Our take...
The launch of the MSN video player signals an attempt by MSN to transition from online video advertising into online TV advertising. MSN UK has been offering short-form video content on an ad-supported basis since February 2006 but this will be the portal's first foray into long-form programming. MSN claims to have pre-sold the entire ad inventory but are running a comparatively low ad load with a single pre-roll for half-hour shows, plus a mid-roll for longer programming – Demand Five and 4oD are running twice as many ads; the ad load on ITV Player is approaching broadcast levels.

However, MSN video player will not be competing with the online catch-up offerings from the major local broadcasters. Its content offering comprises archive programming, a factor which will limit consumption. In fact the MSN catalogue will be closer to the likes of standalone UK video portal Blinkbox, which offers the some of the same programming from All3Media.

It is interesting to note that MSN has decided against using Microsoft's rich media platform Silverlight and opted instead to use the Windows Media format, presumably because the latter is ubiquitous, whereas penetration of Silverlight remains comparatively low. However, MSN has asserted it intends to migrate to Silverlight in the coming months. In the meantime, MSN will also be streaming content using the rival Flash platform in order to accommodate Mac users – by maximizing reach the portal will be able to charge higher CPMs.