. MSN CD's in your theme parks is a BAD idea. It breaks the magic !

[Figment!]

Ya, I have to agree with Wacky about the marketing angle, I really don't want to go into some shop in Adventureland and see a big display the new Disney-MSN browser. Granted it may not be that brazen, but still I think eev a small counter display at the Main Street Empriuim would still even dent the atmosphere. The only place I think I could even begin to see them marketing this would be Innoventions at EPCOT, and even then I really don't see how they could tote this browser "break through" or "on the edge" technology, which is supposed to be being showcased there.

I do think the joint venture is a good idea, they really needed to do something after GO.com failed, but I really think they are going about the wrong way of marketing it.

[big blue and hairy]

Originally posted by WDWacky:
Lovely ... Just what I want. A nice Wal-Mart feel to Walt Disney World.

I don't mind the joint venture ... I think it's a good idea, actually. But Disney ... EVERYTHING does not represent a good cross-marketing concept. MSN CD's in your theme parks is a BAD idea. It breaks the magic !

Everybody breath.....OK, now lets see how Disney handles the cds, if it's just a small display, or a sign saying to ask for them, no big deal. If they go nuts, so will we.

[big blue and hairy]

Although...... One place I'm sure you WILL see it "in your face"...Innoventions.

[MikeH]

Originally posted by TiggerRPh:
Microsoft's marketing handiwork was already in evidence in Midtown Manhattan on Thursday, where public sidewalks were plastered with butterfly-shaped ads with the MSN logo.

A Microsoft spokeswoman said the company secured city permits to post the ads.

That spokeswoman might want to check about that permit again, [img]graemlins/nono.gif[/img] New York has issued Microsoft a $50 fine (way to go, that'll teach em' [img]graemlins/crazy.gif[/img] ) for posting decals on public property and indicated that Microsoft might be sued if they do it again.

[Remzlightyear]

Does this cement a deal about Microsoft sponsoring Spaceship Earth?

[DizneyFreak2002]

I believe it does Rem.... This is just the beginning... I'll scratch your back if you scratch mine kind of deal going here

[Figment!]

Or on the other hand this deal is what someone heard about; put 1 and 1 together and got 6 and started to tell everyone how Micorsoft was now going to sponser SE.