Andre Yoskowitz
24 Jun 2007 10:45
Microsoft announced yesterday that it had strategically purchased a 1% stake in the major Chinese TV maker Changhong for about $12 million USD so that they can jointly develop entertainment products linking television and the Internet. Both companies hope to be part of the race for profits in the internet's growing status as a medium to distribute movies and other programs.
Microsoft and Changhong will begin exploring "a wide range of scenarios for digital entertainment needs," said Roger Chen, a Microsoft spokesman in Beijing.
"The project focuses on in-home network digital entertainment - how to connect PCs, TVs and the Internet to provide this digital entertainment experience," he said.
In recent months, Apple, Sony and other companies have announced their plans for devices that will allow downloaded movies and programs to be viewed on HDTVs rather than on the PC.
The fact that Microsoft chose China as a partner is no coincidence. It has the largest population of television viewers, cellphone users, and it is second behind the US in internet users. The country is also the leading producer of consumer electronics.
"Definitely China is a very important strategic market for Microsoft and on digital entertainment, a major potential market," said Chen.
Microsoft isnt the first company with this idea though, in October, Viacom launched a venture with the Chinese search engine Baidu.com to distribute MTV music videos and other materials online.
Source:
Forbes